Education and CCIM

Are you familiar with the CCIM designation? Certified Commercial Investment Member, some describe it as the PhD of commercial real estate and I couldn't agree more. The CCIM lapel pin denotes that the wearer has completed advanced coursework in financial and market analysis, and demonstrated extensive experience in the commercial real estate industry. CCIM designees are recognized as leading experts in commercial investment real estate.

My business partner embarked on his CCIM educational journey in the early 1990's and received his designation. Frankly when you see someone with the CCIM designation on their signature line it does add to a certain level of confidence in their abilities. Commercial real estate is a competitive industry and for the most part it's a career that we embark on with the professional understanding that this is a marathon and not a race. Our colleagues with their CCIM are well trained for this marathon.

Many industries require continuing education for licensing and real estate is no different. The CCIM designation meets some of the continuing ed requirements so it serves a dual purpose. And not only commercial real estate agents can earn the degree: it is also held by professionals is complimenting industries that include:

• Investment counselors
• Asset managers
• Appraisers
• Corporate real estate executives
• Property managers
• Developers
• Institutional investors
• Commercial lenders
• Attorneys
• Bankers
• Other allied professionals

So now it is a resource for networking with others that provide services that we need to get the deals done! 

My encouragement...look into your local CCIM Chapter and attend an event. Then consider joining the chapter while you take the courses to become a designee because honestly this takes TIME! There are 4, week long courses that are required, several smaller electives as well as the time to produce your portfolio. There are tests you will take after each course and then the grand daddy test of them all that is offered 2 times a year. It's a process and a commitment but the learning, connections and other benefits are worth it. 

CCIM Recognized Leaders in Commercial Real Estate

The Value of Team

Have you ever tried to do something on your own? Then later watched someone do the same thing but with a team involved? In most instances an effective team makes the process smoother and faster but the key word here is EFFECTIVE!

We knew from experience that we wanted to form a team that not only was effective for the client and the process but that also would provide a level of customer service that was greater than the competition. But finding the right elements (aka people) for the team can sometimes be a challenge. What a person brings to the table can be both positive and not so positive, right?

Several years ago, we were told that the best commercial agents are typically from a sports background and/or military which translates to them being easily coached and able to be on a team. Now taking the sports analogy a step further, it's obvious that we don't need a team full of quarterbacks or linebackers, our team needs to be balanced in order to be successful. Recruiting for all positions is important, looking at what the team already has in place and filling the voids is necessary.

A team needs to understand each others strengths as well and to do that we enlisted the expertise of Gallup Research and Strengthfinder 2.0. We started by having each member of the team purchase the book & take the online test to help identify their Top 5 strengths. Once we knew what each persons' strengths were, we had a better understanding of what strengths we needed to fill and also how to best utilize one another! www.strengthsfinder.com

Our team of 5 is strong and balanced with attributes that include Strategic, Analytical, Activator, Learner, Developer, Communication, Positivity and Woo! But most importantly we are committed to our clients and have made it our goal to be the best commercial real estate team in Orange County and in the process become highly recognized for providing service that exceeds our clients expectations. What do you think?

Time to renew your lease?

When does your lease expire? It is important to not only know this date but give yourself plenty of time BEFORE the date to research the market in order to make the best decision for you and your business. You will need to have a clear understanding of the current market, understand how your "option" compares to that current market rate (if you have an option to renew written into your lease contract) and of course knowing what else is available on the market.

If you have an option to renew, that date typically falls 4-6 months prior to the expiration of the lease. But don't assume, you need to check that date and make sure you have all the information you will need prior because that date is not negotiable, once it passes you have lost your option to renew.

Besides the rate there are a few other things that you may want to address during your lease renewal that can be beneficial to you. 1) Renegotiate your security deposit if a higher deposit was required initially and you have been a tenant in good standing 2) Negotiate a refurbishment allowance if you have been there for 10 or more years to "freshen" things up a bit. Both of these things are typically overlooked or missed altogether when the renewal process is underway. Why? Most tenants enter into the process alone and without representation but as you can see, having an expert on your side can actually save you money.

8 steps to the leasing process...Ready? Let's get started!

It is so important to understand the stumbling blocks that could crush your chances of success when it comes to the leasing process and in order to do that, we need to have a clear picture of the leasing process itself. Now here is where I strongly encourage you to enlist the help of an experienced commercial real estate professional to help you! Why? Several reasons but to put it into practical terms, Google is a great resource for remedies for the common cold but when you have pneumonia, it is necessary to seek the help of a medical professional to make sure you heal thoroughly and to protect against it getting worse.

For the last 4+ years I have taught a seminar called Demystifying the Commercial Leasing Process. What used to surprise me was how many people showed up each time I would teach it-anywhere from 25 to 60 people came wanted to have the mystery removed for them. The attendees included property owners wanting to understand better how to lease their buildings, small business owners looking to make a move or new business owners starting the process for the very first time. Regardless, they were all wanting to be educated and over the course of a 3 hour seminar I hoped I gave them some knowledge.

Timing the transaction is everything if you are the tenant or the landlord. Both need to begin the process early. If you are a tenant, 4-8 months before your move date is ideal and that same timing applies to the Landlord to list a space that is coming available. By planning well in advance, time will be your ally and not your enemy.I realize this seems extensive but you NEVER want to feel under the gun while you are looking and negotiating.

Step 1- Define Your Requirements

Simply you need to define your requirements in advance. By doing this you will save time and avoid starting in the wrong direction. The most effective way of doing this is by committing the requirements to paper so that nothing is overlooked. 

•What geographic area(s) is important to you?

•What particular buildings interest you?

•Does your type of business have specific space configuration needs?

•How many square feet will be leased?

•How many people will be employed at this location?

•What is your annual budget?

•What length of lease is preferable?

•Is future expansion important?

•When does your company intend to move?

•When does your existing lease expire?

•What are your parking and transportation needs?

•Do your clients visit often?

•What kind of image would you like to establish?

Once we have a clear idea of what we are looking for you we can move on to Step 2...Locate Suitable Properties. But you will need to wait until the next blog entry to see what that looks like.