PG Commercial Real Estate – Commercial Realtor Montgomery County, PA and Greater Philadelphia Region

How does the Commercial Real Estate Industry WorK?

Do you know how the Commercial Real Estate industry works, aka CRE? Here is a quick education if you are considering to rent, lease or purchase an office space or office/industrial building. Most owners of a commercial real estate property will engage in a contract with a commercial real estate agent, much like a residential realtor. This engagement would be for the sale, lease or renting of the  property.  In this scenario the real estate agent is responsible to represent the building owner and the property during the sale or lease and responsible for marketing the availability of the space.

There are many segments in the Commercial Real Estate industry based on the types of property. Here are the 4 main categories you will find among commercial real estate agents.

  1. Retail
  2. Office
  3. Industrial
  4. Multi-family

2 Subcategories: Hospitality and Medical. Most represent the seller or landlord during the transaction.

If you are looking to buy or lease one of these spaces finding a Tenant Representative that specializes in your area of interest is strongly recommended to help guide you through the process and assist in setting expectations. To learn more about the Tenant Representations’ role in the transaction read more here or contact Peggy to represent you.

Posted in: Commercial Real Estate, Newsletter Articles

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Cycle Analysis by Chip Hughes

TriState Slide by Chip Hughes

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Mandatory Continuing Education for PA and NJ real estate license can be dull. But… Chip Hughes of A.R. Hughes & Co (www.arhughes.com) did an excellent job of holding and interesting class on Cycle Analysis for the continuing education class in November 2013.  I would like to share one of the significant points Chip made by tracking the prevailing thought, in other words the herd, and where they are placing their money.

One way to recognize the prevailing trend of thought was to compare the percentage recovery of the various commercial real estate product types in Value from the Peak to the Trough before the 2007 – 2008 financial crisis and through to today. The percentages were based on National statistics.  It was obvious that for the category “Apartment – Major” the loss in Value was about 23.1 % and the percentage gain from Trough through today is 100%. The Moody’s summary Chip had referenced 20 different sectors of property types. For example there were Apartment, Apartment (65% recovered), Non-Major (percentage recovered 53.5%). The prevailing trend still appears to be favoritism for Multi- family and “Central Business District Office – Major” (75.3%). The recovery for Suburban Office as a type has only been 19.2%. This product type could be an excellent place to invest dollars before the prevailing trends shifts in that property types favor. Of course when you drill down to specific Cities and specific Suburbs the local economies will have different world cycles.

 

Posted in: Newsletter Articles

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Hiring a Commercial Real Estate Agent

With the advent of the internet and the wealth of information available online…. do I really need a commercial real estate agent to assist with my commercial real estate transaction?

Yes, and here is why.

As you can imagine finding a business location and/or a lease renewal for a location is a process. It is not just identifying a building and zip code it is more, and for those purchasing, it is a long term investment.

It is most efficient if you select a commercial real estate broker who can help you do the following:

  • See the Big Picture
  • Understand the Value of your Purchase
  • Negotiate the Best Terms Possible
  • Devote the Manpower and Time to Achieve all your Goals

Most commercial real estate agents work on a contingent basis, meaning they will get paid upon the purchase, or signing of the lease, which is usually paid by the Seller, or  Building owner. This type of arrangement is often a win-win situation for the company as they are not obligated to make a purchase. With that being said a company may also enter a retained agreement  with a retainer for services for a larger project that will take several years. Also most agents are working for the Buildings Owner. If you are a business looking for a location, or faced with a lease renewal, select an agent to represent your business.

If you decide to hire a commercial real estate agent we suggest you interview a few professionals and choose someone you like, trust and who has experience!

Posted in: Corporate Office Space

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Tenant Representation or Personal Shopper?

Tenant Representation is like being a personal shopper for a very large and complicated purchase; an industry term is Transaction Manager for the Tenant.  The women of C.R.E.W., Commercial Real Estate Women, might agree this is one reason women make great commercial real estate brokers. Women know what they want, how to find it and are excellent negotiators.

tenant representationPeggy Gallagher, owner of PG Commercial Real Estate and a woman real estate professional weighs in on the benefits of Tenant Representation and the value it has to a Business.

What makes an office space purchase, or lease, a complicated purchase? For starters the multiple layers from identifying the properties, to financing, to space layout, to taxes and orchestrating the move itself.

  • Knowledge of the language in contracts and the business terms associated with it
  • Distinguishing factors and expectations of different property classes: A, B etc
  • Setting expectations and help to compare industry standard in a purchase or lease, which can assist with the negotiation process
  • Access to information on available property and market information
  • Value & Cost Comparisons Breakdown of actual cost per square foot to compare Buildings
  • Assist you in building your Real Estate Team with key players
  • Compare and contrast similar properties

If you are approaching a lease renewal, or looking to move office space, and in need of a personal  real estate shopper, contact Peggy for how to get started!

Posted in: Corporate Office Space

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Considering Office Space in Montgomery County?

Considering Office Space in Montgomery County?

Is your business considering new office space in Montgomery County, PA?  If you have not does so already there are a few things you can do before you start hunting for properties. First things first.

Assess and summarize your current use of office space. 

Here are a few topics and ideas you may want to consider when choosing to look for new office space. This will help guide you to what you might need or want to look for that you may not have already considered.

CURRENT SPACE USE

Start with a basic list of PROS and CONS of your current office space. What do you like? What do you not like? How is the office layout? Where are the problem areas? Is the office layout conducive to the work environment and individual or team dynamics?

COMPANY GROWTH

Do you plan to expand or downsize your staffing needs over the next 5 to 10 years? Although hard to predict a business usually knows based on sales projections and a working business plan when more staff, or production space will be needed.  This should be a strong consideration in finding new space to be sure that you can grow into it, or have the option to add more space, if or when needed.

LOCATION

Employees, Customers & Prospective Employees. Will your move affect your current employees commute? Will a move to another town improve visibility to prospective employees?

(more…)

Posted in: Corporate Office Space

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Las Vegas ITRA Global Conference 2013

Las Vegas ITRA Global Conference – April 5th to 7th, 2013

So far 2013 has been a busy one, here is a quick recap from my trip to Las Vegas!

April 5th to 7th I attended the ITRA Global Conference hosted in Las Vegas.  A special thanks to Banner Travel in Rockledge, PA for assisting me in making my travel arrangements for this trip via Southwest Airlines and the Wynn Hotel.  When I arrived I was able to get tickets to the Cirque Du Sole show, KA at the MG M Grand. Ka was a spectacular show, if you get a chance to see it, go! Ka has been described as the following: “Ka… signifies life-force, consciousness, duty and destiny. In the vulgate, or low speech, it also means a place to which an individual must go.” ITRA Global Logo located on the homepage of PG Commercial Real Estate the website of Peggy Gallagher Commercial Realtor in Montgomery County, PA

CONFERENCE NOTES:

On Friday, Melissa Meyer President of Bruce International, Inc. (transcending translations) presented and did an excellent job. It was amazing to listen to her Top Ten Questions to ask our customers who maybe relocating out of our country, sending a team aboard, or a company locating in the US from somewhere else. Melissa also cited examples that highlight the reasons for using a specialized company, such as Bruce International, to assist with translations and customs of a culture if you are planning to do business outside of your own country.  There are cases where the  same words in a language can have different meanings or uses varying with the local culture; just think about the differences in the expressions of the British versus the US English.  During the presentation the question of the accuracy of Google Translation came up. This was an excellent example of a great tool that can translate out of context. The lesson we walked away with was, it is not worth it to insult or offend a client and to rely on a human translation vs an automated translation to ensure the translation is accurate to the situation and in context!

Many of the conference speakers were principals of other ITRA Global Affiliates. Other guest speakers included Matt Weirich and Ani Rangarajan, co-founders of ReaLync. On Saturday one of our ITRA Global members, Ron Pollina, Ph.D., shared his valuable experience in completing  Sale/Lease backs transactions.  The transactions  he used as examples were huge, significant sizes, in terms of dollar volume.

I gained a lot of good useful information  by attending the conference.  As an organization (ITRA Global) three new members were accepted to be exclusive ITRA Global Affiliates for Orange County (Corporate Realty Advisors), Los Angeles County (Mazirow Commercial), California, and Salt Lake City (Logical Move), Utah. Congratulations to our newest members, welcome to the team!

Vegas MoutainsWynn Hotel Street ViewTerrible's HotelPoolside Garden - Wynn

Hotel Lobby - WynnTreasure Island HotelWynn Lobby

 

 

Posted in: ITRA Global, Peggy's Travels

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What do commercial real estate business women do on the weekends?

Empire State Building

What do some commercial real estate and business women do on the weekends?

Have fun, of course! On Sunday April 14th a group of professional women took a Bolt Bus ride to New York City to see Breakfast at Tiffany’s at the Cort Theatre.  We had a delicious lunch at a fabulous Greek restaurant on 44th Street between 5th and  6th Avenues. We are a group of professional women that work hard and take trips to NYC thanks to our organizer Maureen Mastroieni, President of Mastroieni Associates. Our group included: Nancy Mastroieni from Mastroieni Furniture, Susan Giraldi of The Philomena Construction Group, Eileen Lynn of E, H. Lynn & Associates, Diana Sperle from Unisys, and me Peggy from PG Commercial Real Estate.

Here is a photo from our trip of the Empire State Building and the Hotel New Yorker – 2 iconic locations in NYC.  Do you spend quality time with your professional contacts outside of work?

 

Posted in: Peggy's Travels

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Montgomery County, PA

Montgomery County’s Office Market appears relatively stable based on a survey of 214 A class office buildings. In the September 2012 survey there was a vacancy of 14% and an average rental rate of $25.67 per SF per year. There has been some new construction. The first new Hospital to be built in the past ten years in S. E. PA opens this month in East Norriton, Montgomery County, PA. Einstein’s new Hospital is a 363,000 square foot LEED certified hospital building with 146 private beds and an adjacent medical office building, 100% leased on a 87 acre campus with about 30 acres dedicated to open green space. United Sates history is very visible in Montgomery County. PA Visitors’ Guide says: “Montgomery County was created on September 10, 1784 from part of Philadelphia County. Norristown, the county seat, was named for Isaac Norris, who owned land there. The vistas at Valley Forge Historical Park are especially breathtaking, both in fall foliage and later in the season as snow turns rolling hillsides into the perfect place to go sledding, or cross-country skiing. It was here that General Washington forged his Continental Army into a fighting force, during the difficult winter encampment of 1777-78. America’s past echoes through countless historic sites and homes in the Montgomery County area which trace the nation’s growth.”

Posted in: Newsletter Articles

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