COVID & Commercial Real Estate

The COVID-19 pandemic has permanently altered our society’s way of life: for better and worse. Transcending past a mandated mask requirement, to-go boxes, and empty shelves defining our grocery stores is a world in which one would think an apocalypse was on the rise. However, with all these changes, one aspect of our life has seen an advancement that might not be for the worse; that topic of interest resides in the current success rate found within the niche of the Commercial Real Estate (CRE) industry.

Social distancing, remote-style working, e-commerce (thank you online shopping) and a behest for more space/adjustment in lifestyle has resulted in a prominent increase in demand for larger spaces. The future calls for a more spacious workplace tailored to the comfort of employees and business owners that want to adhere to a less compact lifestyle in accordance with the Center for Disease Control and Prevention’s (CDC) guidelines. Scott Witkowski, an Associate at Cohen Commercial, has seen first-hand how these changes have affected the commercial real estate environment: “In the restaurant industry we’ve seen a big emphasis placed on outdoor areas, along with some concepts expanding their kitchens to be more efficient in catering to in-house customers, as well as incorporating increasingly popular catering services.” Witkowski’s observations are echoed by the adaptations numerous companies have made across all industries to ensure that clientele is at their peak level of comfort amidst a post-pandemic period.

Unfortunately, this pandemic has not always provided that kind of light at the end of the tunnel and adjustments are not always attainable. One simply cannot ignore the infliction of economic hardship that has caused debilitating stress to countless property owners. But, it is in these tough times that result in turnover for opportunists who quickly engage when the market shows signs of revival. Our world is continuously changing, and the CRE industry is accustomed to constantly adapting.

Musk’s Boring Co. Wants Miami and Lauderdale Tunnels

Florida’s appeal is becoming evident as transit problems get worse with each passing year. While companies move south for low taxes, warm weather, and affordable spaces, the roads become more congested and difficult to navigate. The mayor of Miami, Francis Suarez, is seeking solutions to this commuter’s nightmare. None other than Elon Musk, CEO of Tesla, Inc. and SpaceX, is presenting a solution.

For more information, see the article here.

Pandemic prompts Wall Street to look south for Florida’s life and work benefits

Florida’s warm weather, low taxes, affordable space and quick, easy flights back to the Northeast have many Wall Street companies abandoning cities like New York for the Sunshine State. Companies like Elliott Management, Citadel and Goldman Sachs Group Inc are just a few to say they will open satellite offices for a location close to the beach. For commercial real agents, this is dream come true. Find out more about this positive pandemic trend by clicking here!

10 Commercial Estate Acronyms You Should Know

If you are planning to invest in commercial real estate, there are a few terms you absolutely must know before you begin. These terms – and their acronyms – are at the heart of every commercial real estate investment you will come across. The following is a compilation of some of the most used commercial real estate terms and their acronyms.

ROI – Return on Investment. ROI is the ratio which measure net profit versus the cost of the investment. The higher the ROI, the more profit you are making.

LOI – Letter of Intent. LOI is an acronym for letter of intent, which is a document expressing the intent of each party in a real estate agreement. It is not a legal binding contract, but helps to avoid misunderstandings between both sides.

CAM – Common Area Maintenance. CAM charges are the charges paid by the tenant for the upkeep of the property for use and benefit of all the tenants.

LTV – Loan-to-Value. LTV is a ratio used to asses lending risk that financial institutions and other lenders use to approve a mortgage. Loans assessed to have a high LTV are considered higher risk and therefore have a higher interested rate on the mortgage loan.

DCR – Debt Coverage Ratio. DCR measures the ability to pay the property’s monthly mortgage payments from the cash generated from renting the property.

NNN Lease – Triple Net Lease. A NNN lease is when the tenant typically pays a base rent plus an additional amount for property tax, insurance and maintenance costs.

NOI – Net Operating Income. NOI equals all revenue from the property, minus all reasonably necessary operation expenses. NOI is used to calculate the profitability of income-generating real estate investments.

USF – Usable Square Footage. USF is space you can actually occupy. Generally, hallways, stairways, bathrooms and storage rooms are not calculated in USF. However, if you rent an entire floor, then these areas may be included.

CMA – Comparative Market Analysis. CMA is the process of determining an investment property’s value by comparing it to other properties similar in size and amenities.

REIT – Real Estate Investment Trust. A REIT is a company who finances, owns, manages and operates income-producing investment properties.

About Cohen Commercial Realty, Inc.

Cohen Commercial Realty, Inc., is a full-service commercial real estate brokerage firm dedicated to fulfilling client needs quickly and efficiently throughout the South Florida market and beyond. Our property management team combines knowledge of the market and client needs with expert marketing, research and specialization. This is the reason so many owners and investors choose Cohen Commercial to handle their commercial real estate transactions. Contact Cohen Commercial today! http://www.cohencommercial.com/index.html

4 Reasons to Hire a Property Management Company for your Commercial Property

Congratulations! You’ve purchased a commercial property and are now officially considered a landlord. Managing a commercial property can be a lot of work. It’s a good idea to look for an experienced, professional property management company to help oversee your commercial property.

Here are 4 reasons why you want to choose a property management company to run your commercial property:

Protects Your Investment. Real estate investors all agree, working with a good management company is the best way to protect your investment, and in the end, can add value to your investment. An experienced management company that’s been in business for years will have seen it all and will know how to handle any problems that arise. Most likely, they can take better care of your property than you can from both the physical aspect as well as financial. Reputable management companies are skilled at forecasting, budgeting, cost negotiations, and the best management companies will have an educated, experienced Accounting staff to support.

Managing Tenants. An experienced property management team will handle all aspects of the landlord and tenant relationship. They will screen tenants to ensure they can meet their financial obligations, handle routine and emergency tenant services, as well as collect rent payments. They are also experienced in tenant lease negotiations and tenant retention. Quality customer service and communication can help decrease tenant turnover.

Marketing and Advertising your Property. Vacant space at a property is a drain on your investment. Experienced property managers are adept at supporting the sales and marketing efforts to keep vacancies at a minimum.

Less Stress and More Time. A company with years of experience will save you a ton of time and spare you all the headaches that come with trying to manage the property yourself. Experienced property management teams use industry-specific software and are highly skilled and organized. They will be able to streamline everything from emergency response, paperwork, inspections, bookkeeping, and many other tedious and time-consuming property management tasks.

About Cohen Commercial Realty, Inc.

Cohen Commercial Realty, Inc., is a full-service commercial real estate brokerage firm dedicated to fulfilling client needs quickly and efficiently throughout the South Florida market and beyond. Our property management team combines knowledge of the market and client needs with expert marketing, research and specialization. This is the reason so many owners and investors choose Cohen Commercial to handle their commercial real estate transactions. Contact Cohen Commercial today!

In Coming Wave of Pandemic-Induced Vacancies, Some See Opportunity

The pandemic is expected to change the commercial real estate community, but some developers and investors are keen to seize the chance to convert those properties into other uses.

Some retail, hotel and office space shifts developers are already planning to convert empty properties to new uses. Are you wondering what these developers have planned? Click below to see what the future holds.

https://www.nytimes.com/2020/09/01/business/commercial-real-estate-conversion-coronavirus.html?searchResultPosition=2

A Summer of Surprises

I think it is fair to say that the idea of being a receptionist is more mundane than most jobs; as that was my perspective before joining the team at Cohen Commercial Realty. After just wrapping up my freshman year at Clemson University, I knew it was time to start gaining professional experience, and CCR welcomed me with open arms. Not only have I been able to work in an extremely fast-paced, professional environment, but I have gained invaluable lessons about the importance of building relationships amongst coworkers and the positive influence that radiates throughout the workplace.

Every week is something exciting at CCR— I learned that quickly when in my first month the Cohens invited the team into their home for a Vegas themed office party with multiple casino tables, a luxurious raffle, and food for a whole village. It was the extension of their home and hospitality that truly instilled a feeling of family amongst a firm of hard-working individuals motivated by the success of this long-established firm. That is just the tip of the iceberg; the Cohens constantly provide their team with everything it takes to make their office feel like home— a baker’s dozen of bagels every Monday, an unlimited supply of k-cups and creamer, and office happy hours in their legendary lounge space.

While I thought I entered this summer job for the working experience, little did I know I would be getting to learn the secret to success that CCR possesses— the meticulous detail instilled by Bryan and Karen towards making each employee feel valued on top of their exciting work atmosphere. When work is produced in an environment that encourages humor, friendship, family and support, only success will follow.

On top of the clerical duties I perform as receptionist, I am also the Marketing Assistant, overseen by Jenna Moilanen. Jenna has allowed me to expand my skills by taking over the Cohen Blog, and that has improved my writing skills exponentially. Karen Cohen is not only Chief Operator, but an incredibly talented writer; as she graduated from Florida State University with a degree in English her guidance has allowed me to see what it is like to produce articles like this on the professional level. Whether I am posting on the CCR Instagram, writing a new blog, distributing mail or taking and transferring calls, I wouldn’t have wanted to spend my summer anywhere else. As my time at CCR slowly comes to an end, I am comforted by the relationships I have formed with the team and a newfound place to call home.

Hurricane Preparedness

Summer has arrived, but the beach days, sunny skies, and humidity do not come without a price. The state of Florida welcomes hurricane season every year at the beginning of June through the end of November. Gene Norman, CNN meteorologist, predicts that, “The 2021 season should be another above average one.” All things considered, it is imperative that we actively prepare ourselves and our properties to best withstand the potentially life-threatening tempest.

The Centers for Disease Control and Prevention (CDC) highlights the significance of taking premeditated steps in order to place yourself in a position the farthest away from plight. For yourself, families, and loved ones, the acquisition of non-perishable food, medical supplies and a sufficient water supply should be stored in your home and car. In case of a mandatory evacuation, it is also important to know your escape routes. While the unpredictability of hurricanes is inevitable, your preparedness doesn’t have to be. Stocking up ahead of time on medical, food, and safety supplies can lessen the effects of one of nature’s most savage tropical cyclones.

When building properties, Florida maintains a strict level of building codes to be able to withstand sustained winds up to 170 miles per hour. However, even commercial-sized properties must adequately prepare for these tumultuous wind gusts. Kirsty Kalley, a property administrator at Cohen Commercial, works diligently during hurricane season to help prepare properties for what lies ahead during these four months. “Preparation is the best protection against the dangers of storms, including knowing the difference between the different threat levels to plan accordingly. Have your property management contact details readily available to report any issues after a storm and to confirm it is safe to access your space,” she advises.

For more information about Hurricane preparedness, please visit https://www.weather.gov/wrn/hurricane-preparedness.