Commercial Construction

Choosing the Right Building Site for Your Commercial Property

May 23, 2024

Resale or New-Build?

Resale or new-build properties: Which one is right for you? Commercial investors commonly choose to purchase already-built property to rent out or use for their business. Others, however, focus on finding vacant land to accommodate new construction.

The development process of vacant land requires the right contractors and sticking to a strict budget to ensure a solid investment. For those with the time and expertise, development can bring substantial returns in commercial real estate.

Choosing the Right Building Site

Choosing the right building site is a primary factor behind the success of a commercial real estate investment. Here are a few things to consider to guarantee you select the best piece of land:

Zoning: If the zoning isn’t correct, you won’t even be allowed to begin construction. Make sure the sites you are looking at have the proper zoning to accommodate your desired commercial building type.
Traffic: Does the type of property you’re building need to be visible? Analyzing traffic patterns around the parcel is essential.
Size: Each piece of land will have building size restrictions. If you’re planning to build a sprawling office complex, you need to ensure the land has space for adequate parking, walkways, etc.
Soil Testing: Nothing is worse than buying a building site only to find poor soil conditions. Be sure to recruit a geotechnical expert to conduct the proper soil testing before purchasing.
Utility Access: If you are looking for land in more remote locations, you need to determine the access to utilities. Significant expenses can be associated with connecting to power, water, and sewer lines.
Construction Access: Depending on the scale of your construction, a general contractor can help you determine the access needed for machinery. Easy access to a building site can save time and money.
Neighboring Sites: What do the neighboring sites look like? If they are already built out, make sure they will be a good fit with your new commercial property. If they are vacant, it’s crucial to understand the zoning so you know what may be built in the future.

Helping in Your Search

At Northern CO Commercial Real Estate, we take pride in helping you find the perfect building site for your next development project. If you have questions about commercial real estate, please contact Steve Longenecker and Northern Colorado Commercial Real Estate at WeBrokerCORealEstate or 720-600-9513.

We give out $250 gift cards for referrals that become our real estate clients.

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Are Apartments the Answer to Unused Office Space?

November 13, 2023

Much of the workforce now has the ability to work part-time or full-time from home. Remote work, in turn, has freed up a large portion of commercial office space in certain areas.

At the same time, many metros across the country, including Denver and the surrounding suburbs, are facing housing shortages. So, how do we fix the problem? Transforming unused office space into apartments may be the answer.

Office Space to Apartments

Converting office space to apartments is rapidly gaining popularity across the United States. If you are a commercial real estate owner, there are a few things to consider before making the decision.

Zoning

Changing a building’s use depends on how the property is zoned. When a property is built as commercial space, changing the zoning to allow for residential use can be a complex and lengthy process. Be sure to check city, county, and state regulations to determine whether it’s possible to change how your building functions.

Budget

Converting office space to apartments is not for the faint of heart. The infrastructure of the building will need to be entirely reworked to account for new plumbing, electrical, HVAC, etc. If you are interested in diving into this development project, be sure you have the budget to support its completion.

Investment Strategy

Considering your investment strategy is a crucial aspect in making this decision. Would you prefer to manage residential space or office space? Both involve a different set of skills, tasks, and potential problems. Additionally, offices and multifamily residential each bring differing returns on investment, so it’s crucial to pick the one that supports your long-term goals.

The Good News

The good news? In real estate, you always have options. Converting the use of your commercial assets can be an extremely successful strategy when done wisely. Talking with your trusted commercial real estate advisor is the best first step.

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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Location, Location, Location: Does it Really Matter?

August 17, 2023

Everyone has heard the infamous real estate saying “location, location, location”. But how much does location really matter?

For many years, real estate professionals have touted location as the most essential aspect of any property. It seems to make sense that a home in a desirable neighborhood would be an ideal place to live. Additionally, buying a short-term rental in a resort town where people love to vacation is a savvy investment strategy.

The question, therefore, is: What about commercial properties? Does location matter as much in commercial real estate?

Does Location Matter in Commercial Real Estate?

The short answer is yes. Location matters greatly in commercial real estate. The longer answer is that it heavily depends on the type of property.

For example, location is vital when considering potential property options for opening a restaurant, as the building and sign need to be visible to passersby. If your restaurant isn’t in a highly-visible location, you will miss out on many potential customers.

On the other hand, you must consider location differently if you are considering purchasing commercial real estate to open a storage facility. Your building may not need to be exposed to quite as much foot and vehicle traffic, but you will need a location that provides easy access for your target demographic with storage needs.

Additionally, to make a commercial real estate investment profitable, you may need to consider different locations based on price. Depending on the business and your goals, a prime location with a hefty price tag may make sense, or a smaller price tag with a better cash flow may be the best option.

Working with a highly-qualified commercial real estate broker is the best way to find the property and location that is right for you. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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Opportunity Zones in Commercial Real Estate

February 1, 2023

Opportunity zones encourage private real estate investors to seek new investments in lower-income areas. Tax incentives reward investors who take advantage of the opportunity zone program. Tax deferrals, general reductions, and adjustments of capital gains taxes make opportunity zone investments appealing.

What is an Opportunity Zone?

An opportunity zone is an often up-and-coming area with a distressed economy. The general goal in deeming an area an opportunity zone is to find an influx of funds to kick-start the economy and create new jobs.

The government aims to entice investors with tax benefits and, in return, see new development, land improvement, and property renovations. The establishment of new recreational facilities, restaurants, etc., creates more jobs in the community. Furthermore, even the construction and renovation processes provide job opportunities for community members seeking work.

Who Should Invest in Opportunity Zones?

Typically, long-term investors are the ideal fit for investing in opportunity zones. Investors only realize some tax benefits after a specified period (10+ years). Therefore, if investors hope to liquidate their assets before taking full advantage of the tax incentives, opportunity zone investing may not be the right strategy.

If you are unsure whether or not opportunity zone investment is an option for you, consult your team of local real estate professionals. Please reach out to Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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Build-Outs in Commercial Real Estate

January 18, 2023

A commercial build-out comes into play when a space, previously occupied by a tenant, is now leased by a new business that will use the suite differently.

Tenants use commercial real estate spaces for various reasons, and every renter has their own needs. Some spaces may be the perfect fit as is, and some will require minor or extensive renovations to suit a new tenant.

Commercial Real Estate Build-Outs

A commercial real estate build-out refers to anything required to make a space ready for your business. Depending on the existing building, a build-out may include new lighting, removing or adding walls, designing a waiting area, installing a kitchen, or creating new offices or storage areas.

If the current space functions well for your business, a build-out may be unnecessary, and you may simply add a fresh coat of paint to complement your brand.

If your company is looking for new office space, you will likely be able to find a building that works efficiently as is. If, on the other hand, you are looking to open something more unique, like a bar, restaurant, or arcade, you will likely renovate (build-out) to create the right atmosphere.

Who Pays for a Build-Out?

There is no perfect answer as to who pays for a build-out. Everything is negotiable in commercial real estate transactions, and the same applies to a build-out. The landlord may cover the expenses, the tenant may be solely responsible, or they may share renovation costs, depending on the negotiated lease.

Be sure to consult an experienced commercial real estate broker as you choose your new space and decide on a build-out strategy. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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Top Trends in Modern Office Building Space

October 11, 2022

Commercial real estate and the use of office buildings has dramatically changed in recent years. Coworking spaces, work-from-home options, and modern technology have created opportunities that the general workforce never had before.

Overall, standard offices have transitioned to more inviting and collaborative environments. Below are a few of the top trends in modern office building design.

Efficiency

As with most newer construction and remodeling, office buildings are making sure to emphasize efficiency when creating unique spaces. Using durable and high-quality materials reduces repair and maintenance spending and cuts down on utility costs over time.

Collaboration

Cubicle walls separate many traditional office spaces at every turn, while newer designs provide space for collaboration. Employees now sit at smaller workstations within a larger open area. Forgoing the heavily divided space allows team members to meet and collaborate easily.

Visually Appealing

New office designs include modern furniture and interior elements, plenty of color, open concepts, and abundant natural light. Updated finishes and colors make for an energizing workspace, and the use of glass walls to separate offices and meeting spaces creates a bright environment.

Built-In Technology

Down to the minor details, companies are designing their offices with plenty of built-in technology. Conveniently placed outlets, projectors and smartboards, and wireless phone charges are keys to creating a thoughtfully designed work area.

Recreation

Beverage stations, ping pong lounges, and nap rooms—Who would’ve thought these features would end up in office buildings? Unique recreation spaces have become increasingly necessary to recruit and keep top talent.

Innovative Meeting Spaces

Conference rooms and large private offices are a thing of the past. Open concepts allow for team meetings with employees remaining at their workstations. Additionally, updated offices are more likely to feature smaller meeting hubs for a few employees to hold meetings or take private phone calls.

Looking for a New Office Space?

Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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What to Consider Before Your First Development Project

September 14, 2022

What is Commercial Real Estate Development?

Commercial real estate development involves purchasing a piece of land or an existing structure and creating a new facility. This could mean purchasing land and building an apartment complex or buying an old commercial warehouse and renovating it into a wedding venue.

As you might imagine, the development process has many moving pieces. Some investors shy away from development projects and stick primarily to buying already-built structures. However, when done correctly, development can yield significant profits for willing investors.

What to Consider Before Development

Before beginning a commercial real estate development project, there are a few essential items to consider.

Risk

While the risk of development tends to be higher than simply purchasing an existing structure, it can pay off in the long run. Before developing, be sure you fully understand and feel comfortable with any associated risks.

Financing

There are many types of commercial financing, including lines of credit, construction loans, and portfolio loans. Connecting with an experienced commercial lender will help you determine the right kind of financing for your project.

Building Site

Choosing a piece of land or structure can be one of the most challenging parts of the process. Your real estate agent will help guide you through contract negotiation, zoning regulations, and any necessary inspections.

Construction

As the developer, it’s your job to bid out and supervise construction. Managing subcontractors can be time-consuming, so it’s important to allot enough margin to navigate challenges that arise through the construction process.

Sale or Leasing

Finally, when all is said and done, you must be sure you have the right sales or leasing team to market your new development and find the right buyer or tenant.

Build Your Real Estate Team

Before beginning your first commercial real estate development project, you should spend time assembling the right team. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 with any questions or if you have any commercial real estate needs in Longmont, CO, and our neighboring communities.

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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.

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.

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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.

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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.

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Choosing the Right Building Site for Your Commercial Property

Resale or New-Build?

Choosing the Right Building Site

Helping in Your Search

Office Space to Apartments

Zoning

Budget

Investment Strategy

The Good News

Does Location Matter in Commercial Real Estate?

What is an Opportunity Zone?

Who Should Invest in Opportunity Zones?

Commercial Real Estate Build-Outs

Who Pays for a Build-Out?

Efficiency

Collaboration

Visually Appealing

Built-In Technology

Recreation

Innovative Meeting Spaces

Looking for a New Office Space?

What is Commercial Real Estate Development?

What to Consider Before Development

Risk

Financing

Building Site

Construction

Sale or Leasing

Build Your Real Estate Team

Surging Supply Chain Issues

Shifting Demand