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

The Evolution of Commercial Retail Space

Tag: Property Management

The Evolution of Commercial Retail Space

August 3, 2023

Will E-Commerce Be the Downfall of Commercial Retail Space?

Many people wonder if e-commerce giants like Amazon will be the downfall of commercial retail space. The short answer is no; commercial retail space simply must evolve with the new normal. As technology and societal patterns change, retail and real estate will follow suit. 

Buy Online and Pickup In Store

Is a buy-online-pickup-in-store (BOPIS) option the answer? It certainly is one that large retailers are paying attention to. Stores like Target and Walmart have found significant success in offering a BOPIS option. 

Not only does it give consumers the ease of purchasing an item online, but it also provides instant satisfaction in that they can have the product the same day. While Amazon offers some same-day delivery, it is only available for some of their inventory. Therefore, when shoppers can find what they are looking for in a local store and pick it up later that day, they will likely forgo the Amazon order. 

Change Its Purpose

If you own commercial retail estate space, you may need to consider changing its purpose. With such a substantial increase in online shopping, there is a greater demand for storage space to house inventory. Online shoppers want more color, material, and size options meaning retailers must have more products on hand. Physical store locations may succeed in serving as storage locations for increased inventory. 

Additionally, without the ability to see products in person or try on clothing items in-store, e-commerce can lead to more frequent returns. While consumers do love the ability to have packages shipped straight to their door, they don’t enjoy the hassle of repacking and bringing unwanted items to a UPS store to be returned. Brick-and-mortar retail spaces can serve as drop-off locations and even offer drive-through options for customers in a hurry. 

Finally, larger retail spaces and shopping malls could transform altogether into community gathering centers or even multi-family housing. 

Overall, commercial retail space isn’t going anywhere quite yet; it’s simply continuing to shift with our needs and desires. 

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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Tips for Subleasing Commercial Real Estate

July 18, 2023

What is Subleasing?

Subleasing is common in both commercial and residential real estate, and involves the current tenant leasing their rented space, or part of it, to a new tenant. 

The new tenant, therefore, is known as the subtenant, and the agreement between the two is known as a sublease. The subtenant pays their rent directly to the original tenant, who then pays the landlord. Subleasing has many advantages, and following the tips below will ensure the process is successful. 

Tips for Subleasing

Here are a few tips to consider prior to subleasing commercial real estate:

  • Work with a knowledgeable commercial real estate agent who has experience in subleasing agreements and can advise you accordingly.
  • Research the area and property extensively before signing. Make sure it will be an excellent fit for your business!
  • Consider having an attorney review the sublease in detail to ensure the agreement is fair. 
  • Don’t be afraid to negotiate the terms of the sublease to better benefit you. 
  • Interview the tenant to make sure they are someone you can trust.
  • Throughout the sublease, communicate frequently with the tenant/landlord about expectations. 

Depending on your situation, subleasing might be the best option for your business. Subleasing can broaden opportunities for office locations and is often more cost-effective. Knowing the ins and outs of being a subtenant and following the tips above will help ensure success in your next subleasing endeavor. 

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.

Like, Share & Follow us on LinkedIn and Facebook.

#longmontcommercialrealestate #commercialrealestatebroker #northerncoloradocommercialrealestate

Pros and Cons of a Triple Net Lease

March 30, 2023

What is a Triple Net Lease?

A triple net lease is one of several lease structures in commercial real estate. In general, net leases require the tenant to pay other expenses in addition to their base rent. There are single, double, and triple net leases, which refer to the number of additional costs the tenant must pay.

A single net lease involves the tenant paying base rent and property taxes. A double net lease is structured so that the tenant pays property taxes and insurance in addition to their rent. Finally, with a triple net lease, the tenant pays the base rent plus property taxes, insurance, and maintenance.

Pros of a Triple Net Lease

There are several pros of a triple net lease. As a landlord, a triple net lease leaves little room for risk. The tenant is paying all of the building’s expenses, so the property owner can be sure they will not incur unexpected costs. 

For a tenant, a triple net lease gives more control. They don’t have to manage the building’s upkeep and appearance. Additionally, the tenant often has control over their utility usage and the associated costs. 

Cons of a Triple Net Lease

There are a handful of cons to keep in mind when considering a triple net lease as a landlord or tenant. For landlords, finding a solid tenant willing to take on a triple net lease can be challenging and, therefore, may result in vacancies. In addition, the tenant is given lots of automomy, and the landlord must trust that they have the financial ability to maintain their leases space properly. 

As a tenant, the biggest con is the risk. With complete control of the building comes elevated risk exposure. If the building starts experiencing maintenance problems, the cost falls on the tenant. Additionally, property taxes and insurance increases will directly impact the tenant’s overhead. 

Figuring out the right lease structure for your property or business can be difficult. 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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#longmontcommercialrealestate #commercialrealestatebroker #northerncoloradocommercialrealestate

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.

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Has COVID-19 Made Office Buildings Obsolete?

April 19, 2022

Has COVID-19 Made Office Buildings Obsolete? COVID-19 has profoundly changed many aspects of our society, and commercial real estate is still feeling the effects.  

The COVID Real Estate Recession

All activity in the commercial and residential real estate markets temporarily paused at the start of the first wave of the virus. The impact, however, has been far longer lasting in the office sector. Property owners are still trying to attract tenants, who had quickly realized they could work entirely from home, back to their original office spaces.

Redesigning Traditional Office Spaces

During the pandemic, employees learned they were just as efficient working from the comfort of their own home and building owners were left scrambling to find ways to make the office more appealing than staying in your PJs. Today, many landlords are infusing capital into their properties to elevate outdated finishes and create desirable amenities such as gyms, outdoor terraces and patios, and larger kitchens with trendy food and drink options.

Property Managers Challenged with Vaccination Mandates

On top of a changing physical environment and new leasing structures, property managers and owners are tasked with enforcing vaccine mandates. Or are they? Navigating legal issues, personal rights, and labor union demands when it comes to the push for immunization has become an animal of its own and a new challenge for commercial real estate owners.

Returning to the Office

Working from home can seem ideal, but employees are beginning to understand that isolation and Zoom meetings have challenges in their own right. Office buildings everywhere are coming back to life; they just might look slightly different than they did two years ago.

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

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