Buyer Representation (top of page )
Commercial In-Sites, Inc. provides a range of professional services in representing a buyer who seeks to purchase property. There are basically two types of purchasers and the services provided to each group differ: first, there are those who seek to purchase real estate and use the property as an owner/occupant, and then there are those who seek to purchase real estate as an investment. In this summary, the services provided to real estate investors seeking non-owner occupied properties are referred to as "investor representation" or "investment property brokerage" and is dealt with in another section. Buyer representation therefore relates specifically to the following services which are provided to a user who seeks occupancy and prefers to own rather than lease:
Comprehensive Due Diligence… an in-depth evaluation and analysis of client needs and wants with respect to tangible technical requirements, subjective intangibles, and financial objectives. Generally, we seek to maximize our understanding of our client’s needs in order to conduct the most effective search possible and to help guide our clients through the requisition process.
Market Analysis… a market survey utilizing a combination of our extensive data base, our contacts, and our market knowledge to identify a range of candidate properties for preliminary consideration. As a result of this preliminary market analysis, a series of candidate properties will be identified for further evaluation with our client.
Screening of Candidate Properties… a preliminary due diligence analysis and investigation relating to the candidate properties, including site visits and inspections, as needed or desired, gathering of economic information, documentation assembly, compilation of building specifications/technical factors, and comparisons of subjective factors. All of the in-depth information relating to the key candidate properties is summarized and presented for client review. In screening properties for an owner/occupant, while the property must above all meet the owner’s technical needs, it is our responsibility to help acquire the property as cost effectively as possible, excepting occasional dual agency conflicts of interest.
Analysis of Final Target Property… the selection of the target property (and a backup in some cases). Specifically, this phase involves substantial confirmatory due diligence, financial and investment analyses, and may also involve, in some cases, assistance in obtaining financing or the development of sophisticated "buy vs. lease" analyses. All of this work is designed to establish sound negotiating parameters and objectives.
Negotiations and Closing… comprehensive assistance during and after the negotiations. Having negotiated hundreds of commercial real estate transactions, we understand how to negotiate the best value for our clients consistent with a win-win philosophy. Once negotiations are completed, we are not done - we continue working using a comprehensive closing checklist until the deal is done.
Tenant Representation (top of page )
Commercial In-Sites, Inc. can provide a range of professional services in representing a space user or tenant who seeks to lease property from others. Tenants count on us to find the perfect location for their business and to negotiate the best terms possible. We save tenants time and money because we know the market intimately and can obtain maximum advantage for our clients because of our experience in negotiating hundreds of leases. Tenants frequently are unaware of the possibility of professional representation and should always consider using professional brokers in the following instances:
Relocation Services…When you need new space, larger space, smaller space, more cost effective economics, or a better location, we take the time to understand your unique needs, do a preliminary market survey, gather details, rates and market availability, help you select a range of qualified properties which we have prescreened for you, prepare a request for proposal for multiple landlords, analyze the proposal responses and compare the properties on technical, financial and subjective grounds between various competing options, establish negotiating objectives and parameters, conduct the negotiations and place the property you select under control with a lease letter of intent, oversee the lease execution process to completion and then assist with move logistics prior to occupancy.
Renewal Services…When you want to stay where you are and want to renew your lease, but want to make sure you are getting the best deal available or, at the very least, a fair deal, we will review your current lease agreement, advise you of financial opportunities within the lease, analyze the current comparable market, provide you with a written report recommending negotiating objectives and parameters, conduct the negotiations on your behalf, and assist you in documenting the transaction.
Renegotiation/Subleasing Services…When you have too much space or too little space and still have time remaining on your lease, we will review your current lease agreement, analyze your options in the context of current market conditions, provide you with a written report summarizing our recommendations regarding negotiating strategies, sublease market conditions or buyout options and conduct the negotiations on your behalf.
In all of the above cases, our objective is to use our market knowledge and our experience in negotiations to maximize your real estate value – to make sure that you get the best terms possible within the context of a fair deal constituting a "win-win" for both Landlord and Tenant.
Site Selection (top of page )
Location, location, location. Everyone knows that these are the three prime ingredients for successful real estate ventures. Why is location and site selection so important? Because the economic factors affecting a location are virtually uncontrollable by a developer. Real estate professionals evaluate alternative locations during the development decision-making process in order to select the best available alternative because, once a decision has been made, the factors beyond the property boundaries will have dramatic influence on the property for its entire economic life. In order to minimize risk in a project, a real estate purchaser/user should seek to minimize locational risk and maximize locational rewards. This locational analysis and site finding can best be completed by savvy real estate professionals, such as the members of the Commercial In-Sites team – a group of professional advisors who know the market well and who have successfully completed site finding assignments for many clients. Since one of our brokers has earned both the CCIM and SIOR designations and two other brokers are working on their designations, we are exceptionally well trained to handle these types of assignments.
The first step in a site selection analysis is to clearly define the objectives of our client – which generally includes specifications of the general market region(s) to be served and nearly always, in the case of large multi-site retail/commercial chains, includes specific rules of thumb regarding location and market areas.
Given a solid understanding of a particular market
region, and assuming a specific commercial use, we identify a specific trade
area for a particular location, or in the alternative, we can define the most
effective location in light of existing or proposed competition for the
specified use. This evaluation considers locational evaluations on a micro-level
and combines analyses of demographics, transportation and access, and existing
and projected competition. In the
end result, our objective is provide specific recommendations. This includes
summaries of information which are designed to help our clients reach a fully
informed, prudent business decision.
If you have a site finding assignment, call us. We perform above your expectations – which is why we get asked back on repeat assignment by multiple clients.
Development and Leasebacks (top of page )
Increasingly, real estate has been viewed as a financial asset and is now an integral tool in corporate financial planning. In the last 10 years, corporations have increasingly focused upon their alternatives regarding continued ownership of real estate. In many cases, corporations own their real estate outright or have high levels of equity tied up in their real estate – assets which could be put to substantially better use and generate higher returns on capital if reinvested back into the corporation’s mainstream businesses. With this recognition, corporations seek out investors who would purchase the real estate and then lease it back to the corporation under long-term leases, thus preserving corporate control and use of the asset while freeing up equity in the process.
Just as the sale-leaseback works effectively for current corporate assets, it can also work just as effectively in new acquisitions and developments. In these cases, the corporation avoids major capital commitments to real estate, yet still achieves the same long term control and use of assets. Thus, a corporation may elect to retain a developer to acquire and rehab an existing building or develop a new greenfield site on a build-to-suit basis. The developer brings expertise and both debt and equity financing to the table, while the corporation brings a long term lease to the table, resulting in a "win-win" for both parties.
The Commercial In-Sites team is experienced and capable of structuring relatively sophisticated sale-leaseback, acquisition leaseback and development-sale-leaseback transactions. These transactions can take on infinite variations involving master leases, joint ventures, and future options, and are subject only to the creativity and experience of the participants in structuring transactions which satisfy the objectives of each party. We will perform the economic analyses, evaluate the alternatives, structure the transaction, help secure equity and debt financing as needed, and coordinate the entire process.
Build to Suit (top of page )
The "build-to-suit" or "BTS" is a generic name applied to a broad process of real estate development. Commercial In-Sites can provide guidance and assistance throughout the BTS process and, in essence, manage the process for the benefit of its client. Alternative strategies available in a BTS assignment include: 1) a build and own strategy using an architect and a general contractor; 2) a design/build, construction/management firm; 3) a build and developer-leaseback strategy; and 4) a build/sell and leaseback strategy. All of these different strategies involve distinctive advantages and disadvantages. Our role in the process in the early stages is to help the client quantify the range of alternatives and select the best preliminary course of action, maintaining independence until the client is ready to make commitments.
Once a preliminary strategy has been selected, we will assist the client in the choice of architects, developers, contractors, and/or design build firms as required under the selected BTS strategy. At this stage, initial project designs and new detailed cost estimates are obtained and we quarterback the process. In tandem with this effort, we research the market and identify and analyze qualified sites which meet our clients criteria, assisting in the selection and ultimately negotiating on the client’s behalf for the purchase option or control of the most qualified site for the BTS project. We can then walk through the governmental process, meet with city planning staff, engineers, and review boards and develop a detailed plan and timetable submitting plans and obtaining requisite governmental approvals.
At this stage, the BTS strategy is finalized, the lease vs. ownership decision is finalized, the form of construction contract is identified, final plans are developed, and final costs/bids are solicited from contractors and/or design build firms. If the decision is to lease, we will solicit quotations from developers or assemble an investment team to acquire the BTS project from our client at the completion of construction. Finally, we will then assist as required in negotiating the final business elements - financing and/or lease terms.
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1100 West U.S. Highway 30, Merrillville, Indiana 46410 Telephone: 219-795-1100 Fax: 219-795-1111 E-Mail