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Recent Blog Posts
Is Your CRE Firm “Punishing” Entrepreneurs or Agents Who Display “Feminine” Traits?
Although women have made great strides in the workplace, they continue to struggle when it comes to advancing within their own companies. Female entrepreneurs also tend to receive less funding than their male counterparts when pitching their business model or idea to a prospective investor. It has long been assumed that this bias was based on gender, but a new study offers a different perspective - that women are not being penalized for being female, but for displaying what society considers to be “stereotypically feminine traits.” Is your CRE investment firm guilty of punishing its agents and potential entrepreneurs in this way? Is there anything that can be done to mitigate the issue? The following information explains.
Study Examines Gender Bias in the Business World
Women are generally seen as warm and nurturing, and though they take risks, they tend to be more concerned with easing people's fears than closing the deal. Published in the journal SAGE, the recent study pitted both male and female entrepreneurs against one another in a pitch competition. Investors selected finalists after hearing all of the pitches.
The Basics of Real Estate Investing - Understanding Public Transportation's Impact on Residential and Commercial Real Estate Markets
When a real estate investor wants to achieve a profitable return on investment (ROI), it is important that they consider a number of variables and factors related to the property. The projected growth of an area, which is arguably one of the most critical factors in this equation, can be extremely difficult to determine, as the economy and access to jobs can change dramatically over the course of just a few short years.
Information, recently released by the Environmental and Energy Study Institute (EESI), the National Association of Realtors (NAR), and the American Public Transportation (APTA), suggests that access to public transportation may be useful in determining both the immediate growth and future growth in a given area. Learn more about the intricate connection between public transportation and real estate growth, and discover how a seasoned Naperville real estate attorney can help to increase your chances of a positive ROI on your next real estate project.
How Can the Owners of Malls and Shopping Centers Recover from the Impending Downsizing of Specialty Stores?
Mall and shopping center owners have barely had the time to develop a game-plan for the expected closures of 142 Sears stores, a requirement in their bankruptcy; now they are learning that several other specialty stores may not be renewing their commercial leases in the upcoming years. Gap and L Brands, which owns popular stores like Bath & Body Works and Victoria's Secret, are among two of the biggest retail chains that are expected to scale back between now and 2020 - and that is creating all kinds of issues for the owners of malls and shopping centers. How can they recover? Is it even possible?
Instinct, Intelligence, and Intuition Necessary for Navigating the Volatile CRE Market
The real estate market will shift and change; dips and recessions are going to happen. These are simple facts that commercial real estate life must accept. Moreover, the way an investor navigates the challenges of their market (deciding whether to sell or hold, remodel or slash prices on existing space, negotiate a deal with an existing tenant or find a new one, etc.) often has a significant impact on their real estate portfolio's future health. As such, the commercial real estate (CRE) market practically demands that investors are intelligent, intuitive, and able to listen to their gut instinct - even when it bucks the trend.
Preparing Your Commercial Real Estate Property for Premises Liability
The success and overall performance of a commercial property depends on a variety of factors. Perhaps one of the most influential is the way that owners (both property and business owner) handle and prevent personal injury liability situations. Bound to occur at some point, these incidents can cost all involved parties a great deal of time and money. Thankfully, the following sections can help you learn how preparing your commercial real estate property for premises liability can help to protect your asset (and your bottom line).
The Potential Consequences of Ineffective Premises Liability Protection
During the year 2017, more than 53,000 personal injury cases were filed in the United States. Many of these cases likely ended in a settlement, but not all. In either case, these lawsuits cause business and property owners to lose millions of dollars on an annual basis. Attorney fees, settlements, and court costs are just a fraction of the costs that can be associated with such cases. Money may not be the only loss that a business or property owner experiences; one's reputation and image can also be irretrievably damaged if the case goes poorly or receives a lot of publicity.
Evicting a Commercial Tenant for Rent Delinquency
Business owners of all types can experience a drop in sales and fall behind on their bills. Unfortunately, when this happens, it can leave the landlord in a difficult predicament. On the one hand, commercial property owners know it is usually easier to keep a current tenant than it is to find a new one, so they may be willing to wait out a slow season for a delinquent commercial tenant.
On the other hand, the lack of payment can cut into the investor's profits, perhaps to the point that it places them at risk for financial problems themselves. As such, it is important that investors not only understand the eviction process for a commercial tenant who is behind on their rent, but that they also carefully consider their options before moving forward with the process.
Should You Evict Your Commercial Tenant?
Is the House-Flipping Market Headed for a Cool-Down?
During the housing market crash of 2017, investors flocked to pick up every distressed property that they could find. Many sold their assets to other investors. Others remodeled the properties and rented them out, securing themselves a fairly steady cash flow. Still others decided to “flip” their houses and sell them. This last group of investors, otherwise known as “house-flippers” have become commonplace in the last decade, but with fears of a market cool-down mounting, many are now selling their assets and bowing out. Should you do the same, or is now the time to hold onto your assets?
The answer to this question may depend greatly on your current situation.
Profit Margins Shrink as the Cost of Repairs and Mortgage Prices Rise
Although there are many factors affecting the house-flipping market, one of the biggest is the shrinking profit margin for investors. A healthy housing market means mortgage prices are on the rise. Since flipped houses tend to come at a premium price, many buyers are lowering their expectations. Some are even willing to make the repairs themselves if it means the difference between renting a little longer and owning their own home.
Small-Scale Investors to Be Denied a Break Under New Tax Law
The Tax Cut and Jobs Act went into full effect at the start of 2019. Sadly, this new law will fall short on delivering some of its promises. A prime example is the small business tax benefit, which was supposed to allow taxpayers who made less than $157,500 ($315,000 for a married couple) to deduct 20 percent of a pass-through business’ income from their overall taxable income. Yet, in what many call a “shocking” and “counterintuitive” move, the Treasury announced that taxpayers who use triple net leases will be blocked from claiming the deduction.
What might all this mean for your investment portfolio, and what can our seasoned Naperville real estate lawyers do to help? The following information explains further.
Triple Net Leases - The “Gold Standard” in Commercial Real Estate
For better or worse, triple net leases are considered the “gold standard” in commercial real estate - and for good reason. In addition to requiring the tenant to pay the landlord for their rent and utilities, they must also submit payment for any outstanding costs, such as those related to maintenance, insurance, landscaping, or property taxes. In short, triple net leases leave for the landlord to manage or check up on while renting out their property. They simply use the money to ensure that all costs related to the building are covered; the rest is considered their return.
Two Things to Consider About Your Potential Condo Deconversion Investment
Just as trends come and go in other business arenas, they also make their mark in the commercial real estate world. The condo deconversion is one of the latest booming trends to hit commercial real estate, but some experts believe this may be more than a trend that will fade with time.
There are a few simple realities behind this reasoning: condo deconversion is based on restructuring older properties, and alternatives to new construction are continually in demand. There are - and will continue to be - older properties in need of modernization, and at the same time, real estate investors in need of more affordable construction methods. This makes the condo deconversion business model very appealing in commercial real estate, which means the market will likely continue to see a lot of them in the future.
Bitcoin in Real Estate Transactions - Wave of the Future or Total Bust?
Bitcoin, though introduced back in 2009, has made little headway in the real estate market. Still, there are enthusiasts who still believe Bitcoin real estate transactions (and other blockchain exchanges) are the wave of the future, and even real estate professionals have a mixed opinion about the future of cryptocurrency in real estate. What does all this mean for investors who are looking to sell or buy a property using blockchain, and how can a seasoned real estate lawyer help to mitigate the potential risks of such a transition? Learn more in the following sections.
Bitcoin Transactions in Real Estate
Last fall, a Miami condo made national headlines when its listing announced that the seller would only take Bitcoin for the transaction. The price, which was set at 33 Bitcoins, amounted to about $544,500 at that time. While others had allowed cryptocurrency for real estate transactions, this was the first ever “Bitcoin only” transaction.
Getting Your DuPage County CRE Zoning Variance Approved
In DuPage County, and virtually every other county in America, most land is zoned, or designated, to be used for specific things. For example, a plot of land could be zoned as single-family residential, in which case it could not be used to build an apartment complex or open a business. In most situations, large areas are made up of plots of property that are zoned in the same way. If you want to open a business in an area that is zoned as residential, you will have to get what is called a variance, or exception, to the zoning rules. In order to open the business, you would need a commercial real estate zoning variance.
Types of Variance
There are two types of variance available, and you need to apply for the correct one when seeking a commercial real estate zoning variance. The two options are:
- Area Variance – An area variance is quite common, and used when compliance with a specific zoning law would create an unreasonable restriction on the use of the land. For example, if a plot of residential land is oddly shaped, making it difficult or impossible to build a home on it while complying with standard setback requirements, an area variance would be granted.
1730 Park Street, Suite 117, Naperville, IL 60563
630-778-3818
