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Do you want to buy or sell real estate in Texas? If you answered yes, continue reading. A recent survey found that 89 percent of homeowners hire a real estate agent when buying or selling a home. Visit https://www.enrichedrealestate.com/ for more information.
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Choosing a real estate agent for your business is based on a set of criteria. Do you want to know what they're called? More information can be found at https://www.enrichedrealestate.com/
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Receive transparent commercial property valuations and innovative business solutions. More information is available at https://appraisal.enrichedrealestate.com/
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With the best real estate assessment software, you can increase your productivity and acquire useful information for your organization, and you'll be surprised at how simple productivity can be. Visit www.appraisal.enrichedrealestate.com to learn more.
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Do you want to buy or sell real estate in Texas? If you answered yes, continue reading. A recent survey found that 89 percent of homeowners hire a real estate agent when buying or selling a home. Visit https://www.enrichedrealestate.com/ for more information.
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Receive transparent commercial property valuations and innovative business solutions. More information is available at https://appraisal.enrichedrealestate.com/
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Understanding Replacement Reserves In Commercial Real Estate
What are replacement reserves and why are they important? This is often a topic of confusion for commercial real estate experts.
How much should you set in your replacement reserves? Where should you include it in your financial records? Can CRE loans help build your replacement reserves?
Below we have highlighted important factors about replacement reserves. Continue reading to see how this impacts your CRE investments.
Why CRE Replacement Reserves Matter in Commercial Real Estate
When you plan on investing in commercial real estate, you have to prepare your finances.  Replacement reserves are what you call the funds set aside for replacements. When your building is in need of periodic checks and refurbishing, you will need extra money. Having replacement reserves ready helps improve your building’s economic life.
Components of a Replacement Reserve:
Ventilation
Heating
Roofing
Air Conditioning (HVAC)
Resurfacing
Parking Lots
Etc.
You should not confuse replacement reserves with repair and maintenance costs. These are minor expenses that are under the routine operating expenses. Your replacement reserves are for irregular capital expenditures.
Finding the Right Finances for Your Commercial Real Estate Investment
CRE loans are one of the best options in financing your investment. You can get help from CRE for things like buying, refurbishing, replacements, and more.  One thing to note is there are plenty of CRE loans to choose from.
One type is the gap financing loan or commercial real estate bridge loans. It’s a short-term loan are popular with those looking for quick solutions on financing. People use this loan until a more permanent financial option is available.
You can use a bridge loan when:
You are moving  a business to a new place
When you want to buy a property in a faster way
Renovation or rehabilitation of  a property
Improving your credit score
What About for Nonprofit Commercial Real Estate Loans?
If you’re looking for commercial real estate for nonprofit loans, you don’t have to worry. There are ways you can get around with getting the money to keep operating.
Renting or buying is the biggest decision that most nonprofit organizations make. When you are renting a real estate, go with short or long term lease on the property.
It is flexible
Up-front costs are lower
You can renew the lease
When buying real estate for your nonprofit organization, you need to be careful. Only buy the place when you have the right finances. This is where you need to raise the funds.
Make use of foundation grants
Donations
Use capital campaigns
Go for government and bank loans
Have a diverse source of finances
Before venturing out into loans and CRE investments it’s crucial to learn about them. Check out your options and go with something that’s tried and tested. If you’re not sure what to do with your investment plan, ask advice from experts.
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Work-From-Home is Changing the Future of Commercial Real Estate
Remote work is nothing new. Many employees had occasionally been telecommuting from home or clients’ offices long before the COVID-19 turned Zoom meetings and Slack messages into the norm rather than the exception. However, despite the vaccine rollout, employees are not rushing to get back into the office.
Remote work is here to stay
The majority of employees wish to keep working from home at least part-time in the future. They appreciate the lack of commute, flexibility, and better work-life balance that remote work provided in the past year. Work-from-home was a success for companies as well, with the productivity of their employees remaining stable or even increasing during the pandemic.
Major companies, such as Facebook or Amazon, are switching to a fully remote or hybrid model for the foreseeable future. According to an Upwork survey, as much as 22% of the American workforce could be fully remote by 2022 – not including employees following a hybrid model. Widespread high-speed internet and the explosion of digital tools, such as Trello or Zoom, make it easier than ever for teams to work seamlessly together no matter their location. In other words: work-from-home is here to stay.
It is distressing news for commercial real estate, particularly for large office buildings that are now sitting empty or underutilized as employees work from home multiple days a week. Once a sign of prestige, these properties now represent an unnecessary expense for companies.
Long term strategies for office spaces
Single-occupant buildings, where each employee had access to their assigned cubicle, may be on their way out. However, this shift in lifestyle also presents new opportunities for investors and companies.
Some property owners are considering converting their office buildings to mixed-use or residential use since many cities are experiencing a housing shortage. Besides, employees working from home part-time or full-time often appreciate having access to facilities such as co-working spaces close to their place of residence. However, reconversion comes with many issues, ranging from zoning to physical updates.
Companies are also calling for more flexibility. Employees still need an office where they can gather to work and exchange, even if it is not a daily occurrence. However, traditional yearly leases are too long of a commitment. Instead, firms prefer shorter terms (monthly, weekly, or even daily) to adapt to their workers’ needs. Property owners may also want to expand their leases to more than one tenant. Several companies, as well as freelancers and startups, could share the space to maximize occupancy.
Besides, telecommuting has changed the way employees work. Instead of assigned cubicles, they need gathering areas to meet with clients and work collaboratively, as well as private rooms where they can focus without interruptions.
What is next for commercial real estate?
Commercial real estate is facing dramatic changes in the wake of the COVID-19. Investors and property owners must adapt to offer solutions better fitting to the expectations of both companies and their employees to survive. By working with corporations and local authorities, they will be able to thrive in a post-pandemic world.
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Using a few strategies, such as narrative evaluations, you can save up to 80% on commercial real estate valuations. Sign up for a free trial at https://appraisal.enrichedrealestate.com/
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