Commercial Real Estate Closing Checklist

One of the main reasons that a commercial property transaction might fall through when it is near to closing is because one of the parties has forgotten an important aspect of the transaction that needs to be considered before the relevant documents can be signed.

With that in mind we have created a small checklist of things that you need to keep in mind when closing on a commercial real estate property, to make sure that you cover all of the bases.

Acquisition Documents

You need to ensure that all of the documents relating to the purchase are in place and ready. This includes all of the following:

• A signed letter of intent

• Any and all drafts of the purchase contract

• Any information relating to your legal counsel

• Access agreements

• Any client or portfolio manager authorisation that is required

• A fully completed purchase contract, that will be delivered into escrow

• Documentation for the initial cash deposits for the purchase

• Arranging for any bank accounts required to be set up

Title Matters

Title and zoning issues are also a high priority, so make sure you have the following:

• You have selected a title company whom you can send the seller’s title commitment to

• Have an ALTA survey carried out and ensure you have the right documentation

• Verify that all relevant leases and assets are in the seller’s name

Tenant Issues

If you are buying an apartment building or any form of commercial property where other businesses may become tenants and lease out space, you need to have all of the following:

• A current certified rent roll

• A review of all current leases and the related documentation for each.

• Your legal counsel should look over these leases and compare to the current review

• You need to look over all current tenant files

• Resolve any outstanding issues regarding lease

• Receive all reports relating to the tenants, including sales and receivables reports

• Transfer all tenant security deposits

• Review the tenant credit and payment history

• Prepare and sign the tenant Estoppel Certificates

• Final check on all documentation

Financial

The transfer of all relevant financial information is extremely important as well. This includes:

• Copies of any historical or proforma financial information

• Copies of utility bills

• Most recent tax statements

• An expense list for all expenses currently operating under the property

Litigation

You will need to consider the possibility that there is any current action against the property or the existing owners and take that into consideration.

Insurance

Getting insurance for the building is crucial, so it is important to get a quote as early into the proceedings as possible. Some of this may be covered by the Property Management Agreement.

Physical Property Inspection

Before any transaction is completed a physical property inspection must be carried out by the buyer to ensure that they are getting everything that they expect from the property.

Final Closing Documentation

To complete the transaction all of the relevant financial and legal documentation must be completed and handed in on time and be completely accurate.

Steps to Take to Find a Commercial Lendor

When you are looking to finance your next commercial real estate project, you need to find a commercial lender. Why, you might ask? You need someone on your side who is an expert in the nuances of the kinds of loans that are a part of commercial real estate. But finding one can be kind of tricky. Here are a few tips to help you find a great commercial lender.

Commercial banks and lenders often specialize in the larger companies, so finding ones that specialize in small businesses is often harder. The good news is, especially since 2012, small business lending has been on the rise.

One way to find a small business friendly lender is to look for a smaller lender. Community-based banks and credit unions are often much more likely to loan to a local business. Why? It’s partly based on their ability to know you and your business better than the big guys can. It’s also based on their willingness to support their local economy by investing in it. Some local banks are also participants in the Small Business Credit Initiative which is a federal program to help give small businesses a boost.

Another way to get a commercial loan is to find a lender who offers loans backed by the Small Business Administration. These loans are perfect when you don’t have the criteria that other loans would require for evaluating your creditworthiness. The SBA backs the loans, giving lenders the ability to loan to you without fear. You can either check to see if the lender lists that it is a Preferred SBA Lender or you can consult the SBA for a list of local lenders who are a part of the program.

If you can, find out who will actually be doing the loan evaluation and making the final decision, whether it is the bank itself or if they send off your loan to an outside company. This can change who you want to work with if you intend to work locally.

Once you do find a lender you like and are willing to work with, do your research on the company. You will be with them for several years while you pay off the loan, so you want to be sure you can have a good relationship with them. Check the company track record and make sure that they are likely to be around in 10 -15 years when your loan matures. You can also check to see if the company offers annual financial reviews to see if there are other financial products that it might offer you that can be of benefit.

The Commercial Finance Association also offers you some advice and help finding a commercial lender. Their service is free and you can do your search by what kind of loan you are seeking, the amount you want to finance, and where you are. The CFA will then give you options for a lender who will match what you are looking for.

If you can, think about all of this and create your strategy before you actually need the loan. It will make things go more smoothly and faster when the time comes.

Toilet Partitioning For Commercial Construction

A lot of different companies have to come together when designing and making Commercial Buildings. They all have to be able to work together and around one another to get the job done right and on time. It is a great responsibility for the Construction Manager to get everyone in at the right time and finish at the right time.

Commercial buildings have lots of different components within their structure. All of them have to tie in with one another to make the whole building work. One such parts are the Toilets or Washrooms.

It is essential to have the very best washrooms in a Commercial Building because of the frequency of use, the ware and tear and because you want keep the people who use your building happy. The best way to do this is to have Toilet Partitions (or cubicles) as they are a cost and time effective product.

What are Toilet Cubicles?

Instead of designing individual rooms to house the toilets commercial building companies have come up with a solution. Make a Partitioning system that is easily installed and disassembled. You don’t need to have floor to ceiling walls which keeps material cost down and using Laminated MDF or Ply wood, they are easy to clean. Better yet if using Compact Laminate, a 13mm thick piece of laminate, then not only will the structure be very strong, it will also be waterproof. This is essential when dealing with Shower Cubicles or washdown situations.

What makes up Toilet Partitions?

Toilet Partitions are divided up into 4 essential parts.

1. The divider panels. These are the walls that divide up each toilet cubicle.

2. The front panel. This panel sit in front of the divider panel at 90Ës angle. It is used to secure the door and the wall.

3. The doors. These are what you close after you enter the cubicle to ensure privacy.

4 The hardware. Locks, hinges, pedestals, extrusion and head rail. Locks are used when door is shut so other people cannot enter while you are occupied. Hinges are used on the door so that it can swing shut. Pedestals are used to lift the divider panels, front panels and doors off the ground (they are usually fitted to the front panel). And the extrusion and head rail are used to give the structure strength and rigidity.

How it all works.

Companies can buy Toilet or Shower Partitioning systems off local businesses who supply them. There is also online businesses that can supply companies with the manufactured goods and installation instructions so they can get contractors to install it for them.

Once put together the cubicles form a strong, durable and cost effective way to manage your Commercial Buildings washrooms. They can be easily replaced or fixed if broken but will more than likely stand the test of time.

Architects will specify certain businesses to supply the construction company with there goods or services under a form of a tender. This basically means that businesses will compete to win contracts with construction companies to use there goods or services in there Commercial Building construction.

Once the contract has been won and finalized the construction company can choose what colour, system and material they would like to use in there washroom or toilet. There are many different systems available on the market and choosing one to fit the needs of your bathroom is essential. The Toilet Cubicle supplier will then manufacture the system you have chosen and can then install the system into your building. That is how Toilet Partitioning and Shower Cubicles work in Commercial Buildings.

Green Buildings Are the Wave of New Commercial Buildings – Green Homes and Renovations Save Money

Green buildings are the wave of new building improvements. Green homes, home renovations and products also save money! It is my opinion that most people may be uninformed about the many benefits in green homes,green home renovations and eco-friendly products and practices.

Building construction is evolving and becoming more in-line, in America, with how buildings are constructed overseas. It is our responsibility to build our homes and office buildings in agreement and respect for our planet.

Environmental consciousness is a part of our perceived agreement to be aware of planetary and environmental health in consciousness to satisfy or hopefully,supersede our human responsibility by impacting the factors of our responsibility of our responsibility in the equation, for a healthier planet, while living in harmony with nature and the elements.

Collective planetary preservation is a gain for attaining an advantageous edge over the years of work that is needed to complete our life mission of global building change- beneficial towards a healthier planet for man-kind, immediately and intensively required for the betterment of nature, the elements,and humanity.

Building construction is evolving and becoming more in-line, in America, with how buildings are constructed overseas.

For example, the interior walls made of steel and concrete, in lieu of expensive wood, thus saving our trees and rainforests, by protecting the ecology and the surrounding wildlife that calls these resources home. Natural products that flourish in other parts of the country can also be entertained for more environmentally-friendly solutions to the human appetite for expansion of buildings and homes..

Products such as cotton fiber, Icynene foam and cellulose are fast gaining recognition,application and appreciation in the construction industry. The most recognizable product is cotton. Ever noticed the rising cost of cotton? For an important reason:it is quickly being sought by home builders and home renovators. The cotton material used will be made from recycled batted material; treated to be fire-proof.

Certain building products offer increased durability and help in sealing the building envelope. It is estimated that the lifespan of metal roofing is more than 50 years. Concrete and copper roofing products are expected to last a lifetime.

In commercial buildings, innovation can also help cut cost and have many benefits.

A building can be rated platinum, silver, or gold based on performance via LEED checklist (LEED stands for is the Leadership in Energy and environmental Design).

The rating is a point system based on-

*building materials;

*amount of natural lighting

*heat/cool efficiency

*water usage.

*Lot selection;- positioning of the home reduces the energy usage of the home

* Making even more changes by choosing to seal the building properly-

Sealing the building envelope; Reduces air leakage- into and out of the home.

How do you seal your building envelope? You can contribute by sealing the duct system, fireplaces, plumbing penetrations,doors,windows, fans, vents and electrical outlets. Holes need to be sealed around all penetrations including gaps being filled too! Sealing is saving and using less to heat or cool your area with improved sealing and outlet options for more energy efficiency as the goal.

Many public buildings, homes and universities are following suit and learning that the benefits of the initial cost of materials may in-fact pay for itself as the lower cost of building,heating and cooling energy costs are decreased due to the factors listed above. ** Another benefit is a healthy home- a home built to withstand the test of time.

**The U.S. Green Building Council estimates new savings of $50-$65 per square inch for positively constructed green buildings. In the area of the country,where I live, one university has been a standout, at least in the initial process, by building a combined heat and power plant on campus that will produce a third of the electricity needed on campus using natural gas – saving about $2.5 million a year. Here in central Florida, as the nickname and initials suggest, UCF- University of Central Florida in Orlando, Florida or UCF- You can’t finish), is far from slowing down their aggressive construction schedule. Future projects are always entertained, ongoing, or in process. What makes U.C.F. different from other universities in the state, per Ms. Lee Kernek, said,”that the plant will be designed, owned and operated by the university.” Ms. Lee Kernek was, associate vice president of administration and finance at UCF in central Florida at the time of these initiated, strategic business and ecological decisions and I am sure that the initiation of her efforts will always be appreciated and recognized here in Orlando, Florida!

By November of 2011, UCF -( University of Central Florida in Orlando, Florida),was able to use their energy even more effectively with the combined heat and power plant set to open. This green edition should be able to produce a third of the electricity needed on campus using natural gas – saving about $2.5 million a year. This was initiated a few years ago and upon further investigation, at the time of my latest researched update (last Updated in 2012), the construction efforts were carried and continue progressively. Many other universities and commercial builders took these innovations and renovations to heart and followed suit with more forethought for our environment and the effects of building, in unison with nature, that adds up to money- saving benefits as well!

*** Living on our planet is important; sustaining our environment is also important by being aware of the planet and everyone on it. Being aware of the results of proper building materials and the multi-level benefit to our environment, essential for humanity, nature, the elements and our posterity and with expanded actions and thinking we can save time and money in our efforts! Collective planetary preservation by changing the way that we build and maintain our buildings, homes and other structures is a gain for attaining an advantageous edge over the years of work that is needed to complete our life mission of global building change- beneficial towards a healthier planet for mankind, immediately and intensively required for the betterment of nature, the elements,and humanity.

I enjoy learning from you and from others offering me knowledge continuously!

Your Guide for Finding a Reliable Commercial General Contractor

As you can probably guess, a commercial contractor specializes commercial construction. A general contractor is involved in all steps of commercial construction, and they typically handle both private and public projects, from construction of schools to buildings, commercial spaces and more. They are responsible for overseeing a number of tasks, such as obtaining permits, design, purchases, adherence to codes of the building industry and compliance to state laws and norms.

When it comes to selecting a premier commercial general contractor, you have to be more careful because a lot of money is at stake. In this post, we will talk of the things that need your attention for finding a reliable commercial general contractor.

Start With the Basics:

You cannot work any random contractor you find online. Start by looking for licensed companies that have a good name in the local market. If a company claims to be the best in business or has worked in many projects, they will have enough clients. They should be able to offer references on request, which large tells about their portfolio. You need to understand the nature and range of projects they have completed so far, and whether they can handle your project, keeping the scope and other aspects in mind.

Ask for a Bid:

It is important to contact at least three to four commercial general contractors for the same job. You need to check if their pricing and bid is fair and transparent. Bids are meant to be detailed in all aspects, and you might need to check what’s included in the proposal sent to you and the things that have been excluded. Make sure that all bids are made around the same scope of work, otherwise it would mean comparing applies to bananas, which isn’t the ideal way to move ahead.

Communication Matters:

No matter how small or big your project may be, communication with your commercial contractor is more than important. If you are happy with the bid, ask them about the development process and find reasons why you should hire the company in the first place. The concerned company must explain their approach to the job, so that you can understand their areas of expertise. It is wise to use some of their projects as point of reference in your conversations, so that the overall process of discussion remains on the same line.

Know Their Team:

A contracting company usually has a team of professionals who help in deciding a lot of management considerations. You need to know the team that will be working on your project and whether they are good at maintaining client relationships. Don’t shy away from asking questions, no matter how stupid they may sound, as long as your queries are relevant to the project. You can also ask them about their work ethics and practices and what sets them apart from other companies in the same industry.

Check these things, and finding a commercial contractor shouldn’t take a lot of time.