You can’t get every #CRE deal

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Our company works hard to get every commercial real estate lease that comes along.

These leases are a combination of new business, renewals, expansions, downsizes, etc.

No matter the situation, we diligently work to “win” each lease with an approved tenant.

However, you can’t get every commercial real estate deal.

We are all in business to make money. (Duh!)

Because we are in business to make money, some deals just cannot be attained.

For example, we recently lost a long term national tenant who chose to sign a new lease at another property.

Was it anything we did wrong?  Nope.

Could we have put them in a similar building or built a similar building?  Yep.

Would we have made any money on the deal, short term or long term?  Nope and possibly.

Our tenant, let’s call them Widget Sales, was in a multi-tenant building.

Widget Sales had a showroom, office and warehouse space and was looking to expand.  They needed a showroom double the size, office 50% larger and warehouse space 150% larger with high ceilings.  Widget Sales also wanted a standalone building.

Our company priced a new building for Widget Sales competitively.  Our contractor went back to the drawing board a couple of times to get the price as low as possible.

However, Widget Sales was not interested in signing a long term lease.

Our company told Widget Sales that we could not sign a short term lease for a brand new build-to-suit building.  To make matters worse, there were some specific details that would have made this building hard to retrofit for another tenant without spending a substantial amount of money.

The problem was that Widget Sales was not necessarily looking for a brand new building.  They just wanted their wish list items met, whether this was in a new building or not.  And, Widget Sales had a budget that was drastically lower than what we could offer for a build-to-suit.

Our company tried to make the numbers work every which way.

But, as mentioned above, we are in this business to make money.

Sure, we would have made money had Widget Sales stayed for a few renewal terms but the return on our initial investment would have been far lower than any deal we have ever signed.  Plus, if Widget Sales left our property, we would have been in a bad situation with a building nobody could use.

Our company offered existing space in another multi-tenant building at prices comparable to what their budget was.

Widget Sales insisted on a standalone building.

Finally, a standalone building came on the market with nearly identical specifications to what Widget Sales required.

Our company could not compete with the pricing offered on this new building.

Widget Sales gave us the opportunity to match the price of this other commercial property, but there was no way we could even come close.

The owner of the building Widget Sales was interested in was from out of town and was only interested in keeping the building leased.  Thus, the owner was willing to accept a less than market value price to keep the building occupied.

We admire the owner for pricing the building below market value – he was able to sign a national tenant to a space with minimal renovations for what could be an indefinite landlord-tenant relationship.

The main problem was our company did not have what our client was seeking.

When that happens, it is awfully hard to reach an agreement where both parties can benefit.

Our company could not benefit so we had to pass on this tenant.

After all, our company can only stay in business by making money.  And sometimes, that means passing on a commercial real estate deal.

Please feel free to leave comments.  We promise to read them all.  You can also email us with any questions/comments at leasing@seawaybusinesspark.com.  As a reminder, we provide office space for rent and warehouse space for rent in Gulfport, Mississippi.  For more information, visit our website at www.seawaybusinesspark.com or call us at (228) 575-7731.

All Signs Point to Yes (But the Answer is Still No…)

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We have all been there. 

A deal that seemed prime for the taking.

Your property was clearly the best fit for the client.

After all, the location was great, your pricing was competitive and the tour seemed to go perfect.

You started talking seriously with the other side and were told by representatives that a deal would be made.

Bingo!

Then, you hear back from the other party’s representatives.  Something changed and your client opted for another property.

Hopefully, you did not hold the property or miss out on any other potential prospects because you had a “live one.”

If you have been in commercial real estate for long enough (or any business, for that matter), some variation of this scenario has happened to you.

Our story goes something like this: (Note that the details have been changed slightly to avoid divulging company names.)

AquaCompany does environmental testing of the city’s water supply.  AquaCompany is a national company that has 350 locations.  The local office has a small staff and needs about 6,000 square feet of industrial space, with about 10% office.

AquaCompany enlists brokerage company Brokers 4 Us to find a suitable office/warehouse space.

Brokers 4 Us contacts our office to see if we have anything that will suit its clients specifications.  We tell Brokers 4 Us that we have an as-built space nearly identical to their client's requirements.

Brokers 4 Us sets up a time to view the space with its client.  The tour goes very well.  AquaCompany appears to like the location and says the space works perfect for what their long term needs are.

Our office meets with Brokers 4 Us right after the tour to discuss a proposal.  We price the space competitively.  After all, this is a national company and we would be thrilled to advertise AquaCompany as one of our tenants.

Brokers 4 Us tells us that there are only 2 properties that AquaCompany is considering.  The other location is a dilapidated building that needs renovations and while it is in a retail area with high traffic counts, AquaCompany does not need to market to the public, as they do environmental testing for water.

Two weeks pass.  We call Brokers 4 Us for an update.

We are told AquaCompany has not yet made a final decision.  There are still only 2 properties (ours included) that AquaCompany is considering.

Our office asks Brokers 4 Us if we should cut the price.  This was during the market crash and the space had been vacant for several months.  We were thrilled to have the space occupied by anyone, especially a national credit tenant.

“No need,” we are told by Brokers 4 Us.  The other property’s landlord has refused to pay any sort of commission to Brokers 4 Us.  AquaCompany must pay the brokerage fees, making the monthly rental rate significantly higher than what our company was quoting.  “Just sit back and wait for them to make a decision,” Brokers 4 Us says.

Another week passes with no phone call.

Again, we reach out to Brokers 4 Us.  AquaCompany went with the other property.  “It makes no sense!” Brokers 4 Us tells us.  The rent is a good 20% higher with the other property, the building is in bad shape and they have to fight retail traffic for a business that has zero walk-in traffic.

All signs pointed to yes, but the answer was still no.

You can never bank on something until it is signed on the dotted line.  Thankfully, we did not pass up on any prospects.   As a general rule, we never take a space off the market unless a letter of intent is signed.

Remember, it’s just business and anything can happen.

Please feel free to leave comments.  We promise to read them all.  You can also email us with any questions/comments at leasing@seawaybusinesspark.com.  As a reminder, we provide office space for rent and office/warehouse space for rent in Gulfport, Mississippi.  For more information, visit our website at www.seawaybusinesspark.com or call us at (228) 575-7731.

Separating Wants from Needs in CRE

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You want the beautiful office in the new high rise building downtown.  But does your business need this?

When you are leasing commercial real estate space, you need to separate your wants from your needs.

Let’s give an example to illustrate how to separate wants from needs:

Your favorite music star is playing a concert and tickets are about to go on sale.  Tickets cost $150, which doesn’t include parking, concessions, etc.

 

You obviously want to go to the concert.

But do you really need to go?

In the above example, there are 2 ways to look at the wants and needs of going to the concert:

1. You want to go to the concert but the tickets are more than you can afford.  You need to be able to pay your bills.
2. You want to go to the concert to get away for the night.  You need a break with a night off.  Because you can't afford the tickets, you could substitute dinner and a movie instead, which will give you the same break as going to the concert.

Some needs are easy to identify like food, clothing and shelter.

Other needs are harder to identify because they might involve your feelings or because you have a preconceived notion about how to satisfy that basic need.

So what does this have to do with CRE?

You have to make sure you are fulfilling your business’s needs in a commercial real estate space rather than your personal wants.

How do you accomplish this?

A good starting point is to sit down with your team and make a wish list.  This same analysis applies for tenants and landlords and whether you are buying, selling, expanding, downsizing, renewing, relocating, etc.

Once you make your wish list, analyze each item.

Wish List Item 1: Relocate to the high rise building downtown currently under construction.

Wish List Item 1 is obviously a want and not a need.  You want to move into this building but you don’t necessarily need to.  Maybe you need to expand, move to a new location, downsize, etc., but you don’t need to be in a specific high rise building in downtown.  Figure out what your business actually needs and go from there.

Wish List Item 2: Our office needs at least 10 private offices.

Wish List Item 2 is a bit more complicated.  Do you need 10 offices or do you just have 10 employees who need work space?  If you find a space with a large open area where cubicles can be set up, would this accomplish the same goal as 10 separate offices?

These are the types of questions that need to be asked in order to separate wants from needs.

Wish List Item 3: My warehouse space needs to be zoned for industrial to accommodate my business.

Wish List Item 3 is certainly a need.  Your business obviously cannot operate if it is zoned improperly.

How To Avoid SURPRISES At Your New Commercial Real Estate Space

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Picture this:

You just went through the entire relocation process for you new commercial real estate space and did everything you were supposed to do.

Start the process one year in advance of your lease expiration?  Check.

Do your market research?  Check.

Tour several different spaces within your target market?  Check.

Submit offers on a couple of your top choices?  Check.

Once you got the best possible deal for pricing and lease term, you negotiated your lease agreement.  At last, you just moved into your new space.

Fast forward one month. 

It just rained every single day for one straight week.  You operate a retail business in a strip center, and the parking lot is flooded.  People do not want to use half the parking lot because it is under a couple inches of water.  Frustrated by this inconvenience, several of your customers never enter your store.

You may not have any rights under your lease agreement either.  While parking in 2 inches of water is certainly an inconvenience that might drive customers away (no pun intended), it does not prohibit someone from parking and entering your store. 

Sounds like a bad situation, right?

What can be even more frustrating is that you could have avoided this by performing some unconventional due diligence.  And no, we are not suggesting that you analyze engineering plans or site elevations to determine whether the parking lot is going to flood.

All you needed to do to avoid flooding fiasco would have been to drive by your new commercial real estate space several times! 

Drive to the space and surrounding area in the morning during rush hour.  Go there during people’s lunch breaks.  Check it out during the evening when everyone is on the way home.  And make sure you go during inclement weather.

All tenants should drive by their future space – not just those involved in retail.

Flooding can be just as big of a deal for office and industrial tenants as well.  Employees, just like customers, do not want to walk through giant puddles to get into their space.  Shoes/clothes get ruined, it makes the floor slippery which is a slip hazard and liability, trucks may be prevented from making deliveries/pickups, etc.

And flooding is just one example of a problem that could arise if you only visit your commercial real estate once or twice before signing a lease.  Other problems include traffic congestion, noise levels, smog (in certain areas), neighboring tenants taking up lots of parking at certain times of the day, the list literally goes on and on.

Also, mix it up on the actual days that you visit.  Make sure you do not always go on a Wednesday, for example.  Here’s why:

We heard a story of a tenant in a downtown retail shopping area in a small town.  During the warm weather months (and this was in Florida so pretty much every month except December, January and February), there was a farmer’s market from 3:00-5:00.

People were not allowed to park on the street because it was sectioned off for people walking around the farmer’s market.  Customers would have to park in a garage several blocks away in order to visit the store.

Guess what?

Fridays afternoons were never busy.

And Friday was an important day for this tenant and losing out on this business was devastating.

Unfortunately, there was nothing they could do about it.

Again, this situation could have been avoided had the tenant driven around the potential space several times before signing a lease (especially on a Friday if that was a key day for their business).

A quick ride to your future space will paint a picture of what you can expect at any time of the day and from any situation. 

What do you have to lose? 

Worst case – you just confirmed that you selected a great space with no surprise issues. 

Best case – you discovered a “hidden issue” with your new space.  You can now either use this as leverage in your negotiations or find a new location.

Conclusion

There are several items of due diligence you should perform before signing a lease agreement for your new office space or warehouse space.  Most of the time, you can perform the due diligence from the comfort of your own desk.  You can make phone calls, read reports, negotiate a lease, etc.  However, some items require you to get in your car and drive by your space.

You might be asking yourself, how likely is it that my location will flood?  And if it does flood, what is the big deal if it is only once a year? 

Trust us, that one day that it floods will be the worst possible day it could have been. 

It will always fall on a day that you had your annual sale, meeting with a big client, when you were in a huge hurry, etc.

We sincerely hope you are enjoying our blog posts.  We welcome any and all questions and comments.  If you are looking for commercial real estate space in southern Mississippi, please give us a call at (228) 575-7731, email us at leasing@seawaybusinesspark.com or visit our website at www.seawaybusinesspark.com.

5 Questions You Should Ask Your Landlord Before You Sign a Lease

5 Questions You Should Ask Your Landlord Before You Sign a Lease

Touring office space and warehouse space is no easy task.  You probably only search for space when your lease is about to expire, which might be anywhere from once a year to once every ten years.  You are inherently at a disadvantage to your landlord, who does this for a living and might negotiate several lease agreements each month.

Wouldn't it be nice to have a list of questions that you need to ask every landlord?

As a landlord of commercial office space and industrial space, we have heard every type of question from prospective tenants.  Some questions catch us by surprise (“Can we paint the warehouse floor bright yellow?”) and some questions are to be expected (“What is the average monthly power bill?”). 

By no means could we provide an exhaustive list of every question you should ask. What follows is a list of 5 questions you must ask your prospective landlord to put yourself in a better position to make the best decision for your office space or warehouse space needs.  Just remember, there are no stupid questions.  If it is important for you to know the answer as a tenant, it should be important for your landlord to give a response.

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     1.  Other than monthly rent, what additional charges can we expect?

You would be surprised with how many people do not ask this question.  As responsible landlords, we always reveal what additional charges there are before a lease is signed (even when not asked and even though such charges are covered in our lease).  However, before you can make an intelligent decision about an office space or warehouse space to rent, you need to have an accurate view of your additional expenses.

For example, Office Space A is advertised as $2,000/month which is inclusive of all utilities and internet.  Office Space B is advertised as $1,750/month but does not include anything other than the space itself.  If you don’t ask what additional charges you can expect to incur, you may be surprised by bills you have to pay for like internet, groundskeeping, water/sewer, waste disposal, power, etc.  A space advertised for less might end up costing more once you add in all the extra expenses.  You should probably create some sort of spreadsheet that itemizes the different charges so you know what your total monthly expense will be.

     2.  May we see a copy of your standard lease agreement?

Before you get too far into discussions and spend too much time negotiating back and forth, you should ask for a blank copy of a lease agreement.

Picture this scenario: You negotiate back and forth with your prospective landlord on the price and term of the lease.  Other items are discussed, such as property taxes and insurance.  The landlord tells you that the tenant is not responsible for property taxes or property insurance.  Several months pass and at last, you have reached a verbal agreement with your landlord.  And just in time, because your existing lease expires in 30 days.  Then, you get the lease form for signature.  Surprise!  Property taxes and property insurance are passed through to the tenant in the form of additional rent.  The landlord clarifies what was meant - the landlord pays the original bills in a lump sum and the tenant pays one-twelfth of the bills each month on top of the monthly base rent.  The landlord "thought" the tenant meant whether the tenant paid the actual property tax bill and was responsible for finding an insurance policy.  You formulated budgets based on a significantly lower monthly rent and cannot justify this additional expense for your business.  Meanwhile, you now have 30 days to move out of your existing space and find a different space to lease.  What now?!

This situation is not all that uncommon.  We have heard stories (more like nightmares) from our tenants about similar experiences with former landlords.  Thus, you should always ask for a copy of the standard lease agreement early in your negotiations.

And we think it is understood that you actually need to read the lease agreement.  And we mean every word of every paragraph in every section.  Landlords are sophisticated parties and each word of each provision is in the lease for a reason.  If you do not understand what something means, ASK!  And if the landlord is of no help, you might need to retain representation, whether it be an attorney or real estate professional.  Remember, your lease agreement is what will govern the relationship between you, as the tenant, and your landlord.  So if the landlord told you something that is not reflected in the lease, you need to address it before you sign.

     3.  May we take pictures of the spaces we tour?

Ask if you can take pictures of the office spaces or warehouse spaces you tour.  Not all landlords will allow you to take pictures (for various reasons).  We typically allow our prospective tenants to take as many pictures as they want (as long as we are not in the picture!).  Typically a prospective tenant only sends a representative to tour the space.  Pictures allow everyone in the office to review and brainstorm. 

And you never know what you might spot when reviewing the pictures.  People often wear blinders when they are touring a space that they have instantly fallen in love with.  Pictures allow you to take a step back and review them a day later, week later, month later, etc.  The pictures may show spots in the carpet you did not notice, stains in the ceiling tiles indicating a leak of some sort, you name it.  Not to mention, you will be able to do better space planning if you have pictures that show where electrical outlets, doors, windows, etc. are located.

     4.  How long has this space been vacant?

This question might give you some leverage in negotiations.  A landlord might be unwilling to budge on the monthly rent if a property is fresh on the market.  However, an office space or warehouse space that has been vacant for several months (or years for that matter) might go for less than the asking price.  Landlords like to keep spaces occupied because vacancies cost them money.  You might be able to squeeze out a better deal with this knowledge.

     5.  What is the process for repairs?

This is a bit of a loaded question.  First, it depends on whether the tenant or landlord is responsible for the cost of the repair.  Second, even if the tenant is responsible for the cost, the landlord might be responsible for performing the repair.  For the purpose of this question, let’s assume it is the landlord who is responsible for the cost and performing the repair for the HVAC system.  Your A/C or heat stopped working, (and trust us, the HVAC issues always happen in the hottest or coldest part of the year) and you call your landlord to notify them of the issue.

Does a form need to be submitted?  Does someone have to come take a look before making a call to a repairman?  How long until a representative is able to look at the problem?  How long until you, as the tenant, can call a repairman and bill it back to the landlord?  Basically, these questions all boil down to “How long until the HVAC is fixed!?”

Find out about the process for repairs.  While the lease will likely detail who is responsible for a repair, it will probably only give you a timeframe for how soon a repair must be accomplished if the landlord is responsible.  And when it is 90 degrees outside and your A/C stopped working, you want it fixed ASAP!

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This is by no means an exhaustive list of questions that should be asked.  Every space in each location is different.  Different properties demand different questions.  One property by a railroad track might spur (pardon the pun) a question as to how often the trains run.  You might need to ask about noise levels near a manufacturing facility, fumes near a chemical plant, traffic near a major highway or flooding in a coastal area.  The list literally goes on and on.

As landlords, we would much rather a prospective tenant ask us one hundred questions than zero.  It shows that you are serious as a prospect and that you have done your homework.  We also like our tenants to know what to expect so that there are no surprises after a lease has been signed.  And like we mentioned in the beginning, there are no stupid questions.  If you think a question is important, we want to answer it for you and your landlord should too.

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Please feel free to leave comments.  We promise to read them all.  You can also email us with any questions/comments at leasing@seawaybusinesspark.com or visit our website at www.seawaybusinesspark.com.  We provide office space for rent and office/warehouse space for rent in Gulfport, Mississippi.  Please keep us in mind if you are looking for a space in our area.

Think Outside the Box to Succeed in #CRE

Think Outside the Box to Succeed in #CRE

Image courtesy of Master isolated images at FreeDigitalPhotos.net

Thinking outside the box is a crucial skill for any #CRE professional.  This holds true for landlords, tenants and brokers alike.  There is not a playbook for every situation.  Sometimes, it pays to attack a real estate deal from a different angle.  And at times, all that is required is one crucial skill: listening.

Let us give an example.  In late 2013, our office received a call from a prospect looking for office space.  They had outgrown their space and were looking to expand their footprint by about 20-30%.

The main problem (for us and other landlords alike) was their existing landlord was giving them a pretty sweet deal.  The landlord was allowing them to extend their lease on an annual basis and was not increasing the rent.  They were even allowed to cancel the lease at any time, giving them no immediate incentive to move out because if they found a new location in the middle of their term, they could give notice to vacate.  Their rent had not increased since they moved in several years before.  Thus, the tenant was anchored in their thinking that the rental rate was comparable to the rest of the market (it was not).  They also felt that because they only needed 20-30% more space, their rental rate should likewise increase by about 20-30%.

                      

Like we said, this tenant was getting a really sweet deal and was not going to be rushed into signing a new lease agreement.

When this prospect first contacted us, we had an office space that had just become available.  The space was a little bit larger than they required.  However, trying to make the deal work to get started with a new tenant, we priced the office space so that the rental rate was comparable with some of our smaller spaces.  The prospect said, “Thanks, but no thanks.”  That price was way more than they were willing to pay.

This was also not a small tenant.  They had been in business in our local area for about 20 years and had an established, reputable business.  And they were not strapped for cash; in fact, they had plenty of cash reserves to move to any office space that they wanted.

After several months, we heard from this same prospect again.  The previous space we offered was leased at the time, and we had a smaller space available.  We went through the same ordeal.  We priced it aggressively and were told, once again, “Thanks, but no thanks.”

Another six months passed by, and wouldn’t you know it, we heard from the prospect a third time!  At this point, the business owner realized that their current rent was a good deal but they were still unwilling to pay much more than their current rental rate.  We told them our vacancy and applicable rates.  “Thanks, but no thanks.”

                                                                                                               

This was very frustrating for our company.  We felt that we had done everything we could to make the deal work.  We had showed them a few vacancies over a 12 month period and priced each office space very aggressively.  Again, we wanted to get started with this new tenant because they were a good fit for our business park.  However, we could not come to an agreement.  We told ourselves: That’s just business; not every deal is going to work.

Then, one of the members of our team got creative.  We went through their space requirements.  This was not a tenant that needed any kind of fancy office or any type of storefront.  In fact, this was part of the reason that our office spaces were priced too high (our offices are in brick buildings and have a storefront look to them).  Rarely did customers come to the tenant’s office.  And the occasional customer that came by was not going to care what the outside (or inside for that matter) of any office space looked like.

We had an office/warehouse that pretty much met their office requirements exactly.  Sure, it was 50% office and 50% warehouse, but we thought it might work well for them because they could use the warehouse as storage and maximize use of the office space.  Our office called and proposed this scenario.  The business owner came out and fell in love with the space.  This was a cost-effective manner to get them into our business park because our office/warehouse space is commonly less per square foot than pure office space.  This was the ultimate win-win scenario.  And it all came from listening to the space requirements, the business type and clientele.

One month later, a new long term lease was signed.  The warehouse is being used as a break area and for file storage.  The office is being fully utilized and gave the tenant some room for growth.  Win-win.

You see, the tenant told us they wanted office space so we only thought about our office buildings.  We had to think outside to box and really listen to their space needs to come up with this solution.  Sure, this will not work for every tenant looking for office space (or even most tenants looking for office space).  Most tenants for office space need a presentable office for clients.  They want and need the brick and/or glass building.  But this tenant was able to go into an office/warehouse and solve all of their space needs at a rental rate that suited their needs.

Conclusion

Every situation does not have a script.  Most leases are pretty straightforward: Tenant needs office or warehouse space.  Landlord has office or warehouse space.  Tenant and landlord come to terms and sign a lease agreement.

However, not all transactions are cut and dry.  Sometimes, you must get away from your normal line of thinking.  We cannot provide a list of different items to be mindful of when thinking outside the box (after all, then it would not be thinking outside the box).  For the above example, it involved listening to our tenant’s wish list for space requirements and coming up with a unique idea.  If you get to a standstill or are unable to come to terms with your tenant or landlord, take a step back.  Try to attack the problem from different angles.  You might be surprised at what will work for both parties involved.

You can email us with any questions or comments at leasing@seawaybusinesspark.com.  As a reminder, we provide office space and office/warehouse space in Gulfport, Mississippi.  For more information, visit our website at www.seawaybusinesspark.com or call us at (228) 575-7731.

Stop Saying This To Prospective Landlords!

Stop Saying This To Prospective Landlords!

Image courtesy of Idea go at FreeDigitalPhotos.net

We receive a lot of prospective tenant phone calls.  Most prospects ask the same basic question (“How much is the rent?!”).  Before we are able to quote a rate for an office space or a warehouse space, we have to ask a series of questions; this helps us determine which space will be appropriate for our client so that we can give an intelligent quote.

One question that we always ask is what length of lease term a client is seeking. 

The worst response you can give goes something like this: “I don’t want to sign anything longer than month-to-month because I am going to outgrow my space in 3-6 months.”

Let us explain why your prospective landlord is no longer interested.

First, let’s assume that your business has a track record of expansion.  You are in a growth phase, and you truly cannot commit to a space for longer than 3 months because you outgrew your last couple of spaces in that same time frame.  A landlord is not going to want to lease you a space for 3 months!

During that span of time, several other long term tenants might have leased the space and could not wait 3 months to start their lease term.  Sure, you will find a landlord who will lease to you for a short term and jack the price up (and we mean WAY up!), but if your business is in a growth phase, you probably cannot afford to be paying an above-market rental rate.

Signing a month-to-month or short term lease is also bad for your business.  Let’s use the above example where your business can only sign a 3 month lease because it has been growing nonstop.  After 3 months, your growth has started to taper off and you wish to sign another 3 month term in your current location.  You reach out to your landlord for renewal only to find out the landlord has no intention of renewing your lease.  The landlord signed a long term lease and you have 2 weeks to pack up your things and find a new space.  Is that the situation you want for your growing business?

More often than not, when we hear this response, it comes from a business without any sort of track record.  These businesses are usually startups who think that business is going to boom right off the bat.  Businesses take time to grow.  Your projections might show sales increasing by 50% every 3 months, but they are only projections.  Capturing market share does not happen overnight for most businesses.

We understand that you may also be concerned about whether you have a viable business.  And a month-to-month lease sounds like a great way to test the market.  We certainly respect a prospective tenant for being honest about their situation.  However, a month-to-month lease still ties up a space, and while it is a quick fix for a vacancy, it is not a good long term solution.  Sure, we could give notice that the month-to-month tenant has to vacate after the next month like the example given above, but it is just not worth the headache.

Conclusion

We do not take calls seriously when a prospect says they can only sign a short term lease because more than likely, we know the business owner either (1) is wearing blinders about how great business will be, or (2) cannot commit beyond a couple of months because the business is a startup.  Expansion takes time and effort, and you are not going to magically need double the space in 3-6 months.  And again, even if your business does need to double in size after 3 months, you are probably not a good fit for any of our properties (and we are not the only landlords who think so).

Please feel free to leave questions and/or comments.  We read all of them.  Feel free to email us at leasing@seawaybusinesspark.com.  We provide office space for rent and office/warehouse space for rent in Gulfport, Mississippi.  If you need commercial real estate space in our area, please give us a call at (228) 575-7731 or visit our website at www.seawaybusinesspark.com.

A Blog By a Landlord in Gulfport, Mississippi

Seaway Business Park Blog - A Blog By a Landlord in Gulfport, Mississippi

Welcome!

Welcome to the Seaway Business Park blog, a commercial real estate blog written by a landlord in Gulfport, Mississippi!  We have considered publishing content for quite some time now, and everything we read (in other blogs) says there is no time like the present to dive right in.  This initial blog post will set the stage for the who, what, when, where and why; later blog posts will actually deliver content you may (or may not) find relevant.  So, without further ado…

…we will start off with what to expect from our blog, and, equally as important, what not to expect from our blog.

Content/Perceived Audience

In a nutshell, the content we produce will be…anything and everything we find relevant!  As mentioned previously, this blog is written by a landlord.  We will publish content we think tenants, prospects and landlords alike might find relevant.  Everything from hidden items a prospect might want to look for when touring a space (hint: ceiling tiles for roof/HVAC leaks!) to steps you need to go through when signing a new lease will be detailed.

We are not brokers (but frequently work with them).  As such, we do not have dozens (or hundreds) of properties to manage.  This allows us to be meticulous about every detail of our properties.  This blog will be no different.  We have learned a lot over the years and are excited to share some of it with you.

Most blogs that we read are written from the perspective of a broker.  As a landlord, we are the sole decision makers for one half of the lease transaction.  While we are not the only landlords by a long shot, we do not typically read content from the viewpoint of a landlord.  This blog will hopefully plug a small hole in this void. 

Content will be about commercial real estate, as opposed to residential.  Some of the same analysis and tips can be applied to either, but we are not residential real estate professionals.

Tone

This blog will be written in plain talk.  A working knowledge of commercial real estate terminology is not required.  The only acronym you need to know for future blog posts is CRE (because typing out and reading commercial real estate just takes too long).  We sometimes use parentheticals; it’s just our style of writing.  In addition to helping break up the monotony of a boring sentence (like so – see told ya!), it helps to add little tidbits of information (and sarcasm).

Frequency

We will publish content 1-2 times a month.  As mentioned before, we are a private company and when we get busy, our normal job duties have to take priority.  (After all, it’s what gives us our content!)

Length

It is hard to predict with certainty what to expect from each and every blog post.  Some posts like market updates will be on the shorter side, because there is a wealth of information on that topic, and we are by no means an expert on the broad market.  Items like “questions to ask your prospective landlord” will tend to be longer.  And yes, we realize that we did not give a clear answer or direction to our self-chosen sub-topic.  (It should come as no surprise that one of the authors of this blog is an attorney!)

Voice

We will write this blog in the first person, as if the company itself is doing the talking.  This is a bit unconventional; we know that a company cannot technically have a voice, and as an inanimate object, should not use pronouns such as “we” and “our.”  However, this blog is a product of more than one single person, and as such, will be written in the first person voice.  If it helps, imagine a group of people in a conference room with a laptop typing this content (not that far from the truth).

Influence

As publishers of content (as of the publishing of this post, officially), we must also absorb high quality content.  We learn from the best and try to read as much as possible.  Our two main influences are from different ends of the spectrum, one being in CRE and the other being in sports.  One is Bill Simmons of Grantland, and the other is Duke Long of the Duke Long Agency.  Maybe in a later blog post, we will flesh out why and how these two people have been a large influence on what we publish.

Conclusion

We sincerely hope you enjoy our blog and content.  We will close all of our blog posts with a reminder of what it is that we actually do.  It will always be at the end since we realize that the vast majority of people are not in the market for CRE in Gulfport, Mississippi.  So…if the need arises for office space or office/warehouse space on the Mississippi Gulf Coast, please give us a call at (228) 575-7731, email us at leasing@seawaybusinesspark.com or visit our website at http://www.seawaybusinesspark.com.