Sunday, November 4, 2007
CityPlex Towers Outparcels to be Developed
Land in front of CityPlex towers at 81st Street and South Lewis in Tulsa, OK will soon be home to a full shopping complex including anchor stores Whole Foods market and Barnes and Noble Bookstore according to Mike Predovic, Managing Partner of Tower Realty Group. The current area of land has been vacant except for Victory kids building which was once a walk-through Bible exhibit for Oral Roberts Ministries.
Wednesday, May 30, 2007
Pearly Gates about to open in Broken Arrow, OK
Pearly Gates about to open in Broken Arrow, OK
Family Smiles Dentistry is about to open their doors for business in Broken Arrow this month. The new office will be located at 300 N. Aspen, at the northwest corner of Aspen and Detroit, just north of Panera's Bread Company.
Dr. Evan Clothier and his family recently relocated from Pittsburg, KS to open up their business in Broken Arrow. The office features a kid-friendly environment with glass lobby, flat screen televisions and colorful décor to allow kids and families to have a pleasurable experience when visiting the dentist.
Neil Dailey of the Baskin Real Estate Specialists with McGraw Realtors assisted Dr. Clothier in their site location and negotiations. "We looked at about every possible site in town before deciding on this location. The neighboring businesses and the increasing traffic counts made this a prime location and we were able to negotiate a great price for Dr. Clothier and assist him in getting started with the development," said Dailey.
Be sure to stop by and visit Dr. Clothier at Family Smiles Dentistry on Aspen in Broken Arrow, OK between 71st and 81st Streets on the west side of the road.
Saturday, May 5, 2007
Developing Our Community
By: Neil Dailey
This week the City of Tulsa hosted "developing our community," a community forum for understanding and integrating development processes in Tulsa.
The program began with keynote speaker, Don Himelfarb-City of Tulsa Director of Economics, talking about the creation of the Economic Development Department and the city's role in creating and assisting growth in Tulsa under the Taylor administration. Himelfarb also touched on various issues including the relocation of city hall, redevelopment around the bok arena with retail, office space and loft style residential properties.
Pat Treadway, City of Tulsa Planning Department Manager, focused his attention on the revision of the Comprehensive Plan for the city. Treadway stated that there hasn't been a major revision of the total Cmprehensive Plan since the mid 1970's. Treadway introduced "PLANitTulsa" as the new planning process and produced a request from the office of the Mayor to attend public meetings for citywide planning. You can see more about PLANitTulsa at www.planittulsa.org.
Saturday, April 7, 2007
Thomas Kish of CashFlowExperts.biz with us on 1170 KFAQ
Thomas Kish is the president of CashFlowExperts.biz and the creator of the ultimate real estate investors guide-How to create wealth without using your own cash. Thomas will be talking about how to use a business line of credit to invest in real estate and other valuable investments. Tune in online to www.1170KFAQ.com or on 1170 AM radio, Saturday April 7, 2007 to hear valuable investing information from Thomas Kish of CashFlowExperts.biz on The Future of Real Estate with Darryl Baskin and Neil Dailey.
Tuesday, March 27, 2007
How can you save Thousands of dollars?
By: Neil Dailey
If you are involved with selling or buying real estate and you haven’t heard of a 1031 Exchange…you'll love hearing about a 1031 Exchange. A 1031 Exchange, named after the IRS code, is a way to defer capital gains tax on the proceeds from the sale of real estate or personal property.
In order to qualify for this exchange, certain rules must be followed:
1)Both the relinquished property and the replacement property must be held either for investment or for productive use in a trade or business. A personal residence cannot be exchanged.
2)The asset must be of like kind. Real property must be exchanged for real property, although a broad definition of real estate applies and includes land, commercial property and residential property. Personal property must be exchanged for personal property. (There are some complicated rules surrounding this -- for example, livestock of opposite sex are not considered like kind property for the purpose of a 1031 exchange.)
3)The proceeds of the sale must be invested in a like kind asset within 180 days of the sale. However, the property must be identified within 45 days, but up to three properties may be identified.
This process can be incredibly handy if you are a property owner or business owner selling your building and buying another or if you are an investor selling off a portfolio of properties. The capital gains tax being deferred can easily reach hundreds of thousands of dollars, so you can see how important it would be to defer the tax and reinvest the money in the new property.The popularity of this capability has caused the emergence of hundreds of companies specializing in every aspect of this process.
There are companies that just handle the replacement properties by selling “triple net” properties. Triple net properties, or NNN Properties, are buildings occupied by tenants that bear the full responsibility for the taxes, maintenance and insurance on the building. For example, if you bought a building occupied by a national drugstore, you would just have to collect the rent every month. If the roof leaks, the tenant would take care of it without calling you. It’s essentially “mailbox money.”
For more information on 1031 exchanges, visit http://www.irs.gov/ or for a list of properties in your area, you can reach me at 918-853-7337.
If you are involved with selling or buying real estate and you haven’t heard of a 1031 Exchange…you'll love hearing about a 1031 Exchange. A 1031 Exchange, named after the IRS code, is a way to defer capital gains tax on the proceeds from the sale of real estate or personal property.
In order to qualify for this exchange, certain rules must be followed:
1)Both the relinquished property and the replacement property must be held either for investment or for productive use in a trade or business. A personal residence cannot be exchanged.
2)The asset must be of like kind. Real property must be exchanged for real property, although a broad definition of real estate applies and includes land, commercial property and residential property. Personal property must be exchanged for personal property. (There are some complicated rules surrounding this -- for example, livestock of opposite sex are not considered like kind property for the purpose of a 1031 exchange.)
3)The proceeds of the sale must be invested in a like kind asset within 180 days of the sale. However, the property must be identified within 45 days, but up to three properties may be identified.
This process can be incredibly handy if you are a property owner or business owner selling your building and buying another or if you are an investor selling off a portfolio of properties. The capital gains tax being deferred can easily reach hundreds of thousands of dollars, so you can see how important it would be to defer the tax and reinvest the money in the new property.The popularity of this capability has caused the emergence of hundreds of companies specializing in every aspect of this process.
There are companies that just handle the replacement properties by selling “triple net” properties. Triple net properties, or NNN Properties, are buildings occupied by tenants that bear the full responsibility for the taxes, maintenance and insurance on the building. For example, if you bought a building occupied by a national drugstore, you would just have to collect the rent every month. If the roof leaks, the tenant would take care of it without calling you. It’s essentially “mailbox money.”
For more information on 1031 exchanges, visit http://www.irs.gov/ or for a list of properties in your area, you can reach me at 918-853-7337.
Saturday, February 10, 2007
Rentable or Useable…that is the question.
If you have ever been faced with this question regarding your real estate lease, then you may have wondered, “what’s the difference.” Well, there can be a huge difference! Recently, one of my clients needed to know what this meant to him. Here's my explanation:
If you are in a situation where you are looking at leasing new office space or you are renewing your lease and you come across these terms, pay close attention. The term “usable” will be the actual size of the Premises in which you rent and can actually use. For examples sake, if you have a 50’ x 50’ office, that means you are renting 2500 sqft and that is your “usable” square footage. However, in the office building you are renting from, there is a nice plush lobby and several common areas totaling 10,000 sqft.
Who pays rent on that space? The Landlord is giving you that space for free, right? No. You and your comrades (other tenants in the building) pay for that. Using the same example above, say there are 20 total tenants in the building comprising of 100,000 sqft of leaseable space. To get your proportionate share of that 10,000 sqft, divide the number of sqft you occupy by the total number of leaseable sqft in the building. Therefore we end up with 2,500/100,000, which equals 2.5%. We then take 2.5% of the total common area (10,000 sqft) and get your share which equals 250 sqft.
So, now we find that you have 2,500 sqft of “usable” sqft, but have 2,750 sqft of “rentable” sqft. Now you say, “250 sqft isn’t that much.” You may be right, but you still have to pay rent on it. If you are in a Class A office building, that rent might be quite expensive.
If you have been quoted $25/psf and are budgeting to pay $25/psf for your 2,500 sqft that you picked out, it might be quite a surprise when you find out you actually have to pay on 2,750 sqft. On 2,500 sqft your rent per month would be $5,208.33 and after you tack on the additional sqft you are now paying $5,729.17. That’s a difference of $6,250 per year!
Just think if you were renting a larger space in the 15,000-20,000 sqft range! That additional sqft, known as the “load factor” would be exponentially larger and more expensive. Combine that with annual rent percentages and these costs could get out of hand quickly.
What you can do is to make sure you know the difference between Rentable and Usable. Then, you can make sure your Landlord provides you with: 1) the total sqft of the building, 2) the total amount of common areas in the building, and 3) request this information in writing and to be reflected in the lease. Once you have this information, you will be better informed to negotiate the lease and request a cap on any increased in common area expenses.
Additional lease negotiation tips.
If you are in a situation where you are looking at leasing new office space or you are renewing your lease and you come across these terms, pay close attention. The term “usable” will be the actual size of the Premises in which you rent and can actually use. For examples sake, if you have a 50’ x 50’ office, that means you are renting 2500 sqft and that is your “usable” square footage. However, in the office building you are renting from, there is a nice plush lobby and several common areas totaling 10,000 sqft.
Who pays rent on that space? The Landlord is giving you that space for free, right? No. You and your comrades (other tenants in the building) pay for that. Using the same example above, say there are 20 total tenants in the building comprising of 100,000 sqft of leaseable space. To get your proportionate share of that 10,000 sqft, divide the number of sqft you occupy by the total number of leaseable sqft in the building. Therefore we end up with 2,500/100,000, which equals 2.5%. We then take 2.5% of the total common area (10,000 sqft) and get your share which equals 250 sqft.
So, now we find that you have 2,500 sqft of “usable” sqft, but have 2,750 sqft of “rentable” sqft. Now you say, “250 sqft isn’t that much.” You may be right, but you still have to pay rent on it. If you are in a Class A office building, that rent might be quite expensive.
If you have been quoted $25/psf and are budgeting to pay $25/psf for your 2,500 sqft that you picked out, it might be quite a surprise when you find out you actually have to pay on 2,750 sqft. On 2,500 sqft your rent per month would be $5,208.33 and after you tack on the additional sqft you are now paying $5,729.17. That’s a difference of $6,250 per year!
Just think if you were renting a larger space in the 15,000-20,000 sqft range! That additional sqft, known as the “load factor” would be exponentially larger and more expensive. Combine that with annual rent percentages and these costs could get out of hand quickly.
What you can do is to make sure you know the difference between Rentable and Usable. Then, you can make sure your Landlord provides you with: 1) the total sqft of the building, 2) the total amount of common areas in the building, and 3) request this information in writing and to be reflected in the lease. Once you have this information, you will be better informed to negotiate the lease and request a cap on any increased in common area expenses.
Additional lease negotiation tips.
Subscribe to:
Posts (Atom)
