Longmont , CO
(720) 600-9513
Longmont , CO
(720) 600-9513

Supply Chain Issues in Commercial Real Estate

Category: Buying

Supply Chain Issues in Commercial Real Estate

August 14, 2022

Surging Supply Chain Issues

As we all know from news headlines, COVID-19 spurred supply chain issues in many sectors of the economy. Commercial real estate is one of the many industries that continues to feel the ripple effects. 

When the pandemic began and put the global economy on hold, many businesses were caught without products. Thanks to online retailers, consumers could still shop from the comfort of their homes, but companies couldn’t keep up with the demand. Additionally, residential and commercial construction quickly began feeling the effects of supply chain shortages in various ways.

Shifting Demand

E-commerce allowed businesses to continue to reach customers even when in-person operations stopped. The rapid rise in e-commerce created a shifting demand in the commercial real estate market. 

Companies that hadn’t prepared for large volumes of online shopping and shipping began to acquire substantial warehouse space. The warehouse market tightened as demand remained strong, and prices began to rise. 

Commercial Construction

As with most other sectors, commercial construction continues to face challenges due to supply chain issues. Kitchen appliances, raw materials, windows and doors, and steel components are all seeing extensive lead times that are delaying completion. 

Additionally, shipping and product costs have increased dramatically, which, in turn, has made the construction process and the final product much more expensive.

The Solution

There is no doubt that supply chain issues will continue to impact the commercial real estate industry for some time. The best solution is to partner with a real estate professional that understands the impacts and can advise you accordingly.

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 if you have questions about the commercial real estate market in Longmont, CO, and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

How is Online Shopping Changing Commercial Real Estate?

July 20, 2022

The Shift to Online Shopping

Can you remember when buying something on Amazon wasn’t an option? Do you recall driving to several stores to find a specific product? E-commerce created a global economy that has become accustomed to ordering nearly anything with the touch of a button.

Online Shopping Changing Commercial Real Estate

The rapid increase in online shopping undoubtedly changed the commercial real estate industry in several ways.

Large-Scale Construction

With large online retailers like Amazon comes the need for expansive facilities to execute their operations. The construction of enormous distribution centers near major cities is necessary to meet shipping demands.

Changing In-Store Environments

Why would you want to drive to a store when you can purchase anything you need from your favorite spot on the couch? To attract customers, different brick-and-mortar retailers are implementing unique ideas, such as providing children’s play spaces that allow parents to shop distraction-free.

Additionally, stores are integrating technology into the shopping experience. Retailers are implementing apps that assist customers in-store and some that even allow shoppers to check out directly through their smartphones to avoid lines.

Smaller Retail Spaces

With the shift toward online shopping, some retailers are struggling to keep large locations open and are pivoting to smaller spaces. Increased efficiency in shipping allows stores to keep less inventory on hand, making downsizing a great and more affordable option for some.

Watching the Market

As with all other aspect of the world, the commercial real estate industry is constantly evolving. If you are considering investing in commercial real estate, working with a professional who is consistently watching your local market and knows today’s trends is essential.

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 if you have questions about the commercial real estate market in Longmont, CO, and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

What to Consider Before Moving Office Spaces

July 5, 2022

Time to Move

Have you outgrown your current office space and decided it’s time to move? Has the global pandemic changed your business’s commercial real estate needs? Are you looking for a more updated and functional building?

There can be many reasons for moving to a new office space. You should consider a few things before deciding when and where to make your move.

Tips for a Smooth Transition

  • Know What You Are Looking For: Before you start looking for new commercial property, make a list of must-haves. Not every office space will provide the same functionality, so it’s important to know what you need.
  • Don’t be Overly Picky: Keeping your list of must-haves in mind, you shouldn’t be afraid to compromise on a few less essential items. Keeping an open mind will help you land a new space that fits your needs without spending years looking for an office that checks every single box.
  • Find a Moving Company: Finding movers who care for your company’s possessions the way you would can seem impossible. Look for recommendations from other business owners or your trusted real estate professionals.
  • Check Your Dimensions: No matter the size of your office, you have likely acquired pieces of furniture, equipment, and decorations. Make sure that all the necessary items will fit in your new space before wasting time and energy moving them.
  • Celebrate: Once you have found your perfect new office space and settle in, remember to celebrate! Real estate shopping and moving are not always easy, so remember to reward yourself and your employees. 

Rely on Expertise

While moving office spaces may be sometimes necessary, it can feel daunting. Make sure you partner with a real estate professional with the expertise to make the transition seamless. 

Please contact Steve at WeBrokerCORealEstate or 720-600-9513 if you have any questions about the commercial real estate market in Longmont, CO and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

Pros and Cons of Hiring a Third-Party Property Manager

June 22, 2022

Does it make sense to use a third-party property manager for your rental property? Whether you are buying a single-family home or a large apartment complex, hiring a property manager will have its pros and cons. 

Hiring a Third-Party Property Manager

Let’s dive into some pros and cons of hiring a third-party property manager.

Pros:

  • Knowledge & Practice: In the same way you would rather see a trained doctor or take your vehicle to an experienced mechanic, you can trust a property manager to conduct business properly. They have created an entire career out of managing properties, and that experience can significantly benefit you or your organization.
  • Protecting Your Time: Your property manager will take care of tenant phone calls/requests, contractor coordination, and the financial and bookkeeping aspects of owning a rental property.
  • Avoiding Conflict: When you manage your own property, it’s easy for your business and personal lives to become intertwined. Having a neutral third party can help protect your private life from the emotions and stress of being a landlord.

Cons:

  • Control: Your property manager will oversee the communication with tenants and take care of tasks associated with the building. This means you won’t have complete authority to make decisions and handle issues as you see fit.
  • Cost: The fee to hire a property manager will inevitably affect your bottom line. Depending on the situation, the extra expense may or may not be worth it.

What Strategy Works Best for You?

Many factors play into whether or not it makes sense to hire a third-party property manager. You should work with a real estate professional that can help guide you in that decision based on their experience. 

Please contact Steve at WeBrokerCORealEstate or 720-600-9513 if you have any questions about the commercial real estate market in Longmont, CO and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

Multi-family Developments Easing the Affordability Issue

June 8, 2022

Rising Real Estate Prices

Real estate all over the country has seen a dramatic increase in prices over the last two years. Historically-low interest rates, coupled with minimal supply and the ability to work remotely, sent residential real estate sales through the roof. The reshuffling of the real estate market saw consumers reimagining what they wanted in their perfect home.

Many external factors have created a real estate market unlike anything we have ever seen before. While every market is unique, there seems to be one central theme—high prices. 

The Affordability Issue

As real estate appreciated at double-digit rates, many people were left on the sidelines, unable to save fast enough to keep up with increasing values. Home builders can’t build fast enough, and land has gotten so expensive that developers can’t even take the first step.

So how do we cope with this affordability issue affecting the Northern Colorado real estate market and most other areas across the country? Multi-family developments may be the key.

Multi-family Developments to the Rescue

Multi-family developments are buildings or complexes that contain multiple housing units, such as townhomes or condominiums. Developers can cut costs by buying smaller pieces of land that become home to higher-density housing. Multi-family real estate is also less expensive to build than single-family residences as units share walls, roofs, utilities, etc. 

Prices remain high, and in the Colorado market, they continue to rise, meaning buyers need affordable options. With homebuyers on the hunt for a less expensive option, the demand for multi-family units presents an incredible opportunity for those interested in commercial real estate.

Many commercial real estate investors and developers have set their sights on multi-family developments as they consider their next projects. If you have any questions about the multi-family real estate market in Longmont, CO and our neighboring communities, please contact Steve at WeBrokerCORealEstate or 720-600-9513.

Like, Share & Follow us on LinkedIn and Facebook.

Are Communal Work Spaces Changing Commercial Real Estate?

May 25, 2022

Commercial Real Estate During a Pandemic

The rapid rise of a global pandemic certainly changed the commercial real estate industry. Many companies shifted immediately to fully remote work and never looked back. Others took a brief hiatus from their corporate office buildings but knew they would return as soon as possible.

When working from home became a permanent reality for some, they relished the idea of never having to leave home. Quickly, however, many missed the office environment and thus began the recent dramatic increase in communal workspaces all across the country, including here in Northern Colorado.

Coworking Begins

San Francisco was the home to the first communal office or coworking space, opening in 2005. Since then, employees and employers alike have realized the benefits of the coworking sector. The combination of flexibility for the employee while creating a structured work environment proved beneficial.

Along with flexibility, communal office spaces foster creativity, productivity, and connection with others. Studies have shown that an overwhelming majority of people working from a coworking space perform better and enjoy the ability to collaborate with the diverse population working nearby.

Changing Commercial Real Estate

Companies like WeWork, one of the largest coworking providers, are causing the following changes in the commercial real estate industry:

  • Communal workspaces allow building owners to benefit from purchasing more space than one business can fill.
  • Some companies will not have to buy or rent a single piece of commercial real estate if communal workspaces are conducive to their business.
  • Commercial real estate owners with unused spaces in their building can collect passive income by leasing unoccupied portions for coworking.
  • More companies will continue to operate with employees across the county as they utilize the amenities that coworking spaces offer.

Is Communal Office Space Taking Over the Market?

The quick answer is no. Communal office space is increasing in popularity, but the reality is that it doesn’t work for every industry. Medical facilities, labs, and many other corporations will still need or want their own facilities for many years to come. Coworking spaces are a great addition to the commercial real estate industry and can benefit building owners, but they aren’t taking over the market anytime soon.

Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate questions or needs in Longmont, CO and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

Sustainability in Commercial Real Estate

May 17, 2022

Commercial real estate is one of many industries worldwide that is feeling a push towards sustainability. From construction practices to how the building operates post-construction, small changes make big differences.

Cutting Down on Waste

Construction at any scale is a messy endeavor. Commercial real estate accounts for some of the most significant structures built, which can come with an equally large share of waste. 

We often think of recycling common materials such as paper, cardboard, glass, and metal. Commercial construction leaves many other types of waste that builders should divert away from landfills. Concrete, bricks, wood, asphalt, and salvaged building materials (HVAC components, doors, plumbing fixtures) can be reused, recycled, or sold for different purposes.

Using the Sun

Solar power has been gaining popularity dramatically over the last decade. In addition to traditional solar panels, some companies install solar canopies over parking lots to harness the sun’s energy or use solar shingles to create an aesthetically pleasing and efficient facade.

Owners of commercial spaces are finding many ways to use natural energy sources without hindering the functionality of their buildings.

Net Zero Commercial Real Estate

Some commercial real estate owners and builders are determined to be considered Net Zero Energy or Net Positive Energy. Net Zero buildings generate enough renewable energy on-site to operate, and Net Positive buildings generate energy above what is needed to run the facility.  

Additionally, some sustainably-focused builders use top-of-the-line materials to insulate their structures and install Building Automation Systems that monitor and control major systems to increase efficiency.

It is essential to work with a real estate professional that understands the most current industry trends. Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate questions or needs in Longmont, CO and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

First Steps to Purchasing Your First Commercial Real Estate Investment Property

April 28, 2022

Make sure to follow these first steps to purchase your first commercial real estate investment property.

Educate Yourself on the Commercial Real Estate Industry

There are many avenues you can take in commercial real estate investing. You will want to narrow your focus to create the best possible strategy. Joining an investment group is a great way to get an in-depth look at how other investors have succeeded. Why reinvent the wheel if you don’t have to?

Books, podcasts, and online videos are other great resources to learn the basics of the commercial real estate industry.

Choose a Property Type

Now that you have a general understanding of commercial real estate investing, you should consider your property options. There are five main types of properties in commercial real estate:

  1. Retail – Shopping malls, restaurants, and grocery stores.
  2. Office – Smaller commercially zoned spaces to multi-floor office buildings.
  3. Industrial – Receiving warehouses and distribution centers.
  4. Multifamily – Large apartment complexes to a single duplex.
  5. Hospitality – Short-term rentals, hotels, and bed and breakfasts.

Pick the real estate category that interests you and fits your lifestyle.

Find the Right Real Estate Partners

Choose a broker that has experience in the property type you picked. Your broker will be able to explain the ins and outs of your local market and what to expect in the purchasing process. You will also want to find a commercial real estate attorney, go-to contractors, a commercial lender, and perhaps a property manager—Your broker will likely have recommendations for these.

Know the Math

Make sure you can quickly and easily run the numbers in a spreadsheet to determine the quality of the investment. Your new real estate partners will assist in

your calculations, but you want to be knowledgeable in rehab costs, projected rents, vacancy rates, and return on investment.

Commercial real estate can be intimidating, but you can guarantee success by taking the proper steps and choosing the right team. Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate needs in Longmont, CO and our neighboring communities.

Like, Share & Follow us on LinkedIn and Facebook.

 

WANTED TO PURCHASE: 1-2 acres of agricultural land near Longmont, CO

February 10, 2022

We have a new landscaping client who is looking to purchase a few acres of agricultural land near Longmont, CO.   Here are the details:

  • East of 287 out to I-25, preferably in Weld or Larimer (not Boulder) County
  • May consider a larger plot (5 acres max) and now even a home (NEW)
  • Need water rights included or at least available
  • Business is looking for nursery space

Please contact me if you are aware of anything that might fit, thanks !

Steve Longenecker, Broker

Northern Colorado Commercial Real Estate
720-600-9513, WeBrokerCORealEstate.com
Like, Share & Follow us on Linked-In & Facebook

Refer a Client to us and receive a $250 gift card!

Categories

Tags

Business Broker Business Brokering Cold Storage Commercial Construction Commercial Lending Commercial Office Space Commercial Property Purchase Commercial Real Estate Commercial Real Estate Agent Commercial Real Estate Broker Commercial Real Estate Investing Commercial Real Estate Terms Commercial Zoning Communal Office Space Coworking Coworking Space Development Industrial Real Estate Investing Land for purchase Landlord Leasing Commercial Real Estate Multifamily Multifamily Development Multifamily Real Estate Office Building Online Shopping Opportunity Zones Property Management Real Estate Auction Rental Rental Property Resale Shop building for lease Storage Facility Subleasing Supply Chain Sustainability Tax Benefits Third-Party Property Manager