Tuesday, January 17, 2012

True Costs Leasing Gastonia Flex Space

Everyone is watching expenses right now. One area you can save some substantial money is to examine your rent agreement on commercial space. My space on Posterity Court in Gastonia does not utilize the the triple net lease agreement. In fact the following costs are included in our rent quotes.

  • City & County Property Tax on Building and Land     $80.40 per month
  • City of Gastonia Storm Water Fee                                $  2.10 per month
  • Water/Sewer                                                                  $20.00 per month
  • Dumpster/Trash                                                             $21.25 per month
  • Lawn Care                                                                     $12.00 per month
That is a total of $135.75 in taxes, fees, services and utilities included in the rent of a 1,500 SF Unit. Greater savings occur as the unit gets larger.

Note: Our Gaston County Commercial For Lease and For Sale Listings Can Be Found Using the Loopnet App & Costargo App

Thursday, January 5, 2012

Decoding Gaston County Building Permit Data

Building Permit Data From The Gaston County Building Standards Department

 Year     Permits   % Prev Yr Permits   % Prev Yr  Total      %Prev Year
              Gastonia                    County                       Permits
2007     533                               973                            1506 
2008     256               48%         559          58%            815             54%
2009     128               50%         436          78%            564             78%
2010     111               87%         332          76%            443             76%
2011       99               89%         256          77%            355             80%

2007 vs. 2011          19%                          26%                                24%     

Our rate of decline seems to be slowing and perhaps stabilizing but in real terms of pre-recession vs. current levels we are down catastrophically.

The Economic Impact of Construction can be represented as throwing a stone in a pond. After the initial splash ripples (jobs) radiate out in all directions and while time and distance reduce the size of the ripple it ripples just the same. Look at all the accouterments of home interiors, i.e. draperies, paints, wall decor, rugs, furnishings, etc., an entire network of supporting industries. On the exterior as well homes require lawn equipment and tools, landscaping materials. The Scope is well beyond the actual suppliers and manufacturers of construction materials. These ripples have a tax benefit as well.  Property Tax Values and consequently revenues increase on developed or improved vs undeveloped or unimproved property. Sales Tax applies to direct construction materials and then all the associated items outlined above. Payroll taxes apply to  the direct construction labor and yet again the ripples pay salaries, wages and payroll taxes of sales people, assembly line workers, truck drivers and warehouse employees, etc…

Whether from lack of credit in the banking system or increasing governmental regulation from all levels the Construction Crash has caused many to suffer. No clients mean a declining construction industry which causes suppliers and manufacturers to go away leading to unemployment directly and indirectly related to Construction Projects. What a vicious circle.