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
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?
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
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.