When a company closes shop

Kenhorst Shopping Center Sold

The number of occupants and the space required per occupant are the key determinates to total cost of occupancy. Consider that the occupancy costs are the multiplication of the rental rate per square foot plus the operating costs per square foot times the number of people and the space that each person occupies. There are factors that add to the total space consumption including lost space from hallways, bathrooms, elevator cores, storage areas, atriums and reception areas. This is often called the building loss factor and is an efficiency measure of the building. To these losses also add the space required for cafeterias, special computer and server rooms and conference, training areas and other special spaces.

As you can see the quantities add up quickly. Let’s use a simple example to show the impact of these numbers.

Assume 200 people at 150 SF per person. The building loss factor is 20% and there are additional space uses of 10%. The rent for office space is $20.00 PSF and the operating costs are $4.00 PSF. The table below shows the total cost of occupancy at 150 SF per person and 130 SF per person.

As you can see from the analysis, the annual total cost of occupancy goes up over $100,000 per year and the difference is over $600 per person per year for a small change in the space standards. For large quantities of people, this difference becomes exceedingly large. For a ten year lease, this is a $1 million difference in the two cases. Said another way, the difference between to two cases on a per person basis is about $625 per year and this justifies the purchase of new furniture that typically runs $3000 to $4000 per individual.

by NAI Global

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

NAI is constantly evaluating tools for providing lease administration services to our clients. However, determining the right solution for the client is not a casual effort. Below are some of the key factors that need to be discussed and understood as you work through the process of setting up a lease administration solution.

• Clearly understand the client needs and how that balances with their requests and perhaps more importantly their expectations.

• It’s important to understand the timing for getting the system populated, tested and running. This is a critical element, as it is a major undertaking to make any system functional with the client information.

• What data is available and in what format it’s stored in is critically important. Before any system can function properly, it must have a core database of information. The effort to gather the data; have it prepared for entry; entered into the system and verified that the data is entered correctly can be time consuming, potentially expensive and is probably the most important work required to make any lease administration solution successful.

• Obtaining key documents pertaining to the lease as the lease documents will need to be abstracted to provide the relevant information required for populating the chosen system solution. Documents used to provide information on leased property should be converted to electronic format and be stored within the lease administration system.

• Determining the reports or output the client is expecting from the system is an excellent tool for defining the necessary fields required in the database structure. Most systems will provide for the “normal” data requirements but your client may have a unique management structure or specific metric it wants included for each lease and these fields or data structures will need to be clearly understood as the system and data is organized in the database.

• Establish a process and responsibility for managing the system updates, imputing new leases, issuing reports and taking action as required. Without this responsibility and process the lease administration system will quickly fail to function.

The above effort (if not already done) can be quite substantial and should be started immediately, even before you select a lease administration system that best fits your client’s needs.

I would suggest that if you collect the data mentioned above and implement a process to manage the lease activity, it will assist the effort in selecting a specific system, as there are quite a few good lease administrations systems available.

by NAI Global

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com

New Listing Release – 5320 Allentown Pike – Retail Land for Sale

Click Here to Download the Full Release

Location:

5320 Allentown Pike Temple, Pa 19560

Property Info:

NAI Keystone Commercial & Industrial, LLC has been hired to exclusively represent the sale and/or lease of 5320 Allentown Pike in Temple PA.

This site has a total of 6.41 Acres, which is ideal for a retail, medical, or hospitality use. The site enjoys easy access to Rt. 222 and has frontage on 5th Street Highway. The property is located at the interchange in front of a Wal-Mart Supercenter, NAMCO Pools, Tractor Supply, and various other national tenants.

Description:

6.41 Acre Site, Zoned Highway Commercial.

Brokers:

The team responsible for the leasing and sale of the facility will be Bryan Cole 610 370 8502 and Steve Willems 610 370 8506.

Who is NAI Keystone:

NAI Keystone is a full service commercial and industrial real estate firm. NAI Keystone maintains a prominent market share in Berks and Schuylkill Counties. NAI offers various services including but not limited to; Landlord representation, tenant representation, consulting services, site development, site selection, and property management.

NAI Keystone is part of NAI Global, which is a managed network of commercial real estate brokers and companies which spans throughout the world. NAI Global has 325 offices in 55 countries and an annual transaction volume of $45 Billion.

For More Information about Local News, Market Intel, or Commercial Real Estate Opportunities; visit www.Bryan-Cole.com