Attention commercial brokers, agents, property managers and landlords effective January 1, 2025, a significant shift in the landscape of commercial real estate leasing requirements come into view.
Weighted Average Lease Term, commonly referred to as WALT, is an important metric that commercial real estate investors and commercial property managers are well-versed in, or at least they better be. A WALT calculation, or figure, represents the average time remaining on the combination of leases within a commercial property, a commercial portfolio, or a commercial real estate investment and is weighted or calculated according to the proportion of rental income each lease contributes to the overall portfolio. It is a paramount factor of investment and concomitant income stability, combined with tenant turnover risk. A longer WALT calculation is indicative of a more secure income stream and lower re-leasing or turnover risks.
A letter of intent is customarily employed to reduce to writing a preliminary understanding of parties who intend to enter into a contract, or who intend to take some other action such as merger of companies. An agreement to agree to something in the future.
Managing tenant insurance is a crucial element in overseeing commercial real estate (CRE) from a landlord and commercial property management perspective. All landlords and commercial property managers should require tenants to have various forms of insurance depending on the type of business operations occupying the relevant space. Tenant insurance comes in several forms. Business renters’ insurance helps pay to repair or replace business property if it is damaged or stolen. Commercial general liability (CGL) insurance helps protect against third-party injuries and property damage. Finally, business owner’s insurance is a combination of business renter’s insurance and a CGL policy.
In the third quarter of 2023, the iconic Silicon Valley commercial real estate office market faced ongoing challenges. Net absorption recorded a negative 1.8 million square feet, surpassing the Q2 2009 record during the Global Financial Crisis of 2007-2008. The decline in net occupancy was multifaceted, influenced by reduced office demand amid evolving remote work trends, stubborn interest rates, and uncertainties in the technology sector’s hiring patterns post-Covid layoffs. Additionally, the cautious venture capital environment was shaped by uncertainties about the economy and impending Federal Reserve interest rate decisions.
Not all commercial real estate loans are conventional. Commercial Mortgage-Backed Security loans (CMBS), sometimes referred to as conduit loans, are a category of commercial real estate fixed income loans that are secured by a first position mortgage on a commercial property asset. CMBS loans are typically offered by commercial banks, conduit lenders, or investment banks, and, once they are issued, they are packaged in tranches and sold to investors.
Let’s face it, if your commercial property is tired and obsolete there are limited options to improve the overall value save for significant renovations or a complete rebuild. However, if your building has useful life, is occupied, and you want to improve value with not much investment consider adding EV charging stations. This improvement will be immediately noticed by the environmental ESG crowd. Your edifice may now acquire the allure to beckon patrons, prospective clients, and personnel who were previously beyond its magnetic reach. Moreover, there are options for additional revenue streams with EV charging stations.
A recent case of Castaic Studios, LLC v. Wonderland Studios LLC, the California Court of Appeal rendered a decision pertaining to the eviction process in commercial real estate. The ruling establishes that when a property owner extends only a license (just like a ticket to a ballpark), rather than a lease, for the use of real property, the owner cannot resort to California’s summary eviction process, unlawful detainer, against the defaulting party. Franc (2015) 233 Cal. App. 4th 744, 758-759.
In the heart of downtown Mountain View, a transformative three-story commercial development has been approved at 705 West Dana St., formerly an auto repair shop. Despite the City Council’s unanimous approval of the project by Smith Development, a notable Mountain View real estate development firm, concerns surfaced regarding the transparency of the architectural plans available for public review – which were not fully disclosed for various reasons.
The City of Palo Alto – is literally growing up – and is poised to welcome a wave of heightened sophistication in residential projects, particularly along a coveted stretch of El Camino Real just south of Page Mill Road.
Partnering with Esquire Property Management Group allows owners to have peace of mind knowing their assets and properties are being evaluated on a daily basis for efficiency, appearance, and productivity.
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