Is Your Physical Space
Helping or Hurting Your
Today, dozens of colleges in the Minneapolis/St Paul metropolitan area are pumping out graduates eager to find jobs as well as a great company to work for. While you might believe you have the right space to attract the best candidates, it might be a good time to step back and reflect on what you have to offer and what these graduates want so that when this fresh batch of interviewees sit down to talk, you know what your company’s commercial real estate space says about your company.
Research shows, the current generation of graduates expect more from the companies they work for than generations of the past. This group values freedom, independence, and creative space. They view their office as a second home and they want to enjoy going there every single day. With the unemployment rate hovering around 3% and the knowledge that the average person will likely change jobs 12 times in their careers, you better believe your employees will find the work environment they are looking for if your company doesn’t have it.
Paramount recently represented a food distribution company, where the president expressed a desire for space that reflected the company’s culture. After considering several spaces that would have resulted in lower occupancy costs, leadership ultimately selected space that was more expensive but had amenities including a roof top patio overlooking the city that would allow their team to gather and test their product. For this company, it was critical that employees would interact with each other and their product on a regular basis and it was worth the extra expense to have a space that could support an outdoor grill area to make it happen.
So how do you make your space reflect your culture? Location, architecture, physical layout, furniture design, color, work spaces, and amenities are all aspects that can reflect your company culture. Today’s job seekers do consider these physical attributes when deciding where they want to work every day. So take some time and think to yourself; “does this space make me excited about working here? Does it embody the culture of the company? Is it functional? What aspects of your company’s space can be changed and altered to better reflect your culture and company goals? Some ideas you might consider: Health & sports enthusiasts might cause you to look for space close to biking trails, space with fitness facilities and showers, you might even add bike storage options. If you’re a creative marketing company you might try looking for unique architecture or a visually appealing space lay out. Maybe all you need to do is add a few tap beers, an air hockey table, and a flat screen TV to up the “fun” factor. Whatever you do, make sure you are consistent with your message regarding your company culture and appeal to the types of people you want to work for you.
Does Your Company Need New Space?
Is Your Physical Space
Check out the June 2018 edition of Paramount’s Insite Newsletter.
You will find interesting articles related to Property Management, find out if your space helps or hurts your hiring efforts, read about a recent transaction with Warners’ Stellian, and check out upcoming events around the Twin Cities.
Call Paramount for all your
commercial real estate needs today.
REAL ESTATE TIP OF THE WEEK: SBA 504 LOANS
SBA 504 loans are now available with a 35-year-amortization. Previously, these small business financing tools offered 10-year and 20-year amortization schedules. This longer amortization will reduce monthly payments and help small businesses manage cash flow.
The SBA 504 program has long been a staple of real estate finance due to its lower 10% borrower equity requirement. The loan structured is 10% equity from the borrower, 50% from a bank, and 40% from the SBA. The SBA portion is funded by issuance of a 10-year or 20-year debenture, now also a 25-year debenture, with fixed rates. Bank interest rates typically fluctuate based on credit quality and term.
The longer 25-year amortization has been in demand for many years, and, finally, the SBA has delivered. Industry experts believe this will become the most popular answer for real estate financing. Talk to your banker or call us for more information.
For more information contact: (952) 854-8290
Check out our website: www.paramountre.com
PRESS RELEASE: Young Represents Warners’ Stellian in Building Purchase
Minneapolis, Minnesota – Paramount Real Estate Corporation’s, John Young, Vice President of Sales and Leasing, represented Warners’ Stellian in their purchase of an 80,000 square foot industrial building in Minneapolis at 2601 Broadway Street Northeast. The building will house a new retail store and will be a main distribution point for various appliances sold by the company. Mr. Young helped the client identify the building, negotiate for its purchase, secure approval from Minneapolis’ Planning Commission, and guide the company through its due diligence.
The building was home to Boyer Ford Trucks, who moved to another location in Minneapolis. Boyer did not need the large warehouse and wanted to right-size its operation. The building is located just east of Stinson Boulevard on the north side of Broadway. It has great visibility from I-35W and easy access from Stinson Boulevard and Industrial Boulevard.
Warners’ Stellian is a 60-year old family operated business specializing in the sale of appliance. Currently, they have nine retail locations across the Twin Cities. They commit to providing a high level of customer service. Being environmentally friendly is also a priority. They recycle all appliance packaging and utilize more fuel efficient vehicles that automatically shut off after five minutes of idle.
REAL ESTATE TIP: CHOOSING THE RIGHT COMMERCIAL REAL ESTATE BROKER
Would you buy a car from a boat deal? Let your barber clean your teeth? Perform your own surgery? Of course you wouldn’t. You want the people who you work with to be professionals and experts in what they do. So why would you go into the commercial real estate market without professional help?
Commercial real estate brokers are trained and licensed professionals. They all have geographic expertise, specific real estate product knowledge, and different negotiating styles. When you are ready to go out and find property to lease, buy, sell, or invest in, your best bet is to interview a number of brokers to find the best fit for you.
Here are some questions you should ask real estate professionals to clearly understand if they can add value to your situation:
What product type do you specialize in?
What is the geographic area you focus in?
How long have you worked on this type of transaction?
Can you tell me about another client with similar needs that you helped in the past?
Do you work alone or with a team?
What is your communication style?
Do your homework and make sure you have a broker who knows the type of space you are looking for inside and out.
“Isn’t it cheaper to lease or buy space on my own?”
People always ask me “Isn’t it cheaper to lease or buy space on my own?” No, is the answer most of the time. Any broker you interview should be open and transparent with how they will collect their fee. The industry has a standard commission for each product type, so make sure the brokers you are interviewing all tell you the same thing. Typically, the broker commission is paid by the landlord or seller when leasing or buying an owner/user building. In addition, your trained professional will help you avoid pitfalls. These could include; paying over market rents, getting locked into a larger term than you want, and even having to pay to build-out new space yourself.
Do yourself a favor and let a professional help you with your space needs. It will save you time, worry, and in the end, MONEY.
REAL ESTATE TIP OF THE WEEK: GLOBAL VIEW OF REAL ESTATE
Sure, it is easy to look only at the total amount of real estate you want to own or lease. It is also easy to only look at the economics associated with your choice. However, before one even looks at real estate options, a strategic review is necessary. You want to ensure that your real estate and business goals can be aligned.
Certainly, economics (costs) are PARAMOUNT, but what other aspects of your occupied real estate significantly impact your business operations? For example; productivity, efficiency, growth, access to labor, and ability to attract and retain top talent are all influenced by real estate decisions. Attracting and retaining top talent, a key concern for most businesses, can be enhanced or diminished by the wrong real estate strategy. Employees and visitors want amenities such as restaurants, walking paths, public transportation, and public spaces.
There can be a delicate balance between the human resource aspects of real estate and the hard economics of the bottom line. A clear and well-articulated strategy makes this balancing act much easier when looking at real estate options.
For more information visit out website: www.paramountre.com
MINNEAPOLIS, MN. Paramount Real Estate Corp | TCN Worldwide promotes Lisa Borene to Vice President of Property Management Services. Lisa is responsible for providing asset and property management services for the Paramount property management portfolio. Paramount management services include third party management of office, industrial, retail and flex properties and receivership services throughout the Twin Cities area.
“Lisa is highly respected and trusted by our property owners for her responsive and creative problem solving, understanding of critical operational issues, and sound real estate advice. Lisa is a highly valued member of the Paramount team”, Principal Fred Hedberg said.
Lisa has been with Paramount as a Property Manager for 10 years. Her property management efforts focus on providing exceptional service to tenants, contract negotiations, and budgeting, as well as implementing and improving tenant customer services.
Lisa has had an extensive career in commercial real estate. Prior to working at Paramount, Lisa was employed by Regis Corporation and Caribou Coffee managing lease locations across the country. Lisa brings years of experience, creativity, property knowledge, and a “can do” attitude to her tenants and property owners making her one of the Twin Cities’ premier property managers.
Paramount Real Estate Corporation is a Minneapolis/St. Paul based commercial real estate company specializing in representation, consultation, and property management services for individuals, corporations and institutional clients. Paramount provides creative solutions to complex commercial real estate transactions through knowledge, experience and innovation.
MINNEAPOLIS, MN. Paramount Real Estate Corp | TCN Worldwide named Nancy Powell, Vice President, Paramount’s “Broker of the Year for 2017”.
“Nancy is a hardworking energetic professional. She is highly trusted and respected by her clients for great communication and creative negotiation skills”, Principal Fred Hedberg said.
Nancy joined Paramount Real Estate | TCN Worldwide in 2006. Her brokerage activity is focused on advising office and industrial building owners and corporations on how to maximize the return on their commercial real estate investment. Nancy executes the plan that best achieves her client’s business objectives. Through Paramount’s TCN Worldwide platform, she is able to provide brokerage services both locally and nationally.
Prior to working at Paramount, Nancy was employed by the Best Buy as a Real Estate Manager focusing her efforts on identifying and negotiating new stores as they expand into new markets.