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Posts Tagged ‘commercial real estate’

Report Forecasts More Commercial Real Estate Vacancies

January 5th, 2010

By Mark Schecter | 2 Comments »

office-buildingsFlorida’s commercial real estate market began its downward spiral a couple of years ago and continued through 2009 with slight signs of improvement. As the vacancies continue to rise, so does the rate of loans in default and the number of distressed commercial properties.

Despite the doom and gloom, some experts think there is an upside in the commercial leasing industry. While credit lines remain tight and more companies shy away from making large purchases, many are considering commercial real estate leases. Even then, the demand for commercial leases may not be significant enough to single-handedly pull the market out of its slump anytime soon.

In its 2010 Commercial Real Estate Forecast, Grubbs & Ellis real estate investment firm reviews the major real estate markets throughout the US, including Florida and specifically Broward County. They opine the commercial market in Florida will continue to face challenges in 2010 with regard to vacancies.

According to the report, commercial landlords in Broward County are entering 2010 facing significantly more vacancies than they saw at the start of 2009. The report estimates the vacancies are 3 times more than the preceding year.

An example of what landlords in Broward’s office sector may be facing in 2010 can be seen at the 110 Tower in Fort Lauderdale’s Central Business District. After the loss of two large tenants, AutoNation and Republic Industries, the 110 Tower ended 2009 with nearly 50% of its building vacant.

AutoNation, who once occupied more than 200k square feet in the 110 Tower, downsized to 100k in a newer building. And, Republic Industries gave up 60k square feet when they merged with Allied Waste in 2009.

The report points out that Broward County, when compared to the surrounding counties, has been able to keep its vacancies below other South Florida areas because of its ability to attract workers from nearby areas.

The report also states:

The big question for 2010 is whether or not another major tenant will downsize. The market’s vacancy could easily rise by 50 basis points or more above the forecast just by having a couple of large tenants pull out. Additionally, some of the large spaces available for sublease may roll back to the landlord.

Click here to read the entire report…

Don’t forget to return and let me know what you think about the 2010 Commercial Real Estate Forecast in the comments section.

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Posted in Fort Lauderdale Real Estate, Schecter Law | 2 Comments »

Unexpected Buyers of Commercial Properties in South Florida

November 6th, 2009

By Mark Schecter | 2 Comments »

In recent months, we’ve discussed a range of topics relating to South Florida’s commercial real estate market. We’ve considered the current state of the market, the benefits of investing in commercial properties and foreclosures, as well as facts you should know before you lease commercial property.

As the commercial market attempts to recover from its slump, properties in Broward County are being purchased by some unexpected buyers – local municipalities. Cities like Sunny Isle Beach and Miami Gardens are taking advantage of commercial foreclosure deals and grabbing up real estate for future expansion projects.

Sunny Isles Beach

The city of Sunny Isles Beach recently secured nearly 1.5 acres of land to use to build a new park. The two retail buildings were purchased for $9.3 million, and the city is in the process of purchasing a third retail property. This follows a previous acquisition of a 2-acre parcel.

Read more…

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Posted in Commercial Foreclosures, Commerical, South Florida | 2 Comments »

Fractional Ownership of Commercial Real Estate: How it Works

September 5th, 2009

By Mark Schecter | No Comments »

If you’re a commercial property developer, investor or any other professional connected in some way to the real estate market, you have probably heard the term “fractional ownership” thrown around from time to time.

According to Wikipedia, “In business, fractional ownership is a percentage share of an expensive asset. Shares are sold to individual owners. A fractional owner enjoys priorities and privileges, such as reduced rates, priority access on holidays and income sharing.”

As it relates to commercial real estate, fractional ownership is when several individuals join together and purchase commercial property that would otherwise be too expensive to buy or extremely difficult for any one of them to manage solely. Typically, fractional ownership is ideal for large expensive properties, and not for smaller, more affordable real estate.

Let’s assume you’ve found a property you’re unable to purchase alone. Thus, you and 9 other people decide to purchase the property together in exchange for 10% (1/10) ownership of the property. Your 10% would be considered your “fractional ownership” of said property.

As a fractional owner of property, you’re not solely responsible for the upkeep of the property or the property taxes. Just as you share ownership, you share use of the property, as well as the burdens and other responsibilities.

Although fractional ownership is often confused with timeshares, the two are very different. With timeshares, you pay to use a property for a specific amount of time (i.e. 1 month in the summer or a couple of weeks in the winter). This is very common with vacation and resort-style properties. Unlike timeshares, with fractional ownership you actually own a percentage of the property you use periodically.

As with any commercial property acquisition, if you’re considering entering into a fractional ownership arrangement in Florida, you should hire an experienced Florida property acquisition attorney to negotiate the terms of the agreement and protect your interests. The property acquisition attorneys of Schecter Law represent developers, buyers, and sellers of commercial property. Contact us to discuss your commercial property and fractional ownership needs.

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Posted in Commerical, Real Estate Law | No Comments »