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    The How To Add Value Handbook For Commercial Real Estate
    The How To Add Value Handbook For Commercial Real Estate
    The How To Add Value Handbook For Commercial Real Estate
    Ebook217 pages2 hours

    The How To Add Value Handbook For Commercial Real Estate

    By Brian Hennessey

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    About this ebook

    From the author of a #1 Bestseller of commercial real estate books on Amazon, "The Due Diligence Handbook For Commercial Real Estate".

    My objective in writing this handbook about creating value for commercial real estate is to help those owners and commercial real estate professionals discover the successful strategies I’ve encountered, learned, and practiced over my career. I wish I had this knowledge when I was starting out. It would have saved me from much frustration and a lot of trial and error learning.

    When I read for instructional purposes, I want the “Cliff Notes” version. In other words, I want the 20% that will give me 80% of the results I’m looking for and not a bunch of minutia with 30 to 50 pages of fluff that I have to sift through to find the helpful tips or key points. I also include some examples and stories so that you can see how these work in the real world.

    If you’ve read my book, "The Due Diligence Handbook For Commercial Real Estate" you know what I’m talking about. I attribute its popularity to the fact that it cuts through to the “meat” of the subject and gives the reader the step-by-step instructional information needed to conduct due diligence properly when buying investment properties. Your “golden” opportunity may turn to “lead” if you don’t know where to find the hidden problems, undiscovered issues, and value creation opportunities an investment may hold. Much money can be saved and made by learning how to do it properly. Unfortunately, most investors and real estate professionals don’t know how to properly conduct due diligence because they “don’t know what they don’t know.”

    The fundamentals remain the same for the most part, when it comes to adding value and leasing. This information can be used across the various genres of commercial real estate investments, whether it’s office and industrial, retail or multi-family residential properties. I comment from time to time throughout the book on the different angles or strategies you may want to consider for the different property types, which I have obtained from my own background and experience of 30+ years in the commercial real estate industry—or from those I know to be the best at their particular specialty.

    In this handbook you will learn:
    *How to determine the best way to price the rental for your investment property to get it leased at the highest rent
    *Tips and strategies to make your property attract tenants
    *How to interview and hire the right people that will help you get your property leased and create more value
    *How to structure your lease rate and terms to create the most value for your investment property
    *How to incentivize tenants to lease in a down or over crowded market
    *Essential analysis forms, proposal and lease form samples, tenant application and other forms that will help you to focus in and make it all easier

    The good news is that these are very learnable skills that can be put into use right away to enhance your efforts to add value to your real estate investment.

    For the more seasoned commercial real estate investors and professionals, my hope is to give them some of the insights that I have witnessed and experienced from being a commercial real estate broker doing tenant representation where I learned how many of the larger corporate tenants view their leasing objectives. Also, I will share valuable experience from my time as a landlord representative where I leased properties as a local leasing broker. I also spent time as a Vice President of Leasing for an investor who owned about 12 million square feet across the U.S,
    where I had to learn local practices and customs, as well as the ins and outs of the various markets such as Los Angeles, Dallas, Houston, Chicago, Orlando and Phoenix. Experiences learned during this phase of my career have also contributed to the contents of this book.

    Learn and practice these principles to create more va

    LanguageEnglish
    PublisherBrian Hennessey
    Release dateJul 3, 2017
    ISBN9780998616315
    The How To Add Value Handbook For Commercial Real Estate
    Author

    Brian Hennessey

    Brian Hennessey has been in the commercial real estate industry for over 30 years as: a commercial broker; a Senior Vice President of Acquisitions and Dispositions and ran his own real estate syndication/asset management company. He has represented a number of Fortune 500 Tenants including Bank of America, The Walt Disney Company and Baxter Healthcare.With over 12 million square feet of sale and lease transactions; a wealth of experience was accumulated.Having and adhering to a proven system keeps you from missing something and allows you to do it faster, easier and more efficiently."The Due Diligence Handbook for Commercial Real Estate" was written originally as a personal reference tool/checklist because of the many facets and volume of information that is needed to be remembered for each transaction. It is filled with information that is useful in any commercial real estate investment purchase; an apartment building, retail, industrial, office or residential property, from the smallest to the largest. The fundamentals remain the same, no matter what the property type.Much value can be added to an investment by being aware of the potential of each opportunity's strengths and weaknesses and using them to your optimal advantage. This handbook will help you to uncover those so that you may make informed and intelligent decisions while analyzing commercial real estate investments.He is also the author of "The How to Add Value Handbook for Commercial Real Estate", "The Residential Agent's Handbook for Commercial Real Estate" and "Too Old to Hire, Too Young to Retire, A Comprehensive Guide for Body, Mind & Soul".

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      The How To Add Value Handbook For Commercial Real Estate - Brian Hennessey

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      Reader Comments

      Brian Hennessey’s books are invaluable staples, for both beginner and veteran alike. In his newest book, Brian again draws on his impressive experience to identify foundational best practices, developed from years in the trenches, and presented in a clear and concise format, creating another must-read, handbook that is, at the same time, both simple and smart.

      − Robert McBride, Commercial Real Estate Broker

      This book has a wealth of information that is beneficial for all real estate professionals and owners. We are in the property management business and more and more owners today expect us to operate as asset managers with an eye for creating value for their respective properties. Many of the key elements to creating value through marketing, leasing, tenant mix and the right personnel for each property are included in the book. This is a must read and on-going resource for all who want to make money in the real estate business.

      − Jock Ebner, President, Morlin Asset Management, LP

      As a ‘value-add’ player since the 1970’s, I always look for ways to find opportunities in real estate. Whenever lucky enough to find something interesting, then the fun starts. Brian Hennessey’s writing can help with that part, both for the seasoned veteran and the novice rookie. He goes into every area I could think of, and even some I have never thought of. A must-read for anyone wanting to make money as a principal real estate player.

      − Maury Fagan, Real Estate Investor

      I’ve been a commercial real estate broker over three decades. After reading The How to Add Value Handbook For Commercial Real Estate, I believe it is as valuable as Brian Hennessey’s book The Due Diligence Handbook For Commercial Real Estate; which I am still referring to so I can be certain that I am not missing anything while conducting due diligence. They contain so much valuable information, it is practically a FOUND TREASURE for anyone involved in commercial real estate, whether a seasoned realtor/broker or an investor/commercial property owner.

      − Krich Adary, Director, Archetype Commercial Realty

      The How To Add Value Handbook For Commercial Real Estate offers an in-the-trenches view of creating value in the real estate market. It’s grounded, real world examples underscore the importance of thinking through design and leasing decisions with the end in mind.

      − William King, AIA Architecture-Planning-Design

      Contents

      Introduction

      Chapter 1: Having the Proper Mindset

      Who It Affects

      The Difference It Will Make

      The Purpose in Getting It Right

      Chapter 2: What Are Your Leasing Objectives?

      Creating Value

      Creating Income

      What’s your Exit Strategy?

      Are Your Expectations in Line with Your Market and Competitive Set?

      Do You Need Help from Others in Achieving Your Leasing Goals?

      Chapter 3: How Do I Find and Choose the Qualified People to Help Me?

      Interviewing Commercial Real Estate Brokers

      Interviewing Property Managers

      Chapter 4: How Does My Property Stack Up Next to My Competition?

      Pricing, Concessions, and Other Considerations

      Putting Your Property in Its Best Possible Light

      Chapter 5: Marketing Your Property for Lease

      Who Are Your Target Tenants?

      What Is Your Plan A, B and C?

      Chapter 6: Optimizing Lease Potential

      Other Strategies to Optimize Leasing

      Timing

      Chapter 7: Lease Types

      Triple Net Lease

      Modified Net Lease

      Full Service or Gross Lease

      Modified Gross Lease

      Industrial Gross or Modified Gross and Industrial Net Lease

      Apartment Lease

      A Brief History of Leases

      Chapter 8: Creating Additional Value Through Rent Structuring

      Additional Tenant Improvements

      Must Take Space

      Expansion Space

      Base Rent Increases

      Chapter 9: Negotiating the Terms of the Lease

      Make a List of Things You Can and Cannot Live With

      There are Trade-offs for Everything

      Don’t Get Spoon-fed Their Negotiating Terms

      Don’t Step Over the Dollar to Pick Up the Nickel

      Dealing with Tenant Rep Brokers

      Request for Proposal (RFP)

      Retail Proposal (Sample)

      Office Lease Proposal (Sample)

      Industrial Lease Proposal (Sample)

      Chapter 10: Choosing Your Tenants Wisely

      Background Checks

      Security Deposits

      Letters of Credit

      Personal Guarantees

      Chapter 11: You and Your Tenant Are Now Married

      Show Your Tenants You Care and Appreciate Them

      Strategies for Keeping Your Property Leased

      Early Renewals as a Strategy

      Chapter 12: The Appropriate Tenant Mix

      Be Cautious When Choosing Tenants

      Retail

      Industrial

      Office

      Medical Office

      Multi-Family Residential

      Social Media Reviews

      Chapter 13: Think Branding

      There are a Number of Different Ways You Can Brand Your Properties

      Chapter 14: Other Important Issues

      The Importance of Standardizing Your Lease Document

      Make Sure You’re Not Violating Your Loan Agreement

      Treat Your Investment Property as Your Business

      Other Areas of Income to Explore for Your Property

      Office Properties

      Apartment Buildings

      For All Property Types You Can Generate Income From:

      ‘Value Engineering’ Operating Expenses

      Chapter 15: Cost Segregation

      What is Cost Segregation?

      What Types of Properties Qualify for Cost Segregation?

      Will Cost Segregation Put Me at Risk of an IRS Audit?

      Doesn’t My Accountant Already do Cost Segregation for Me?

      What is the Impact of a Cost Segregation Study if I Sell My Property?

      Things to Consider

      Chapter 16: 20 Lessons I Wish I Could Have Learned from the Start

      Chapter 17: 21 Questions to Ask Yourself and Things You Can Do to Jumpstart Your Leasing Efforts

      In Conclusion

      Acknowledgments

      Resources

      Websites

      Books

      Software

      Consultation Services

      About the Author

      The Due Diligence Handbook For Commercial Real Estate*

      Comments from some of the readers of The Due Diligence Handbook for Commercial Real Estate

      The Video Course and Certification Program

      Introduction

      I’ve been in the commercial real estate industry for over 30 years. And, during that time, I’ve seen the same mistakes being committed over and over again by people who invest their hard-earned money in commercial properties. Many of them fail to learn the fundamentals or certain critical and essential principles of leasing real estate investments.

      My objective in writing this handbook about creating value for commercial real estate is to help those owners and commercial real estate professionals discover the successful strategies I’ve encountered, learned, and practiced over my career. These are proven tactics, strategies, and tips that work in the real world of investment properties. I wish I had this knowledge when I was starting out. It would have saved me from much frustration and a lot of trial and error learning.

      I approached this book with the idea of giving investors who are new to the business of leasing or owning commercial real estate an overview, as well as a reference tool and foundation to build upon, so they could use it to refer to again and again. In it, you will learn how to avoid simple mistakes with costly consequences. You’ll also learn many essential tips and proven strategies I’ve learned and gleaned from other experts in their respective niches over the years to successfully get more leases finalized.

      For the more seasoned commercial real estate investors and professionals, my hope is to give them some of the insights that I have witnessed and experienced from being a commercial real estate broker doing tenant representation where I learned how many of the larger corporate tenants view their leasing objectives. Also, I will share valuable experience from my time as a landlord representative where I leased properties as a local leasing broker. I also spent time as a Vice President of Leasing for an investor who owned about 12 million square feet across the U.S, where I had to learn local practices and customs, as well as the ins and outs of the various markets such as Los Angeles, Dallas, Houston, Chicago, Orlando and Phoenix. Experiences learned during this phase of my life have also contributed to the contents of this book.

      In addition, as an owner/landlord/general partner I asset managed 350,000–square feet of office buildings in Houston during 2007 through 2010, in the worst real estate recession any of us have ever experienced. During this time, I managed to keep them over 82% occupied and added an additional $700,000 in net operating income.

      What this rounded experience taught me from working in the various markets is that, in general, the fundamentals remain the same, even though some of the nuances may vary from market to market. The idea is always to get the properties leased as soon as possible, at the best rental rates achievable, with the least amount of expense.

      This handbook will give you the best information I have learned from my experience. I also include information from other successful seasoned investors and professionals I’ve met during my career with whom I’ve had the pleasure of working with. You can pick and choose what fits your particular needs or property type. I made this book as concise as possible without sacrificing any salient information, so you have the most essential strategies and tactics without a lot of fluff.

      If it’s a legal advice book or specific lease provisions you’re looking for, this book is not for you. Although I do address some of these issues to give the reader an idea about how these can affect the value of lease structure and the property itself. There are other sources which can offer more comprehensive lists of provisions and their explanations/definitions. In fact, I offer recommendations under RESOURCES in this book. I also have included some sample lease proposals, as well as links to sample leases that are available on our website. These will give you a good overview as to how to get a lease started and how these leases are structured with the provisions in them. Finally, there are SAMPLE FORMS for a Tenant Application and Credit Check Authorization included, along with other useful forms which can be accessed and downloaded at www.impactcoachingsystems.com, under the RESOURCES tab.

      When I read for instructional purposes, I want the Cliff Notes version. In other words, I want the 20% that will give me 80% of the results I’m looking for and not a bunch of minutia with 30 to 50 pages of fluff that I have to sift through to find the helpful tips or key points. That is my purpose in structuring this handbook and the context under which it is written. I also include some examples and stories so that you can see how these work in the real world.

      If you’ve read my book, The Due Diligence Handbook For Commercial Real Estate you know what I’m talking about. The book is a #1 best seller on Amazon in commercial real estate books. I attribute its popularity to the fact that it cuts through to the meat of the subject and gives the reader the step-by-step instructional information needed to conduct due diligence properly

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