Yes, I took a vacation. I really don't take many. Usually I just take a Friday off to make a long weekend. But this time I took a few extra days, and you know what? It was really nice. I didn't go anywhere fancy, just camping at Lake Buena Vista out near Bakersfield. Going to Buena Vista on Mother's Day weekend has been a family tradition of my wife's for years and it has now become a tradition for my family as well. Taking a little break from work to spend quality time with your family and friends can really help you put your life and priorities in perspective if you let it. After all, what are you working for? What motivates you and inspires you to do better, or to be a better person or to accomplish a goal that you have set? For me, it is my family. Nothing makes me happier than knowing that they are happy and well taken care of.
So the next time you have the opportunity to take an extra day or two off to be with the ones you love, I say do it! They will love you for it, and work can wait!
Wednesday, May 12, 2010
Wednesday, May 5, 2010
The Other Inland Empire
It turns out there is another Inland Empire. I found it on google just like I find most everything it seems. This one is up near Spokane, WA I found a couple of companies up there and added them to my e-mail list. Last October one of them responded to a quarterly market report that I had sent out. They asked if I had one for the Seattle market as they were thinking of expanding there. The company I work for, Grubb & Ellis has over 100 offices nationwide. Reports on almost every major market in the country are available on our company website http://www.grubb-ellis.com/ Today, that company contacted me again saying they were starting to look in the Seattle area for 50,000 - 100,000 square feet. I went to my Manager Dave Burback who knew right who to call in Seattle and before you know it I was sending out a great referral.
Tuesday, May 4, 2010
Hot Deal and a Hot Comp
In my post below I mention a lease on a 10,000 square foot building in Ontario that I am doing that starts at only $.35 per square foot gross. Well, there is a 15,000 square foot building in this complex that I think the owner would do the same deal on. Here are the terms I just negotiated on the 10,000: Three year term. Two months free rent up front. Year one $.35 gross. Year two $.37 gross. Year 3 $.39 gross. Three year option to renew with only $.01 psf increases. This is a nice tilt up building in Ontario with a yard. Call me at 909-974-4054 for more details.
This will give you an idea of how cheap properties out in the eastern Inland Empire are going for.
420 Harley Knox Blvd. Perris
84,201 square feet.
Sold for $45.00 per square foot!
This building was being marketed for sale at $65.00 per square foot. Just goes to show that sometimes making that low ball offer can pay off.
This is a +/- five year old concrete tilt up building!
This will give you an idea of how cheap properties out in the eastern Inland Empire are going for.
420 Harley Knox Blvd. Perris
84,201 square feet.
Sold for $45.00 per square foot!
This building was being marketed for sale at $65.00 per square foot. Just goes to show that sometimes making that low ball offer can pay off.
This is a +/- five year old concrete tilt up building!
Friday, April 30, 2010
Wrapping Up The Week
Another typical day in the office today. I am set to close an escrow a week from today and have been coordinating all of the last minute details between the buyer, seller and escrow to make sure that we close on time. Even the easy ones are never really easy, something always seems to pop up. But as my old boss Rick John used to say, "if it was easy everyone would do it." In this case everyone is cooperating and everything should work out fine. I'll post details of the deal once it is closed.
I also met with a new client this morning and showed him a very nice 10,000 square foot building that is for lease at only $.35 per square foot. He was pretty excited considering his current landlord has him paying $.60 per square foot for 5,000 square feet. He now has an opportunity to double the amount of space he has at almost the same monthly rent. How sweet is that?
Just to make things interesting, as I was sitting here typing I got a call from a guy who wants to put a marijuana co-op in one of the multi-tenant properties that I do the leasing for. Most property owners will avoid these guys like the plague, and my owners probably will too. I'll call them and ask but most owners just don't want their properties associated with that use. The legality of them is still questionable, even though this guy insists that he is totally legit. What do you think? If anything comes of it I will let you know.
Have a great weekend!
I also met with a new client this morning and showed him a very nice 10,000 square foot building that is for lease at only $.35 per square foot. He was pretty excited considering his current landlord has him paying $.60 per square foot for 5,000 square feet. He now has an opportunity to double the amount of space he has at almost the same monthly rent. How sweet is that?
Just to make things interesting, as I was sitting here typing I got a call from a guy who wants to put a marijuana co-op in one of the multi-tenant properties that I do the leasing for. Most property owners will avoid these guys like the plague, and my owners probably will too. I'll call them and ask but most owners just don't want their properties associated with that use. The legality of them is still questionable, even though this guy insists that he is totally legit. What do you think? If anything comes of it I will let you know.
Have a great weekend!
Tuesday, April 27, 2010
The Lead Generation Business
It doesn't matter what kind of business you are in. If you sell a product or service you are always looking for the next customer or client. While I would consider myself an expert in selling and leasing industrial real estate, I am also an expert in generating leads. Really, when I think about it, at least 50% of my time is spent doing one form of prospecting or another. Some of the methods I use to generate new leads include:
E-mails. I have spent the last several years putting together a huge database of e-mail addresses. I like e-mails because with the click of a button I can send information to thousands of people all at once.
Telephone: Yes, I still work the phones. And no matter how many times I hear no, or how many messages I leave telephone cold calling is still one of the most effective lead generators I know of.
Letters: I like to write. (Can you tell?) I usually send out letters to promote a new listing or a recent sale or lease that I have participated in. Letters are good because people will hold on to them until they need you. Just this morning I met with a gentleman who has been holding onto a letter I sent him in 2007!
Door to Door: Walking door to door can also be very effective. At the very least if I collect a business card from a decision maker I should have their e-mail address, street address and phone number that I can use to e-mail, call or send a letter to.
With no real boss but myself and no one telling me what to do, staying focused on generating leads can be hard sometimes, but as they say " work makes work." The more I prospect, the more I sell or lease.
Good selling!
E-mails. I have spent the last several years putting together a huge database of e-mail addresses. I like e-mails because with the click of a button I can send information to thousands of people all at once.
Telephone: Yes, I still work the phones. And no matter how many times I hear no, or how many messages I leave telephone cold calling is still one of the most effective lead generators I know of.
Letters: I like to write. (Can you tell?) I usually send out letters to promote a new listing or a recent sale or lease that I have participated in. Letters are good because people will hold on to them until they need you. Just this morning I met with a gentleman who has been holding onto a letter I sent him in 2007!
Door to Door: Walking door to door can also be very effective. At the very least if I collect a business card from a decision maker I should have their e-mail address, street address and phone number that I can use to e-mail, call or send a letter to.
With no real boss but myself and no one telling me what to do, staying focused on generating leads can be hard sometimes, but as they say " work makes work." The more I prospect, the more I sell or lease.
Good selling!
Monday, April 26, 2010
The Government!
I'm not going to talk politics. And this post is not about our wonderful federal government. It is about local governments. In particular either the City or County government that as a business owner you have deal with probably a lot more than you would like. For all the talk and hype that local city and county governments put out about how business friendly they are, complaints about how difficult it is to deal with these entities are some of the most common that I hear. I am all for doing things by the book, but when doing things this way severly hampers someones ability to conduct business I have to question why?
Here are a few of the top complaints:
Business Licenses / Conditional Use Permits: We all want to do the right thing, and to legally operate your business that means getting a business license from the City in which you are (or want ) to be located. A visit to the cities Planning Department will tell you if your use is permitted at the property you desire. If it is, you are lucky! But it still means you will have to shell out some cash for the license. Many times uses may be allowed, but with conditions. These conditions may include drastic improvements to the property such as street improvements, landscaping and installing block walls. You may be required to submit a site plan prepared by an architect along with more fees. If you are required to obtain a Conditional Use Permit (CUP) be prepared to spend some serious money and wait many months. Recently I leased a building to a group that wanted to operate an indoor radio controlled vehicle track. My clients were asked to submit a site plan of the property, a business plan and a traffic study. (Which cost them thousands!) The approval process took five months, and that was quick! Imagine the dilemma this puts a potential buyer or tenant in when they think they have found the right property but won't know if they can legally operate there until they go through this process. What seller or lessor is going to take their property off the market for 5-8 months only to possibly find out that their prospects CUP was denied? If you are in an unincorporated part of the County of San Bernardino you technically need a Minor Use Permit (MUP) or CUP to operate ANY business. When you ask the Counties Planning Department how long it will take to get a MUP or CUP you will be blown away! Six months for an MUP and 12-18 months for a CUP! This problem is so bad that many businesses operate without the Counties approval.
Racking Permits: A client of mine recently told me that it took six months for the City they were in to approve their racking plan and grant them permits to install their pallet racks. Six months! It takes a day or two tops to have an engineer design a racking plan. But it takes the city six months to finally approve it? My clients specifically leased a 30' clear building so that they could use a narrow aisle, wire guided system. For months they could only stack two pallets high while they waited on the city. They now tell everyone they know not to locate there.
Code Enforcement: Again, I am for doing things by the book, but some of these inspectors get pretty nit picky, and some of their requests are downright outlandish. Clients have told me that they: have been cited for having a sidewalk where a they want plants. They have plants where they want a sidewalk. They need to put up a block wall to screen their yard. They need a permit to paint their building.
Other top complaints include dealing with the AQMD or local flood control.
If you have had a problem dealing with your local goverment I want to hear about it.
Here are a few of the top complaints:
Business Licenses / Conditional Use Permits: We all want to do the right thing, and to legally operate your business that means getting a business license from the City in which you are (or want ) to be located. A visit to the cities Planning Department will tell you if your use is permitted at the property you desire. If it is, you are lucky! But it still means you will have to shell out some cash for the license. Many times uses may be allowed, but with conditions. These conditions may include drastic improvements to the property such as street improvements, landscaping and installing block walls. You may be required to submit a site plan prepared by an architect along with more fees. If you are required to obtain a Conditional Use Permit (CUP) be prepared to spend some serious money and wait many months. Recently I leased a building to a group that wanted to operate an indoor radio controlled vehicle track. My clients were asked to submit a site plan of the property, a business plan and a traffic study. (Which cost them thousands!) The approval process took five months, and that was quick! Imagine the dilemma this puts a potential buyer or tenant in when they think they have found the right property but won't know if they can legally operate there until they go through this process. What seller or lessor is going to take their property off the market for 5-8 months only to possibly find out that their prospects CUP was denied? If you are in an unincorporated part of the County of San Bernardino you technically need a Minor Use Permit (MUP) or CUP to operate ANY business. When you ask the Counties Planning Department how long it will take to get a MUP or CUP you will be blown away! Six months for an MUP and 12-18 months for a CUP! This problem is so bad that many businesses operate without the Counties approval.
Racking Permits: A client of mine recently told me that it took six months for the City they were in to approve their racking plan and grant them permits to install their pallet racks. Six months! It takes a day or two tops to have an engineer design a racking plan. But it takes the city six months to finally approve it? My clients specifically leased a 30' clear building so that they could use a narrow aisle, wire guided system. For months they could only stack two pallets high while they waited on the city. They now tell everyone they know not to locate there.
Code Enforcement: Again, I am for doing things by the book, but some of these inspectors get pretty nit picky, and some of their requests are downright outlandish. Clients have told me that they: have been cited for having a sidewalk where a they want plants. They have plants where they want a sidewalk. They need to put up a block wall to screen their yard. They need a permit to paint their building.
Other top complaints include dealing with the AQMD or local flood control.
If you have had a problem dealing with your local goverment I want to hear about it.
Friday, April 23, 2010
John Husing's Inland Empire Economic Outlook Report
Today I e-mailed out a link to Economist John Husing's most recent economic outlook report. Mr. Husing is considered to be the authority on the Inland Empire's economy and his report is packed with information on where we have been, where we are now and where we seem to be headed.
I agree with John that the recovery is beginning, but that 2010 will still be a tough year for most.
If you did not receive the link, or if you would like more information on Mr. Husing, please check out his website at http://www.johnhusing.com/
I agree with John that the recovery is beginning, but that 2010 will still be a tough year for most.
If you did not receive the link, or if you would like more information on Mr. Husing, please check out his website at http://www.johnhusing.com/
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