Paramount recently represented the Owner of 1000 West 94th Street in Bloomington. The building is approximately 5,000 square feet, with about one-third of an acre of fenced and paved outdoor storage. The client has worked with the Paramount Team for 20+ years. The relationship began with one transaction in the late 1980s, and has grown substantially since that first transaction. A mutual trust was developed during the first lease negotiation through open communication, honesty, and truly working in the client’s best interests. Over the last 20+ years, many more transactions have reinforced the trust that is the foundation of the relationship.
Too often commercial real estate services are commoditized. Excellent customer service is a lost art that few providers genuinely offer. Business owners generally have multiple projects underway at once. The ability to retain a trusted advisor to handle all real estate related tasks can free up an immense amount of time for busy decision makers. This allows them to focus on running the business. That is not to say that the business owner is uninvolved, on the contrary; constant communication between the client and the advisor is the most efficient way to build trust and create a successful conclusion to a project.
Paramount prides itself on its customer service. The team of Paramount professionals have built a brand with a reputation that Paramount has the knowledge, integrity, expertise, and communication skills to not only satisfy their clients, but go beyond to deliver extraordinary results. Paramount works hard for our clients, large and small, and seeks to obtain relationships built to last.
Written by: Joseph Schultz, East Team Associate
For firms whose growth is uncertain . . . or . . . perhaps a firm that is opening a new office or starting a business . . . subleasing space can be a sound alternative. However, just as with any real estate transaction, caution is always in order.
Get to Know The Sublessor:
First, it helps to understand why the original tenant wants to sublease. Is their business struggling? Have they lost a number of key employees? Did they overestimate their future growth? Or perhaps they are reconfiguring their space into a more collaborative environment and find they don’t need all of the space. What are their future plans? When does the prime lease expire? All of this is key since subtenants must comply with the terms of the prime lease.
Second, most sublease space is leased in an “as is” condition, meaning that the prime tenant will provide no dollars for any changes to the space. Therefore, review the language of the lease to see what restrictions might apply to any alterations. Generally, the prime landlord’s consent and approval is mandatory. Also, if you plan to make any significant changes, consult the prime landlord. Changes that actually affect the configuration or general function of the space can cause problems in re-letting the space once you move out.
Have an Real Estate Professional Review the Lease:
Lastly, ensure that the terms of the sublease document are sound and complete and that you, as the subtenant, are protected in the event of some kind of default by the sub-landlord.
If we can offer any advice or assist in any way, please feel free to contact Paramount. Proper preparation before moving forward is essential to any successful real estate transaction.
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service and solutions, call Paramount.
Have you purchased a commercial or industrial building lately? If so, then you know the Minnesota Pollution Control Agency is aggressively regulating vapors that may seep into buildings. Cracks in concrete floors, holes in the foundations, and just plain porous concrete can be conduits for harmful chemical vapors that may exist from contamination on your property or even the neighbor’s property.
Environmental consultants are recommending vapor testing for sites that are near known
groundwater and soil contamination.
If the tests are positive, a second round of testing may be completed before designing a treatment system. Typical treatments include creating negative pressure under the floor slab and venting it out the roof. This can be expensive, $1.00-$2.00 per building square foot. As you may know, when the MPCA is concerned, so are the banks. We have worked on four transactions in the last two years that required vapor treatment. It did not stop the transactions, but the process takes time, effort, and attention to detail in order to be successful.
Need real estate advice. Call Paramount.
TRUSTED. DEDICATED. EXPERIENCED.
In order for a building to earn LEED Certification, it must meet certain criteria and goals within the following categories:
Location and Transportation: How close is the project to mass transit?
Materials and Resources: Will the project use locally sourced, sustainable products?
Water Efficiency: To what extent will the project reduce potable water usage?
Energy and Atmosphere: How will the project improve energy performance and indoor air quality?
Sustainable Site: To what extent will the project utilize nearby natural resources and ecosystems that can naturally take part of the design, minimizing environmental pollution?
Regional Priority Credits: This addresses particular concerns based on project location
Innovation: Any idea that is not covered under the main LEED areas
Each of these respective categories contains a series of opportunities to earn credits. The project earns points when it uses and integrates these opportunities. The more points the project earns, the more sustainable is the building. Depending on the number of points gained, the project can then earn certification as a certified building or as a silver, gold or platinum building.
Benefits of a LEED Certified building are many:
Reduced use of energy and water
Reduced operation and maintenance costs
Reduced construction waste during the construction process
Increased indoor air quality
Usage of recycled materials
Increased employee performance, satisfaction and retention
Need advice on LEED. Call Paramount.
TRUSTED. DEDICATED. EXPERIENCED.
Qualifying your real estate needs, researching, locating and negotiating a new lease or purchase of a property is by no means the end of the relocation process for most companies.
One of the most important and costly items within relocating a business operation is the actual move itself. This activity requires diligent planning, multiple bids for competitive pricing, knowledge related to construction, furniture systems, Tel-com and IT, relocation/moving service providers, and many other move related items. This is where a seasoned project manager can add tremendous value saving time and money, keeping everything on schedule and handling any problems as they arise. Why risk exposure to additional costs, disruptions or unforeseen delays and headaches, not to mention the stress the inside person who was tossed the project manager hat will experience. Interview and select a Project Manager as part of the initial space planning process and the move experience (and costs), will be well worth the cost of a Project Manager.
TRUSTED. DEDICATED. EXPERIENCED.
Sale lease-backs can be a great option for your business. While many business owners feel that building ownership is right for them, a sale lease-back can provide financially-strapped companies with the capital injection they need. The transaction is simple: an owner/user sells the building to a third party investor, then leases the building back, often long-term. Equity in a building will generally see an appreciation equal to that of inflation (1-2%/year). A sale lease-back allows for a much higher return on equity by reinvesting the cash from the building sale back into the business itself; where owners can see a return much higher than 2%.
Want more information on sale lease-backs?