Property Reposition

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PROPERTY REPOSITIONING thru LISTING SERVICES

COMPETENCIES
TopicOwnership GoalsEvaluate Market OptionsAsset Mgt Plan (AMP)Re-let CampaignMonitor Perform-ance 
EducationMIT SA + PCCIMBOMIBU CREP, CAPMBaruch GCRE

The Internet has enabled information to be available 24×7; anyone can find sources for space listings through web browsing. However, securing a qualified and creditworthy tenant or buyer for a space can be challenging, in spite of high interest for a space. BREG’s listing services provides advice and performance to level the playing field to source and secure the best leasing or sales options to pick from that meet the real estate needs of your business or investment. Ten key (consecutive) procedures are followed to increase the likelihood of success.

1.  Space Evaluation.  Key points are evaluated per category to assess the marketability and market value of each potential listing assignment. A SWOT analysis of the space and property is conducted to optimize success of the listing assignment.

a. Single space lease-up. Space and property (property class), as-is condition, location, market value of rent, access to space, categories of likely users, tenant improvement allowance.


b. Sublet or Assignment.  Includes applicable points of single space lease-up, sublet/assignment clause for landlord and tenant rights, remaining lease term, as-is condition and furnishings, ingress/egress, HVAC and fire system serving space, term of sublet is shaped by needs of your business to recapture space in future, cost-benefit of direct lease with buyout amount with landlord (with associated release from lease obligations). We recommend accepting the most reasonable offer, from the most qualified and credit worthy tenant, that closely matches your existing lease terms. The goal of a sublet or assignment listing is to assume your lease terms by a company that you and the landlord can agree to.

c. Long-term net-lease.  If your business seeks to recapture accumulated equity and capital appreciation from your asset, yet remain operating from the property, the listing proposal includes a SWOT analysis of the property and transaction, your business, and the rent proposed to an investor. We explain the economic, operational, and tax benefits of selling the building to an investor with a history of owning long-term net lease investments.

d. Lease vacancies in multi-tenant property.  Space sizes, as-is condition, (property class), most-likely uses of vacancies, tenant improvement allowance, cost-benefit of assembling large space blocks for long-term lease, impact of staggering lease expiration dates on future IRR & MIRR.

e. Investment Sale (with/without like-kind exchange).   Conduct a quantitative and qualitative analysis by applying your rent roll and schedule of expenses to identify a capitalized value of NOI, then factor closing costs, loan balance, cost basis, and accumulated depreciation to identify the benefits of net proceeds of sale or completing a like-kind exchange. Advice is customized to meet your ROI needs for equity placement.

2. Listing Proposal.  A comprehensive written report includes an executive summary outlining key points, a market summary, valuation of the space, explanation of findings, recommendations for offered rent, lease term, tenant improvement allowance, commission, or offering terms of sale. If the assignment is to lease multiple spaces within a multi-tenant building, the listing proposal presents the lease-up projection as individual contributors to overall IRR and MIRR.

3.  Marketing Plan.  Success of a listing assignment is dependent upon a well thought-out marketing and public relations plan to source tenants or buyers under favorable or adverse space, property or market conditions. A list of potential use categories, segments to market, offered rent, lease concessions, suggestions to stage the space for listing brochures, open houses, and space tours are integral to the marketing plan.

4. Marketing Services.  Tactics of marketing are brought to market to space users directly and the brokerage community directly and via privately-owned yet publicly available listing databases. Marketing materials are presented to C-level decision-makers to identify a need for and interest in your listed space or property. If the listing is an investment sale, we connect with chief investment officers to assess their interest in buying the property.

5. Contract.  An attorney focused on commercial real estate can be sourced to meet your needs for legal services and advice, within budget limitations. A signed term sheet of mutually accepted transaction terms are turned into the lead attorney to process and negotiate legal terms. A Good Guy Guaranty (a/k/a Limited Guaranty) will be suggested if it adds integrity to the payment of future rent and can be enforced.

6. Commission Rate Card.  A schedule is prepared to inform you of the compensation associated with the listing services. The schedule includes a payout calendar for lease and sublet/lease assignment transactions.

7. Listing Agreement.  A listing agreement is prepared to match the verbal understanding of listing terms and the complexity of the listing assignment.

8. Competencies and Project History.  A profile of the BREG agent assigned to your listing assignment is referenced from LinkedIn.

9. Progress Reports.  Progress reports are submitted and meetings are held at scheduled intervals, to inform you of progress of the assignment to secure a tenant or buyer. Advice is offered about which users to pursue to meet your objectives for the listing. Expect more frequent discussions as a tenant or buyer is pursued to complete a transaction.

10. Transaction Services.  BREG handles interest in the space from all sources, coordinates and/or shows the space, evaluates all offers, shapes revisions to offers, negotiates the terms of all offers consistent with a mutual understanding of deal terms, coordinates completion of legal services, coordinates construction of space, and move-in date (with landlord’s property management if applicable).

If you agree the listing services outlined above could be valuable to your business or asset portfolio, request a free 30-minute consultation with me by filling out the “Request a Consultation” form in the About Us web page. Please write “Listing Services” in the subject line, paste the contact information of your executive assistant or COO into the message body. I will reply within 24 hours to schedule an exploratory call to assess your specific needs. Thanks for reading, perhaps I’ll hear from you soon. ###

Corp Advisor
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