Top Traits of a Good Commercial Real Estate Broker

Posted on May 17, 2012 by admin

In our last blog we outlined the first three traits we felt a good broker should have.  As promised, this blog will continue on with traits 4-6.

4. Does not own commercial real estate.  Sure, as a broker we come across some pretty great opportunities to purchase or invest in local real estate ventures.  To us, this would go against our core value of “service.”  As we operate currently, we are able to devote our full time and resources into marketing our client’s properties or helping them find adequate business space.  If we were to own our own real estate, we may be pressured to spend more time marketing our own property.

5. Tech-savvy.  In today’s world people browse the Internet on their phone, unlock their car door from their app, and watch television on their iPad.  We understand that in order to get our client’s properties to the right audience we must embrace new technology and make our website, and thus property database, searchable, mobile, and accessible.  We spend time and money every month to increase our website’s search engine optimization so that our client’s properties are best marketed.  We also constantly seek new methods of communication such as our QR codes and text message call capture.  Besides for listing properties on the most common online databases such as LoopNet and CoStar, we use alternative databases as well like Craigslist.

6.  A written marketing proposal.  Just like any other written document, our written marketing proposal can be referred to time and again.  Not just by us, but by our clients so that they can see exactly what we initially promised when proposing to list their property.  Therefore, with each new listing we offer a written marketing proposal that is adjusted as need be depending on the success of each marketing venture.  For an example of our marketing proposals, feel free to email us.

Stay tuned for the next installment of “traits of a good broker.”

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The Top 10 Traits of a Good Broker

Posted on May 7, 2012 by admin
The Top 10 Traits of a Good Broker

So it may seem odd that a brokerage company put together a list of traits for a good broker…and trust us we are not trying to toot our own horn.  But the reality is, we are in this business every day, all day, so we see comparable professionals all the time.  We evaluate how they treat the transaction and their client so that we may apply their good traits to our firm, while perfecting their flaws for ourselves.

With that said, here are the first three traits of our “Top 10 Traits of a Good Broker:”

1.  Good communication.  Whether you’re a tenant looking for space or a landlord marketing your property, your broker should provide frequent communication of all activities.  For instance, as a tenant do you get updated lists of new properties to the market in your desired area?  As a landlord, do you receive weekly or monthly reports of all listing activity?  Does the broker communicate in your desired mode of communication (mail, email, call, etc…)?  O’Donnell Commercial applies a same business day callback.  Furthermore, our listing owners receive feedback after every showing and a routine report summarizes marketing activities, prospects, and qualified leads.

2.  Involvement within the community.  A good broker has a lot of connections that their clients can benefit from.  In order to grow these connections, a broker should be involved in the community either through professional organizations, charitable funds, or general business relationships.  These connections are even more beneficial if they have connections to real estate, such as economic developers, other brokers, and business owners or investors.  Kevin O’Donnell has sat on numerous boards throughout Kane County, with the current being his role as Secretary for Casa Kane County.  Additionally, we aim to have good relationships with city officials, have hosted numerous local broker events, and look at lunch as an opportunity to meet with bankers, business owners, and other professionals.

3.  Support staff.  While there are many good brokers out there who work solo, we believe having  a support staff is crucial.  Whether this be through a knowledgeable office manager who can handle basic listing questions, help with property marketing, or run the day-to-day activities of the company, or through a broker partner, some type of support is helpful.  O’Donnell Commercial uses a two-tiered support staff on all clients, both tenants and listing owners.  Through this model, we are able to respond to our clients quicker, as opposed to solo brokers who may be out of the office and not able to return calls for a week.  Additionally, we use an office manager and a marketing director so that our brokers can focus solely on their clients.

We look forward to our next blog where we’ll outline traits 4-6 of a good broker.

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Help your office go green to save the Earth…and money

Posted on April 30, 2012 by admin

 

How is your office "Green?"

Over the past decade, there has been a huge push towards corporations becoming “Green” or operating out of LEED Certified buildings.  We believe this concept not only will help the environment and our sustainability efforts, but will also saver our clients money in the long run.

With that said, here are a few tips to making your office more “Green!”

 

 

 

 

 

  • Turn off your computers and monitors overnight and on weekends.
  • Buy and Activate the “Energy Star” energy saving functions available on most computers and other office equipment. They are up to 52% more efficient.
  • Turn off lights when not in use.
  • Use motion detecting switches in less used areas
  • Open windows instead of using air conditioning where possible
  • Turn off your climate control when not needed
  • Do not buy bottled water.  Use a water filter if needed.
  • Give preference to locally manufactured supplies.
  • Install desk side recycling
  • Store electronic reports rather than paper reports
  • Avoid using FAX cover sheets
  • Use the double sided feature of your printer.
  • Reuse paper for note pads.
  • Buy only recycled paper.
  • Replace light bulbs with lower wattage or compact fluorescents.
  • Get flat screen monitors for your computers. They are more efficient.
  • Buy re-manufactured or refillable toner cartridges for printers and photocopiers.
  • Maximize the use of natural light in your space.
  • Insist on biodegradable and non-toxic cleaning supplies.
  • Printing Services Selection TheGreenOffice.com suggests that before purchasing printing services from a provider, make sure that the materials and practices they use are sustainable.  The Solid Waste Management Controlling Board has compiled the following list of recommended requirements for printers:
    • Vegetable-based and recycled (filtered) inks; avoid inks containing heavy metals
    • Recycled-content (30% minimum content) and tree-free blend papers; PCF – process chlorine-free is the best environmental choice
    • Alcohol-free printing processes
    • Solvents free of toluene and methylene chloride
    • Paper recycling and reuse programs
    • Workplace safety and accident reduction programs
  • Know Your Carbon Footprint; the amount of greenhouse gasses you produce.  Use the EPA’s Carbon Emissions calculator to obtain an estimate of your greenhouse gas emissions. They will also help you to explore what you can do to lower your emissions while reducing your energy and waste disposal costs.

The Green Office is an online office supply company that offers many of the same products as typical office supply stores, only these products are “Green” in nature.  Rather they are made from recycled parts or are less toxic, products offered by The Green Office can help your own office become “Green.”

For more tips, check out Harvard’s suggestions.

*Some information taken from http://www.officefinder.com/greenoffice.html

 

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Senior Housing Facilities 2012 Land Demand

Posted on April 23, 2012 by admin

Recently we stumbled upon an article on SeniorHousingNews.com outlining the consistency of senior living facilities and continuing care retirement communities (CCRC’s) regardless of the current economy.  While many industries have slowed, or even failed, during the latest recession, CCRC’s have remained strong and vital to the public.  We find this incredibly noteworthy considering the suffering the housing economy endured over the past five years.

“CCRC’s were impacted by the recession and housing market crash, as most seniors moving into communities need to sell their homes before doing so.  Occupancy dropped across all sectors of senior housing from the low 90s% to the mid 80s%,” states LeadingAge in their March 8, 2012 feature on the above named website.  This very low change in occupancy spurred only 12 CCRC bankruptcy cases of nearly 1,900 communities.  Think about this…less than 1% of the industry suffered dramatically and of that 1% only one CCRC was unable to fully refund their tenants any entrance fees.

As the housing industry starts to swing upward, senior housing occupancy is expected to increase as home sales are easier to come by.  With that said, SeniorHousingNews.com comments that, “Land acquisition and development will become critical in 2012 as competition for prime locations intensifies.”

Our firm is well versed in CCRC’s and has experience throughout the state assisting investors and organizations in their senior housing real estate needs.  Contact us today to start searching for land or a facility that fits your needs.

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Possible Issues of Mixed Use Developments

Posted on April 16, 2012 by admin

A Proposed Mixed Use Development in Naperville, Illinois

As promised, this blog will cover the possible issues of Mixed Use Developments.  To refresh your memory, a Mixed Use Development, in our perspective, is a real estate development that includes two or more sectors of real estate.  For instance, retail and restaurant tenants on the first floor and commercial offices on the second floor.  While many suburban cities are looking towards these types of developments, there may be a few drawbacks.

The most obvious issue is most likely parking.  Overall, these types of developments are going to need an abundant amount of parking, as well as a variety to accommodate the various tenants.  Retailers most likely prefer parking in close proximity to their establishment (ie: in front of their storefront), meanwhile residents of the development will probably want a secure, numbered parking garage that will always be available to them.  Furthermore, the mixture of these developments may cause parking problems during prime time usage.  On weekends and nights, when both residents are home and restaurants are at their keen performance, parking will be chaotic.

The second drawback pertains to residential/commercial developments where the success of the project depends on two different markets.  Many times, the residential market operates separately from the success of the commercial development.  This was most evident in the latest housing crisis where the residential development was hit extremely hard, while the commercial industry struggled less.  In a Mixed Use Developments where both industries will occupy space, a developer must ensure that each sector is equally successful.  In this situation, property management may be burdensome as the management company will have to be versed in each sector’s needs.

Finally, as commercial brokerage firm we believe image will be extremely important in leasing space.  A high-end financial services institution with multi-million dollar clients will most likely not want to be above a nightclub, etc…  In our experience we’ve seen a number of clients pass by the “best” deal dollar wise for a space that better matches their branding efforts.

In conclusion, both positives and negatives can be taken away from the Mixed Use Development concept…it just depends on the amount of risk the developer wants to absorb.  We are a fan of many suburban Mixed Use Developments and believe that with the proper planning, collaboration with the city, and appropriate leasing agent, these developments are great additions to any town.

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The Facts of Mixed Use Developments

Posted on April 11, 2012 by admin

First Street, St. Charles

Since the 1920’s, “Mixed Use” developments have been a key to downtown growth.  The thought behind the original idea is that by putting together two or more sectors of real estate (retail, office, and multi-family for example) traffic to this one destination will increase.  Furthermore, these developments aide already developed public transportation systems.  By putting retail store fronts underneath either offices or apartments, buses and trains can make(or are already making) one stop for passengers.  Lastly, retailers have assurance they’ll be successful as they’ll always have customers working or living above them…not to mention the great benefits of co-tenancy and their traffic.

A prime example of the mixed use concept is the First Street Development in St. Charles, where a variety of retailers and restaurants occupy the first floor while office users take space above.  It is almost guaranteed that tenants such as Wok N Fire and Il Giardano Del Dolche, the Italian bakery, benefit from the office professionals above via their lunch time traffic.  Meanwhile, when The Jeans and Cute Top Shop have a sidewalk sale, or when Ginger Root runs a marketing promotion, co-tenants possibly benefit from the foot traffic these specials bring in.

As demonstrated by the growing number of suburban towns revitalizing their downtowns, the Mixed Use concept is in full effect.  In addition to the benefits above, towns view this as “creating a local sense of place.”  Cities like Naperville, that are known for their downtown, constantly thrive and draw in new commercial tenants frequently as residents and guests are drawn to this defined area.  Additionally, these developments demonstrate use throughout all 24 hours of the day in the case where multi-family or hotel use are included, therefore making more use of one building.
In summary, Mixed Use Developments:

• Activate urban areas during more hours of the day

• Reduce auto dependence & promote public transportation

• Increase co-tenancy & success

• Create a local sense of place

 

Stay tuned for our next blog outlining the drawbacks of Mixed Use Developments.

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O’DONNELL COMMERCIAL REPRESENTS DERICK DERMATOLOGY IN SECOND LOCATION

Posted on March 20, 2012 by admin

SAINT CHARLES, IL (March 2012) -O’Donnell Commercial Real Estate, Inc. represented Derick Dermatology in the lease of space at 525 Congress Parkway in Crystal Lake, Illinois. Kevin O’Donnell and Susie Farmer of O’Donnell Commercial helped the growing practice secure nearly 7,000 square feet as a second location to their Barrington headquarters. Ownership was represented by Jim Magnaninzi of National Realty Network.

Dr. Amy Derick has been practicing dermatology since 2006 with the opening of her own clinic. Today, Dr. Derick sees nearly 22,000 patients based throughout the Chicagoland area. Featured services include both medical and cosmetic based dermatology. With this second location, she will be able to further her reach west.

O’Donnell Commercial Real Estate, Inc. is a full service commercial brokerage firm serving the western suburbs. The company offers tenant representation and product representation of office, medical, industrial, retail, land, and investment properties. For more information please visit www.odcre.com or call 630-444-0444.

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Broker Reputation is Important in Commercial Real Estate

Posted on March 12, 2012 by admin

When interviewing commercial real estate representation, it is important that the chosen broker be easy to work with and contact, is knowledgeable about the industry and chosen market, and be able to best market the property. However, a broker’s reputation in the marketplace should NOT be overlooked.

Commercial real estate is a very social field. Each transaction usually is handled between two real estate professionals. Whether this be broker to broker or broker to landlord, these two parties will be working together to complete the transaction. Often times, the same broker or landlord will represent multiple properties in the area, meaning that our firm will come across the same people time and time again.

With this said, it is easy to see why maintaining a professional, ethical reputation within the brokerage community is important. As a tenant, you would not want a broker whose reputation isn’t the best as this could lead to problems with transactions and overall communications. For instance, a broker who commits to a certain tenant improvement allowance but does not uphold this promise at the conclusion of the transaction, can be viewed negatively within the brokerage community. Although our firm would never steer a client, it is our duty to provide as much information about the property including any past transaction history that may affect the current transaction.

From a product representation point of view, having a broker that is well accepted within the brokerage community is vital. If a broker has wronged anyone in the past, fellow brokers may be less willing to work with them and thus less likely to bring them to represented property.

In order to find out if a broker is well accepted, prospective clients should ask for a variety of references. O’Donnell Commercial is happy to provide tenants, owners, landlords, property management firms, and even other real estate brokers as references. We are proud to maintain a strong reputation in the western suburbs as we know it leads to better transactions for our clients.

Please contact us today for a list of references!

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How to Find Individual Offices

Posted on March 8, 2012 by admin

Individual Office Suite

As a commercial real estate company, we often get calls for 2-3 offices equating to roughly 700-900 square feet. Although this would seem like an easy requirement, it is actually much more difficult than finding a 3,000 square foot office suite. Many times landlords do not build small office suites deliberately as the cost is quite high. For instance the distribution of HVAC for a unit that small plus the space the dividing walls requires, is not cost effective. Not to mention the intense management needed for smaller spaces, not only for day to day matters but monthly billing and administration.

Lately a few landlords with larger portfolios have designated their vacant second generation space for single offices. With a few minor tweaks these spaces can be transformed into private offices that share hallways, HVAC systems, exterior entrances, and common amenities such as conference rooms and kitchens.

In addition to this, Regus is an international firm that builds single office centers to accommodate small businesses, travelling executives, and off-site salespeople. This setup is extremely convenient as they also offer a full-time receptionist, top of the line phone systems, and brand new furniture for plug and play occupancy.

Our firm is happy to work with small businesses and their single office needs. We understand how hard it can be to find spaces that accommodate less than 1,000 square feet. Please contact us today so that we may help you find a suitable option.

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Boutique, Suburban Firm with Big House Tools

Posted on February 28, 2012 by admin

CoStar is a commercial real estate listing database that O'Donnell Commercial uses

When Kevin O’Donnell set out to create O’Donnell Commercial Real Estate, Inc. he immediately applied the tools into place that he had used at some of the nation’s largest brokerage houses.  Tools like CoStar and in-house research departments proved helpful in past transactions and would surely benefit his new clients in the western suburbs. 

From a product representation point of view, either representing landlords, owners, or developers, these tools help provide competitive pricing information, as well as knowledge on transaction points.  When advising clients on asking rates we go to CoStar and our in-house marketing personnel to better understand the market and what product is moving at.  Additionally, we organize our “comps” in such a way that we can easily discuss standard abatements, improvement allowances, and other talking points in specific areas.

When working with tenants the same information is helpful, however this time around we can advise our client as to the bottom line we should actually be negotiating for.  Without a knowledgeable broker, clients many not know how much abatement to ask for or what price to negotiate down to.  These tools, along with our great relationships with local real estate professionals, help us be that knowledgeable broker.

We advise tenants, buyers, owners, and landlords to explore the tools commercial brokers use and ensure they will be most beneficial to their own end goals.  If you’re interested in learning more about the tools we use or how we conduct business, feel free to contact us.  We’d be happy to educate you on the market from our perspective and provide you with a free building analysis or comp report.

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