COVID-19 and the Overall Real Estate Market

The COVID-19 Virus has made a giant impact on the health of people around the world. We encourage everyone to be vigilant and follow the guidelines in place to protect oneself. Not to minimize the health effect, these articles will be about COVID-19’s impact on real estate, which is our expertise. The stock and bond market is widely transparent on a minute by minute basis and we hope to provide a transparency into the real estate market.

What at first appeared to be a slow moving pandemic, snapped across our domestic world quickly to start the month of March.  Many of us faced choices on if our businesses would enforce work from home policies, and where our children would be educated and cared for during the school day.  These questions are still playing out and changing on a daily basis. 

The investment markets are in a state of flux. Stocks continue their up and down pace while investors try and get a sense of the next steps in the market. The same rapid movement cannot be said of the real estate market. By nature the real estate cycle is slower. It is a less liquid asset and it takes time to sell and have the market react to external factors. In place leases impact value, and those too take time and have long term. Finally the debt markets impact value, and again, that takes time to work through the system.

At our offices the reaction from users of commercial space have been mixed. Since the week of March 9, 2020 we have seen some folks pull back.  Some of them were expansion tenants, while others were user/buyers with new locations.  For each story of someone delaying plans there is another story of someone moving forward.

•         National users of space, with multiple leases expiring, continue their review to look at the longer picture on relocation choices. They are in the market.
•          Local users, with multiple businesses or divisions, are shifting their focus to those businesses less impacted by recent events that are in need of space. They are still in the market.

These examples may shift overtime, but they do illustrate the types of people who have businesses impacted by COVID-19, but remain in the market to find new lease space.

We will explore more of the investment real estate market over time, but the immediate reaction is, again, mixed. Some investors look at the dip in the stock market and assume that real estate should be at a discount as well, while others see a premium in the asset because of the volatility on Wall Street.  History has shown us that one week is too short of a time to take any meaningful conclusions away, because of the aforementioned speed of the real estate market. 

Certain sectors of the investment market will likely remain strong, such as those properties with apartments, grocers or medical practices. Services that are needed no matter the state of the economy. Additionally, the quality of the income stream is always important, but more so in this past week, as conversations regarding franchisee or franchisors signing of leases is becoming crucial.

This is the first of many articles we plan on distributing to our clients, customers and friends. We are all in this together, and we hope to empower you during this unprecedented time with our collective knowledge.

Investors Buying Office Space in Bedford NH

Bedford NH - NAI Norwood Group is pleased to announce two recent office sales in the Bedford NH market. 10 Chestnut Drive is a 13,690+/-sf two story office building off the busy Route 101 corridor comprised of a number of small, local businesses. According to the registry  of deeds it sold for $790,000. 116 South River Road Building B was a 7500+/-sf two story, steel framed, brick façade condo that sold in the prestigious Coldstream Office Park at 116 South River Road. According to the registry of deeds it sold for $870,000.

“It is clear that these sales are a testament that a Bedford business address continues to be highly desirable.” Noted Louise Norwood, Principal at the firm. “With so much new development in town, along with the low interest rates, the demand remains high.”

“Both of these assets were sold to investors.” Added Chris Norwood, President of the firm, “With an additional sale of a small condo unit earlier in the summer, this marks our third investment product sale in Bedford in the last 60 days. While the owner occupant market is strong, the proof is here that investors are still seeking sound real estate as diversification to their other investments.”

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 400+ offices and 7,000+ professionals, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

NTB Builds New Location in Nashua

NASHUA NH - NAI Norwood Group is pleased to announce the sale of 1.32+/- acres on Amherst Street in Nashua. NTB (National Tire and Battery) brought in their preferred developer to purchase the site with plans to build a new 7,000+ SF facility. John Hoben of NAI Norwood Group represented the buyer, and  Mike Tamposi represented the seller in this transaction. According to the Registry of Deeds the sale closed for $1,172,500. 

Through the NAI Global network,NTB was matched with John Hoben and NAI Norwood Group to assist them in growing their business in New Hampshire. John has been working with them directly for a few years and has completed several successful transactions.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

NAI Norwood Group Sells Land to Bluebird Self Storage

Hooksett NH – NAI Norwood Group is pleased to announce the sale of 3+ acres in Hooksett to Bluebird Self Storage LLC. Joseph Mendola, Senior Vice-President of NAI Norwood Group represented the Seller and Scott Frankiewicz of Keller Williams of Nahua Represented the buyer in this transaction. The closing price on the land was $725,000 according to the Registry of Deeds.

Bluebird Self storage is a major developer of self storage in NH. With sites in Greenland and Dover, Bluebird has other self storage projects in Bedford and Manchester, NH. This land acquisition is their newest location in the northern end of Hooksett, NH. It will be about 80,000 gross square feet of space once completed.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

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NAI Norwood Group to Represent the Former Granite Rose For Sale

Hampstead NH - NAI Norwood Group is pleased to have been selected to market one of New England's premier event centers, formerly operated as the Granite Rose. The 33,533 square building on 9.46 acres is beautifully designed with high quality finishes, beautifully landscaped grounds, and loads of extras. The location affords easy access to Derry, Manchester, Salem, the seacoast, and Haverhill, MA. The building can be repurposed for many other uses, including winery, brewery, distillery, church, medical facility, school, corporate offices, etc.

The C-2-zoned building was attentively planned and built with every amenity possible that one could think of - from the massive professional kitchen tied directly to the loading dock, to the two backup generators and three-story elevator, no expense has been spared. There is separate office space with a professional reception area, 1,200 and 600 amp electric service and parking for at least 130 cars. With an attractive new asking price the possibilities for this property are endless. Please call Pam Lynch at 603-533-9448 or Matt Bacon at 603-724-4554 for a full offering memorandum.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

How I Learned to Stop Worrying and Love Retail Real Estate

As we all know Radio Shack is now closing roughly 1700 stores across the nation, which has folks asking: Now where am I going to find that Co-Ax Cable to AV Cable Converter Kit? While many more folks are asking: What does this mean for retail real estate? Those who see the glass as half empty, see these closures of the harbingers of more closings for other retailers. More people are shopping online, pushing out the need for brick and mortar retailers and shrinking the retail footprint. However, we would argue that while Radio Shack does tell a story, it is not the Doom’s Day prophecy many fear.

As discussed in this forum back in September of 2014 (Resizing the Retail Footprint), there is a push for some retailers to shrink their footprint. Radio Shack was probably the lowest footprint it could go, and with none of their stores being in excess of 2000sf, real estate overhead was not the sole cause of the closures. Expenses to be sure are half of the story of operating income, but the revenue side is a large portion as well. Aside from cords and batteries, the hallmark of Radio Shack has always been phones, video games, cameras, MP3 Players, Walkman’s and of course old Dictaphones. Today your smart phone contains a huge chunk of the devices that Radio Shack had sold throughout the 1990's and 2000's.  

Now let’s get back to the retail real estate space. The need for retail real estate space has not changed but who fills the space has. The Wall Street Journal has reported that the Game Stop will be back filling 163 of the stores vacated by Radio Shack (click here for the article). So the reality is that the small Radio Shack will likely be filled by another electronics boutique but with a slightly different focus on the consumer products spin.

So what other tenants are out in front looking to expand and backfill? Grocers and food stores… Market Basket and Whole Foods are dominating the retail grocer expansion of the 2010's. Food store retailers such as Orange Leaf yogurt are expanding all over. These are retailers that cannot be replicated online. In that arena are gyms. Boutique fitness franchises are sprouting up. If you ever have a chance to talk to someone who is a member of Cross Fit, you will certainly find a “Rabid Fan”, which is why they are expanding in smaller retail chain and industrial areas.

As previously discussed in this forum, there are still those retailers whom we all think are going 100% online, but still do need bricks and mortar. Banks come to mind as a type of retailer that people may have expected to have moved more to online platform, yet branch banks are cropping up throughout the region as the landscape of the banking community continues to shift.

The lesson for today then can be summed up in the phrase “don’t believe the headlines”. Yes retail is shifting, so too are the tenants that occupy the space and the landlords that own it. And of course the brokers who live it each day. 

NAI Norwood Group Sells Land For a New Self Storage Facility

GOFFSTOWN NH – NAI Norwood Group is pleased to announce the sale of 4.6+/- acres of land located at 102 Mast Road in Goffstown for $300,000, according to the registry of deeds. NAI Norwood Group represented both the buyer, Mast Road Self Storage, LLC, and seller, Langley Trust, in this transaction.

This land was purchased by the buyer/developer to construct and operate a 61,250+/- sf two story state of the art climate controlled self-storage facility. The facility will have 46,250+/- sf of rentable space and 403 units. 21 units will be large units accessed from the outside of the building.

The developers are excited about this project as it will be the first fully climate controlled facility in the Goffstown, Bedford and West Manchester market. The facility will not have elevators, and each floor will be accessed at grade level for ease of storing. The facility will open in January 2015. It is between Goffstown center and Bedford and West Manchester center.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

Former Nashua Courthouse Back on the Market

This 28,621+/- SF asset is back on the market with a price reduction.

Click the link below to read Union Leaser's Avenues about the state building for sale.

Price dropped on downtown site of former Nashua courthouse

NAI NORWOOD GROUP SELLS 6,760 SF RETAIL AND OFFICE SPACE

Milford NH – NAI Norwood Group is pleased to announce the sale of 318 Nashua Street in Milford NH. The 6,760 sf commercial building sits on a half-acre not far from the Milford Town Center. The seller was represented by Perry Snow and Judy Niles-Simmons from NAI Norwood Group. The buyer was represented by Theresa Grella from the Bean Group.

Cardoza Flooring, LLC, the buyer, purchased this site to relocate his retail carpeting/flooring store from current Milford Oval location and increase size of the store.

According to the registry of deeds, the sale closed on August 12, 2014 in the amount of $315,000.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

NAI Norwood Group Sells 146,000 SF Flex Building in Manchester

Manchester NH - NAI Norwood Group is pleased to announce the sale of 1050 Perimeter Road in Manchester, NH to Brady Sullivan Properties. John Hoben and Chris Norwood represented the seller in this transaction. The 146,000 square foot flex building, located close to the Manchester Boston Regional Airport, sold on August 4, 2014. "We are excited to offer this unique flex building to our tenants," noted Charles Panasis, Director of Commercial Real Estate at Brady Sullivan Properties, "with its abundant parking and great highway access, it can be a great home for users of medical, office, flex or warehouse." The sale price was $4,050,000 according to the registry of deeds.

  

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

Expert: Market Basket threat may be illegal.

Market Basket issued letters to hundreds of protesting employees yesterday giving them until Friday to return to work or lose their jobs — a move that legally will be difficult to enforce, a labor expert told the Herald.

“An employer in this situation has to be very careful because no matter how this has been labeled, the rank and file employees are on strike, and strikers have certain rights, including the right not to be terminated for engaging in a strike,” said Keith H. McCown, a top labor lawyer at Morgan, Brown & Joy, LLP. “Even though there’s no union in the picture, these employees are withholding their services collectively and that is a strike.”

Continue reading the article from the Boston Globe here.

Eight Market Basket execs fired; employee rally set for this morning | New Hampshire Business

Anyone visit market basket over the weekend? The produce section was next to nothing.Wander the rest of the store and you'll see the shelves are emptying of the most popular items. When will this end? Another 8 employees were fired yesterday. The employees are still in an uproar.  What's next?

Eight Market Basket execs fired; employee rally set for this morning | New Hampshire Business

NAI Norwood Group
www.nainorwoodgroup.com

NAI Norwood Group Sells Mac’s Deli in Scarborough, ME

Scarborough, ME – NAI Norwood Group is pleased to announce the sale of Mac’s Deli and catering business. Pam Lynch of NAI Norwood Group represented the seller. The business sold for $55,000 on June 23, 2014 according to the Registry of Deeds. The sale did not include any real estate. Mac’s Deli is leasing space in the Scarborough Plaza.

“Mac's Deli is a well-established sandwich shop and catering business specializing in fresh, homemade food. The location was fully equipped making it a turnkey opportunity for the right buyer,” said Pam Lynch. Pam has 27 years of experience selling businesses and commercial real estate in Maine & NH.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

NAI Norwood Group Welcomes Bill Wagner to the Team

Portsmouth NH – NAI Norwood Group is pleased to welcome Bill Wagner to the Portsmouth team. Bill intends to use his expertise to help NAI Norwood Group clients reach their real estate goals, by leveraging his 35+ years of business ownership and consulting experience in real estate development in New Hampshire. Bill has developed a reputation for integrity, reliability, with a desire to accomplish goals for the client by providing professional guidance and advice through a high level of knowledge in the field.

Bill has experience in the real estate development process-from basic issues to the complex ideas and execution of plans, including the permitting process. He has real estate experience as a tenant, property owner, public servant, and has participated in the permitting and building of two office buildings at Pease International Tradeport and various other projects in the Seacoast area.

Bill’s community involvement includes: Past President of Portsmouth Chamber of Commerce, Past President of Seacoast Mental Health Center, Past Member of the Pease Development Authority, and Seven Term City Councilor of the City of Portsmouth (2 terms as Assistant Mayor). Bill is married with 5 children and 11 grandchildren.

We are looking forward to working with Bill as he continues his career by providing the services needed for his clients to succeed.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 45+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000 or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.

N.H. businesses pleased with Turkey trade mission

Have you read about this? I read about it in the BIA newsletter the other day and didn't actually give it much attention. Now I'm seeing it all over our local news. What are your thoughts about the Turkey trade mission?

Click here: N.H. businesses pleased with Turkey trade mission

NAI Norwood Group
www.nainorwoodgroup.com

Best markets to become a landlord | Project Economy - WMUR Home

There are so many articles floating around the state in regards to the real estate market today. Go to just about any news website and you'll find that it's another all time low for mortgage rates or the best place to pick up foreclosures. I hadn't come across this one in a while. Is it time to become a landlord? According to this article it just might be.

Best markets to become a landlord | Project Economy - WMUR Home

Search here to find our current multi-family listings. Your next investment could be just around the corner.

NAI Norwood Group
www.nainorwoodgroup.com

How Economic Revitalization Zones Work For You

Recently the town of Bedford looked at the Economic Revitalization Zones (ERZ) that are administered by the State of New Hampshire. This year the State’s largest city, Manchester, is looking at their ERZ foot print and seeing if expansion should be in the cards. 

The ERZ is a tax credit program that is administered by the State to help foster growth in areas that are in need of economic assistance. While the program is nothing new, it has been around for years, the word is just getting out. A simple example of how it can work would be that a company moves into a vacant building that is in an ERZ. They spend money to improve the building for their use as well as bring in new hires. 

Based on the improvement amount and the number of jobs created this potential company could get dollar for dollar credits at the state level. Because of the subtle details of the program it is not a linear function. Anyone who has a potential project should contact the Department of Resources and Economic Development to really understand if the project qualifies as well as the savings potential. This raises the important issue that the ERZs are lot specific. Just because you and your neighbor share the same zone as it relates to the town (Commercial, Industrial, Performance) does not mean you both share the same as it relates to ERZ. Only the state can verify if your lot is within a zone. 

As the City of Manchester looks to expand its use of the ERZ other towns and cities throughout the state may as well. It is a great tool as business owners look to expand and grow their businesses.

NAI Norwood Group Sells DOT Property in Windham

Windham, NH – NAI Norwood Group is pleased to announce the sale of 41 Range Road in Windham. The 11.7+/- acre property consists of multiple buildings totaling over 12,000 SF. The sale closed on May 10, 2013 for $1,250,000 according to the Registry of Deeds.

 Judy Niles-Simmons and Chris Norwood of NAI Norwood Group represented the Seller, the State of New Hampshire Department of Transportation, in this transaction.  Buyer was represented by legal counsel.  NAI Norwood Group was pleased to be chosen to market the property for NH DOT.

The property, home of Delahunty Nurseries and Florist, was purchased by the state as part of the project to widen Route 111. The town of Windham has seen much improvement to the traffic flow along Route 111 since the DOT project was begun.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their 40+ years of dedicated local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603)668-7000 or 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.

NAI Norwood Group Brokers Lease at Exeter Commons

Exeter, NH - Chris McMahon of NAI Norwood Group's Portsmouth, NH office has leased 6,000 +/- SF of retail space to Exeter Paint and G&N Flooring by Design at Exeter Commons Shopping Center on Portsmouth Avenue in Exeter, NH. Exeter Paint and G&N Flooring By Design, the newest additions to Exeter Commons, are both locally owned businesses which have shared retail space on Portsmouth Avenue in Stratham for the past 10+ years. When Abba Medical Supply decided to close their large store at Exeter Commons and downsize, Chris saw the perfect opportunity for these two complementary businesses to occupy the vacant space and add to the shopping centers unique tenant mix. Through a creative approach, the Tenants and the Landlord, REL Commons, LLC were able to put together a great space at Exeter Commons for both Tenants to share and operate independently. Both businesses are expected to open at Exeter Commons by April 1st, 2012. For more information about Exeter Paint please visit www.exeterpaintstores.com and for more information about G&N Flooring by Design please visit http://www.gnfloorbydesign.com. Chris McMahon from NAI Norwood Group is the leasing agent for the Landlord, WJP Development at all of their New Hampshire shopping centers.

NAI Norwood Group is an affiliate of NAI Global, the world’s leading managed network of independently owned commercial real estate brokerage firms.  Through this network of 355 offices in 55 countries, NAI Norwood Group is able to leverage their strong local experience around the world. With our extensive background and strong local contacts, we are able to assist individual corporations in negotiating leases, sales, business brokerage, investments, relocation, site selection and development. For more information please visit www.nainorwoodgroup.com. Or contact one of our offices: 116 South River Road, Bedford, NH 03110, (603)668-7000 or 100 Market Street Suite 200, Portsmouth, NH 03801 (603) 431-3001.

Increasing Cash Flow in a Declining Lease Market

INCREASING CASH FLOW IN A DECLINING LEASE MARKET

By Brian O'Brien

Times are tough, lease rates are trending downward. It is imperative that commercial property owners look for non-traditional ways to keep your properties performing at their peak maximized value. Here are a few tips to potentially add value without necessarily increasing rents:

Market Review: Re-examine your local market and get ahead of potentially declining market. Find out the most up to date comps in your market area to detect if there is a declining trend. You may want to re-negotiate with existing tenants early then waiting for their current leases to expire. Tenant retention is extremely important in a challenging market. Vacancy is expensive, not only are you potentially losing income stream but you are picking up additional operating expenses, tenant improvement dollars, and leasing commissions. “RETAIN IS THE GAME”.

Investigate a tax abatement: Is your property assessed accurately for the current market conditions? Don’t wait for a municipal Assessor to act to lower your assessed value, probably not going to happen. In most cases the Assessors are not working off current market information and it is important to keep abreast of your real estate taxes on an annual bases. A proper tax abatement specialist may be able to know only get you relief in a current year but may also go back to a previous year and years going forward.

Cost Segregation Depreciation: If you paid approximately $750,000 or more for your property you may realize significant savings and/or rebates through accelerated depreciation tactic called Cost Segregation Depreciation. Cost Seg is a form of depreciation where the components of a building are analyzed and broken down by individual depreciation schedule vs. standard straight-line depreciation method. The theory behind cost seg is that different building components have different life cycles. Carpets, HVAC equipment or moldings may have 7, 15 or shorter life cycles that traditional bricks and mortar. Thus, the property owner may accelerate the depreciation leading to significant rebates and or expense deductions, increasing your depreciation and increasing your after tax bottom line. Firms specializing in cost segregation can advise a property owner if it is feasible to do so.

Building Maintenance and Operating Cost Review: Have you re-bid your vendors lately? Have you explored new ways to operate your building more efficiently? Is your building energy efficient? Are there programs from your utility companies or tax incentives to upgrade your mechanicals to better energy efficient equipment? Now is the time to a conduct a top to bottom review of your building expenses and see if you r leaving anything on the table by not running your property at it’s maximize efficiency.

Financing: Interest rates are at historic lows. It is time to review your financing. You may be able to get a better rate, stretch your current amortization Schedule for better monthly cash flow. Reassessing your current financing for not only your interest rate but additional term and conditions could be another way to maximizing your bottom line.

These are 5 quick points a property owner can take, to ensure they are maximizing cash flow.