Tag Archives: commercial space

Increase demand Arizona commercial real estate

Changing Office Demands In Arizona: Is Office Space Becoming Obsolete?

An estimated 450,000 U.S. office jobs have moved offshore in recent years, and that number will likely grow as high as 3.4 million by 2015, according to a study performed at Columbia University in New York. And those aren’t the only jobs that are vacating U.S. offices. Further research shows that 44 million U.S. workers have traded in their cubicles for home offices; the number is projected to rise to 51 million by 2012.

I am sharing these statistics because they spell opportunity, not trouble. In fact, real estate economists predict new demand for office space will exceed 410 million square feet by 2015, 75 million of those square feet are here in Arizona alone.

With this increase in demand for commercial space, it is no wonder one must move quick in Arizona’s commercial market. However, you need to be smart.

No matter how competitive the real estate sector is, you need to keep in mind what trends are most likely to shrink and expand.

First look at industry movement; we all know that industry shifts are nothing new. Starting with farming and agriculture, the next in line was factory jobs and later corporate and information technology. Experts say the service, creative and design industry jobs will drive the demand for commercial space over the next five to 10 years.

You can check with your local community economic growth reporting offices, which are located within city hall, government reporting or small business administration offices. Colleges and universities will often release economic area growth reports so you can stay informed as to what the growth patterns are in your Arizona community.

Another great approach is to check economic reporting in major metropolitan papers so that you can keep tabs on national growth trends that could ultimately affect your community.

Arizona is widely becoming known for it’s industrial and major corporate office space growth; however, we seem to be more industry niched in the online product arena, such as godaddy.com in Scottsdale, and professional focused companies in the medical and representative areas, such as insurance and legal.

Every now and then you will find an international brand headquartered here such as Dial soap, also based in Scottsdale. With all of that said, reaching out to the professional, focused office categories such as medical and information technology seem to occupy at a faster rate and have longer term leases.

Commercial real estate here in Arizona is ripe with opportunity for investors and small business owners alike. Small Business Administration (SBA) lending is at an all-time high with interest rates lower than they’ve ever been, so there is no time like the present to get out, create an opportunity for yourself, and take advantage of good prices on commercial real estate. Last but not least, it is extremely important that you hire a broker that is not only knowledgeable about the area but also has an understanding of your business.

[stextbox id=”grey”]These tips are provided by Pete Baldwin, designated broker and owner of Platinum Realty Network with offices in Scottsdale and Flagstaff, Ariz. With over 25 years of experience in business and real estate, Pete specializes in country club communities and second home investments, including large commercial portfolios. He also owns an Arizona branch of a family-owned, Montana-based company Baldwin Log Homes – Arizona Territory and has become the area leader in full- custom, handcrafted log homes in Northern Arizona. For more information, please visit www.PeteBaldwin.com.[/stextbox]

Fair and profitable deals, renting commercial property

Commercial Corner: Keeping Deals Fair, Yet Profitable

The Negotiating Power is Shifting with Office Leases

With the economy showing positive signs of recovery, savvy business owners and professionals are getting smarter about where they put their office and how to run it more efficiently — and for half of the expense.

They are asking for lower rents, more benefits and less responsibility.

With the surplus of office space available, renters are now in a place of negotiating power when it comes to leasing a commercial space. However, there are a few things that you as a property owner can do to make sure that you keep your negotiating power in place and keep it fair, yet profitable for you.

1. Change name for type of office space

By adding in higher level titles to an office space such as an “Executive Suite” or “Commercial Loft,” you can give more value to the space as well as make it more attractive. By placing more of a “city style” approach in the marketing of your space, you can attract larger prospective tenants. This can also help you create more of a demand for the space which puts you in a better place when it comes to who you lease to and exactly what the terms should be.

2. Market constantly, even when you are at a no-vacancy status

The negotiating power has shifted in the commercial arena, however the owner can have a bigger advantage if they have an ongoing plan to market the space in the community. I am not referring to paying for advertising the space; simply look at the properties that are in areas where professionals like attorneys, real estate brokers, insurance brokers and chiropractors are in need of clean, intelligent space and reach out to them either by phone, mail or online. Keep in touch with them every other month by reaching out through a direct mail piece or phone call; you never know when they will be on the hunt for a larger office space or a different location.

3. Add value and partner with virtual service companies

Professionals need support staff now more than ever. However, the expense of having onsite receptionists can be costly. Reach out to a virtual services company in your area, and add them into your potential offerings or even advertising.

Dentist offices are popping up now with their receptionist on a large computer flat screen to check in patients. This can save hundreds, even thousands of dollars to professionals. Make sure that you do your due diligence before you tie your building brand name to a virtual service company. A few places to check online: odesk.com or guru.com.

4. Target home-based companies and give incentives to move

Because office space has become more open and available as well as affordable, small business owners and professionals are shifting from being at their home office over the past few years to an offsite location. It’s nice to get out of the home and head to a quiet place to get some work done. Not to mention, this saves people from having that feeling that they need to work whenever they walk in the front door of their home. This is an excellent selling point. Make enticing offers to include the benefits of it being an affordable solution as well as a way for business owners to separate home from the office.

5. Hire a Broker that can locate surpluses and shortages

It is vitally important that you have a broker on your side that is not only knowledgeable about the area where your building is located, but knows where there are gaps and opportunities as well. Ask them simple questions such as, “What are your client’s average occupancy rates?” and “How well are you connected in the professional community?” Another great question is, “Have you helped your clients/investors market their property to fill their available spaces? If so, what did you do for them?”

[stextbox id=”grey”]These tips are provided by Pete Baldwin, designated broker and owner of Platinum Realty Network with offices in Scottsdale and Flagstaff, Ariz. With over 25 years of experience in business and real estate, Pete specializes in country club communities and second home investments, including large commercial portfolios. He also owns an Arizona branch of a family-owned, Montana-based company Baldwin Log Homes – Arizona Territory and has become the area leader in full- custom, handcrafted log homes in Northern Arizona. For more information, please visit www.PeteBaldwin.com.
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