Mass. suburban office will transition during this decade
Kastle Systems tracks key card swipes at office buildings and claims that occupancy is leveling off at 43%. With a statistic like that, it’s understandable to jump to the conclusion that the office building sector is doomed. Fortunately, this statistic is grossly misleading, pre-COVID, occupancy never exceeded 80%. Sick days, business travel and remote work […]
Commercial Real Estate in High Inflation
Buying real estate using significant leverage (debt) during times of high inflation can make tremendous sense. On a long-term basis, rents typically rise with inflation while interest payments stay the same. Financing acquisitions using 65% loan to value (LTV), a 10% increase in net income will result in a 31% increase in cash flow! Not […]
Selecting a Broker
Specialization: This can mean different things in different markets and product types. At the very minimum, you should work with a broker that EXCLUSIVELY sells commercial real estate. While you may like the broker that sold your house, they are not the right person to help you sell your commercial property. In areas with over […]
1031 Exchanges & The 5 Most Common Options to Exchange Into
Much has been said about the new 4% tax on income above $1 million in #massachusetts. Don’t want to pay this tax? Do a 1031 exchange when you sell your property. But what should I buy with my 1031 exchange money you may ask. You must buy like-kind property, which essentially means any real estate […]
Industrial Subtypes: Small Bay
Small bay industrial buildings provide spaces that are typically below 5,000 square feet to service local operations. Often called “contractor bays” typical tenants include contractors, mechanics, recreational uses, satellite operations, small business distribution, and hybrid retail/industrial businesses. These buildings can be in major industrial parks, retail corridors, and older parts of the urban core. Tenants […]
Industrial Subtypes: Distribution
Distribution facilities are the most in-demand type of industrial property. Fueled by e-commerce demand for logistics space, including last-mile distribution. The vast majority of new construction space is built for distribution tenants. These facilities are built with excellent highway access and are typically near major population centers. High clear heights and numerous loading docks are […]
Industrial Subtypes: Industrial Flex
Also known as office/warehouse, this product type consists of warehouse buildings with a higher percentage of office space. Flex product typically contains between fifteen and fifty percent office space. To support this office space, they are typically built with more parking than traditional warehouse buildings and inferior trucking infrastructure. Many buildings constructed in the 1970s […]
Industrial Subtypes: Industrial Outdoor Storage
Industrial Outdoor Storage (IOS) facilities may include low-density buildings; however, the primary value driver is the usable land itself. Truck parking, container storage, construction material laydown, and heavy industrial uses are the most common uses of IOS sites. Until recently, these low building density sites would generally be sold with plans to increase building size. […]
Industrial Subtypes: Manufacturing
Manufacturing buildings are used for everything from microprocessor assembly to metal stamping. These buildings typically require heavy power, floor loads, drive-in loading, and often higher parking ratios for a larger number of employees. Heavy manufacturing typically occurs in buildings with high ceilings while small computers are often built-in facilities with 12–16-foot clear heights. In New […]