Do Not Make These Common Commercial Real Estate Errors

Posted on August 6, 2021 by bafcorp20

As a commercial proprietor, it is likely that your number one objective is to increase your bottom line. So, when it comes to procuring new commercial real estate, it is important to make the right decisions in order to protect your investment and your future success as a developer. Continue below to learn the top commercial real estate mistakes that you want to avoid at all costs, and who to trust for turnkey commercial construction and general contracting in central Indiana.

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Commercial Real Estate Mistakes to Avoid

When acquiring new commercial real estate, you want to do all that you can to get the best deal and the best space possible. One way to get on this path of success is to ensure you are avoiding these common commercial real estate mistakes:

Doing it Alone

You have been a successful commercial proprietor because you know when it’s necessary to delegate duties and when to incorporate other useful minds and hands into your operations. When it comes to commercial real estate, the same theory applies. You don’t want to fly solo with commercial real estate procurement and development. Consult with a Central Indiana commercial construction team for personalized advice on obtaining the best possible space and deal for your company or business objectives. Also consider consulting with tenant brokers, financial advisors, accountants, and other professionals who can ensure you are equipped with the right knowledge to make the best decisions for your business.

Ignoring the Law

Although you might not mean to ignore the law, it is very common for commercial proprietors and developers to forget check the local laws and building codes in their area. Don’t make this common mistake. Instead, work with your commercial contracting team to educate yourself on all of the local zoning laws, building regulations, and building codes. After all, you don’t want to sign a commercial lease only to find out later that your industry is not permitted to operate in that particular building or space. Keep in mind that just because a landlord is willing to rent to a commercial tenant does not mean that your company can operate there. Not all landlords are up-to-date on all of the changing laws, amendments, and rewordings of local building regulations and ordinances. So, it is up to you to do your due diligence and team up with a trusted Indiana commercial construction company to avoid this common error.

Signing the Lease Too Quickly

When procuring new commercial real estate, you never want to sign the commercial lease As-Is. It is important to always have a commercial lease reviewed by an attorney as well as a trusted central Indiana commercial construction management team to ensure that you are getting the best deal possible. Keep in mind that the first version of any commercial lease is a working document and will always be in favor of the landlord. So, be repaired to negotiate some additional terms and conditions into your lease; you have the right to do this. Be sure to review relevant beneficial clauses, such as subletting rights or the right of first refusal.

Forgetting to Check the Local Infrastructure

A common mistake made among commercial proprietors who are obtaining new real estate is forgetting to check the local infrastructure. For instance, you don’t want to get stuck signing a commercial lease or purchasing a commercial space only to find out later that there’s not enough parking outside for your staff or guests. Mistakes like these could have a major impact on your bottom line. Be sure to check out the local traffic patterns, available public transportation options, highway exits, local retailers and restaurants, and anything else that will have an impact on your customers, clients, or employees.

Have you just acquired new commercial real estate, or interested in finding a new commercial space? Contact BAF Corporation at 317-253-0531 for superior commercial construction services in Indianapolis, Indiana. From space planning and permitting to pre-construction, remodeling, build-outs, conversions, and much more, we are a full-service commercial construction company serving clients all throughout the state.

You Should Also Like:

Why is Commercial Real Estate Market Space Listed as Class A, B or C?
Factors to Consider Before Signing a Commercial Office Lease
What is a Build-to-Suit Commercial Lease?

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Hire a Commercial General Contractor With These 4 Interview Questions

Posted on December 23, 2020 by bafcorp20

As a real estate proprietor, hiring a general contractor for new commercial build is one of the most vital phases of your entire project. Choosing the right commercial general contracting team is the ultimate deciding factor between conventional results and exceptional results. Your business and have a bright and successful future simply by appointing the right commercial construction company. But how do you find the right commercial general contractor to work with? Start by asking these 4 interview questions.

Indiana Commercial Construction Contractors 317-253-0531

Commercial Construction General Contractors

It is true; there are literally thousands, if not hundreds of thousands, of commercial general contractors to choose in Indiana alone. But keep in mind, not all commercial construction companies are alike. It is essential that you choose a commercial general contractor who has extensive experience and a long list of credentials, including proof of successful track record with past clientele. In order to find a commercial construction general contractor that is worthy of your project, it is necessary to ask the right questions. That’s because the answers to these questions will confirm whether or not they are an authority in the commercial construction industry, and retain the proper qualifications and resources to perform the level of work you expect.

Here are four commercial general contractor interview questions to start with:

❶ What is Your Commercial Construction Background?

There are commercial construction companies that specialize in certain types of builds or general contracting services, while other companies operate as a comprehensive, full-service solution. Aim to hire a commercial general contractor who has specific experience in the type of build you require for your business. For instance, if you are building a new medical facility, it is wise to choose a commercial construction company who has a proven track record of the success in the local healthcare construction industry. Similarly, if you are franchising your business, and wish to expand locations throughout a particular region, look to hire a commercial contractor who has experience in franchise construction.

❷ Can I See a Portfolio of Your Past Commercial Construction Projects?

A well-established and reputable commercial construction company will not let you ask this question first. That is because reputable companies want to show off their work to their clients right away as proof of the scope of their skills and capabilities. If the commercial general contractor says they are not able to show you any pictures or evidence of their past commercial construction projects, it is not a good sign. A good commercial construction contractor will want to show you their portfolio if there probably was good.

❸ What is the Expected Timeline of a Project Like Mine?

Getting the question of time out of the way upfront is always wise when it comes to interviewing a commercial contractor. Any kind of commercial construction work will experience unanticipated delays or setbacks; it is inevitable to a certain point. However, they are very prone to experiencing setbacks that could have very well been avoided. These kinds of delays cost you money. But a good commercial general contracting company will already have a semi-detail projection of how they expect the timeline to look for your specific commercial construction project. This lets you know they are organized and approach the commercial construction process in a streamlined and cost-efficient manner.

❹ Is Your Bid an Estimation or is it a Fixed Amount?

Reputable and well-established commercial construction companies have superior, internal knowledge of the industry, as well as long-standing relationships with subcontractors, wholesalers, and suppliers. These advantages are also beneficial to you as the client because they allow the general contractor to give you a very close estimation of how much your construction project will cost. Although they still give an estimate, the fixed costs within the estimate should not change, which prevents you getting hit with massive, unexpected costs during the construction process.

Your Certified Commercial General Contractors in Central Indiana

Contact BAF Corporation at 317-253-0531 for trusted commercial construction general contracting services in Indiana and its surrounding locations. Our skilled and experienced commercial general contractor teams deliver a streamlined process that meets all defined engineering and design specifications, procurement, schedules, and budgets. We serve all corporate, commercial, and industrial industries in Indianapolis, Indiana and its surrounding districts. Call today to request free information or to schedule a consultation.

Advice for Selecting a New Office Location

Posted on November 30, 2020 by bafcorp20

Although online “influencers” and millennial moguls might insist that all you need for a successful new office location is a space with a little character in a trendy neighborhood, there is much more to commercial real estate leasing than just that. Take it from the experts in commercial space planning and preconstruction who know exactly what it takes to find the perfect new commercial site that meets all current and future business objectives for owners.

Continue reading to learn some of this professional advice, and where to get customized commercial space planning assistance you can trust.

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How to Select a New Commercial Location

Choosing a new commercial site is not as easy as picking out the best building in the biggest city in your state. In fact, the process is much more intimate than that, as there are several specific and personal variables that must be considered in order to make the best selection. Not only should you take into consideration your own business objectives and personal preferences, but you should also factor in your customers’ and employees’ needs. By balancing all of these difference variables, you can place yourself on a promising path toward finding the perfect fit for your new commercial location.

Factors to Consider for Commercial Site Location:

► Community Reputation. Is the neighborhood geared toward a specific industry? Are other businesses doing well? Or are there many businesses choosing to not renew their leases? Is the crime rate high? How is the accessibility in and out of the community? What are the average traffic conditions like? Is it close to other places you will be doing business or entertaining clients? Does it have many places for shopping, meeting, and dining?

► Employee Amenities. Is the new area easily accessible to your staff and/or clients? Are there nearby shopping centers, restaurants, and similar consumer amenities for them? You see, staffs tend to be more productive when they are happier. Being able to visit a restaurant or run errands on their lunch hour provides them with a level of convenience that makes them happy, which can be profitable for business owners.

► Wi-Fi Coverage. It is important to think about your office’s technology needs. How much wi-fi coverage does your new office need? Is there plenty of wireless coverage? Would you require a wireless booster for sufficient wi-fi coverage? Does the new area have adequate cell phone tower coverage?

► Accessibly. Does the location have highways, interstates, and exits that make it easily accessible to both staff and clients? What are the traffic conditions usually like? Is there adequate parking for employees and customers? Is there a fee for parking? Are there public transportation options? Is the city or government planning any upcoming road construction that would impact your business?

Once you have considered all of these factors, you can better narrow down a selection of listings with professional commercial space planning and permitting services. Talk to a local and trusted commercial construction company who specializes in helping business owners with real estate development. They can even help you understand the factors to consider before signing a commercial office lease, which is an entirely separate but equally important aspect of choosing a new commercial site location.

Commercial Space Planning and Preconstruction in Central Indiana

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and preconstruction services in Central Indiana and its surrounding locations. Our skilled and experienced commercial general contractors serve all corporate, commercial, and industrial industries in Indianapolis and all throughout the state. Call today to request free information or to schedule a consultation.

3 Approaches to Estimating the Market Value of Your Commercial Property

Posted on October 23, 2020 by bafcorp20

When you are a commercial real estate owner who is considering the idea of selling your asset, your first though will be its value. How much is your commercial property worth on the current market? Well, there are various factors that influence the market value of a commercial building, so generally, a multivariate approach is ultimately relied on for an accurate assessment. But calculating a commercial property’s total worth doesn’t always need to be accomplished by applying more than one methodology; often times, one method works well over all others. The three common methods used to evaluate the market value of commercial real estate include the replacement cost method, the income method, and the market value method.

Continue reading to learn how each method works, and what you can do to increase your building’s value before listing it on the market.

Space Planning and Tenant Improvements 317-253-0531

How Commercial Real Estate Defines Value

The commercial real estate market does not shy away from directness when it defines value. Basically, value is characterized as being the most realistic and probable price that a commercial property could realistically gain in an open, active, and competitive real estate market, when the business deal is handled reasonably, intelligently, and with integrity, by both the purchaser and seller.

3 Common Methods of Estimating Value of a Commercial Building

► The Replacement Cost Method

The replacement cost method operates under the suggestion that an advised buyer should pay the same, or less than, the cost of a hypothetical replacement property that retains equal utility. Under this estimation principle, a buyer would create the data of an equivalent property that is utilized optimally for the purpose of financial gain. Certain adjustments can be made to the replacement cost formula to further exact the sum, such as depreciation, economic obsolescence, tax credits, and more. This method is often used when there are no comparable commercial properties on the market, nearby.

► The Market Value Method

Also known as the comparable approach, estimating the real value of a commercial property using the market value method is one of the most direct and accurate ways it is done in the real estate world. This principle is applied by identifying similar listings in the commercial real estate market that are equivalent to the property under evaluation. A full analysis is done equating the similar sites to the one in question, and the data derived would be used to make a final determination of comparable value.

It is common to incorporate certain variables into the market value formula to make adjustments for comparable value, such as a property’s age, condition, future expected costs and gains, tax policies, land-to-building ratios, depreciation, and similar real life factors that impact the sale. Basically, the total price a commercial buyer is willing to pay for a property equivalent to the one being assessed is the real market value of that property.

► The Income Method

The income method is another common approach to assessing the market value of a commercial property. Using this method, a property would be valued by identifying its current value, and to what amount that current value will benefit the proprietor in the future in terms of income. Net operating income is considered future benefits in the commercial real estate market, and that factor is what ultimately determines the total value of a commercial property when using this method. Under this principle, an informed buyer should expect that the commercial property will generate its current operating income for the foreseeable future. This method of market value analysis is typically applied for properties that generate income, such as hotels.

Commercial Space Planning and Remodeling Can Increase Your Property’s Value

A commercial space planning contracting team knows how to plan and design your business from the ground up in a way that will promote ongoing future success and profitability. By combining all benefits of commercial space planning service, you ultimately achieve more successful and steadfast business growth.

Tenant Improvements for Existing Commercial Spaces

For spaces that are already built and designed, tenant improvement work can come in the form of build-outs or renovations. Most businesses looking to lease a new space will opt for prebuilt options. In this case, the existing design might not work for them, which is where TI work comes into play. Before a tenant takes over the lease on an existing space, renovations can be made to customize the property to meet the exact needs of the business.

Moving Business Locations in Indiana?

Trust Our Commercial Space Planning Contractors to Maximize Your Savings and Earnings

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and permitting in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors deliver a streamlined construction process that meets all defined engineering and design specifications, procurement, schedules, and budgets for your commercial office space or business. Call today to request free information or to schedule a consultation.

Why is Commercial Real Estate Market Space Listed as Class A, B or C?

Posted on May 29, 2020 by bafcorp20

The commercial real estate market often assigns a specific class to leased spaces. Such spaces are listed as either Class A, Class B, or Class C. If you are on the market to lease a new commercial property, be sure you understand the difference between each type of space class before you sign the contract. This will help you predict how the leasing terms might affect your business’s operations or overall success.

Continue reading to review some details regarding all three classes of commercial real estate, and where to get the best industry advice on commercial space planning.

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Class A

Class A commercial real estate is usually the higher end of the market. These are properties that retain the highest quality attributes. Such attributes typically include factors like location, local public services, surrounding infrastructure, building finishes and features, and even the competence of the property’s management group. Common areas where you will find Class A commercial real estate are city centers, business districts, suburban business parks, and urban marketplaces.

Although Class A space is more catered to higher profile tenants, as well as national or regional companies, they can also be well-suited for local businesses. Keep in mind, this is the highest-priced type of commercial real estate. For this reason, many business owners lease this type of commercial space.

Class B

As you can imagine, Class B commercial real estate is much similar to Class A, but just a step down. Several Class B properties are simply older Class A properties. In other cases, a commercial space might be listed as Class B because it offers less amenities than a Class A space, or its location is at the edge of areas like city centers and business districts. Additional areas that typically have Class B commercial spaces include high-end strip malls, outdoor malls, and smaller office complexes.

It is very common to turn a Class B space into a Class A space with the right commercial space planning and general contracting services. Compared to Class A, Class B properties come with a more lenient price tag. In fact, they are well-suited for those who want to open a studio space.

Class C

Class C commercial real estate is on the lower end of commercial space. It is generally the least preferred type of commercial property to lease. These properties are usually located in run-down areas of town, surrounded by urban and suburban markets. Very few Class C spaces are turn-key, so although they are the cheapest commercial real estate to lease or buy, they will most likely need extensive renovation, which costs money.

Because of their poor locations and lack of profitable amenities, Class C commercial properties are not well-suited for many types of businesses and industries, especially luxury businesses like Pilates studios and esthetician spas.

Indianapolis Commercial Space Planning and Construction Professionals

Contact BAF Corporation at 317-253-0531 for trusted commercial space planning and construction services in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors serve all corporate, commercial, and industrial industries in Indianapolis, Indiana and its surrounding districts. Call today to request free information or to schedule a consultation.

Top Commercial Real Estate Technology Trends Today

Posted on March 5, 2020 by bafcorp20

Technology has grown so much over the years that, today, it has become ingrained as a regular part of our everyday lives. It helps us to be faster, smarter, and more efficient, all of which saves us both time and money. For these reasons, all sorts of industries are working more and more each year to keep up with the growing technologies and incorporate them in their business’s operations.

One such industry that is seeing monumental success with this is commercial real estate. If you are a commercial real estate proprietor who is interested in learning how incorporating innovative technologies into your design build scheme can render higher success for your business, you are already on the right track toward success.

A good place to start would be to review some of the top commercial real estate technology trends of today. Continue below to get started!

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Current Technological Applications for Commercial Real Estate

There are various technological trends that are changing the world of commercial real estate today. However, choosing the right applications for your design build or remodel is the key to unlocking the benefits they deliver. Not only can better technology increase traffic, enhance security, and improve efficiency, it can also secure higher profitably and long-term success. Right now, the most popular and well-acknowledged technologies in the commercial real estate industry are IoT’s, AI, drones, smart sensors, and even virtual reality.

Internet of Things (IoT)

One of the most impactful technologies introduced to commercial real estate recently is Internet of Things (IoT). Integrating IoT into your building management system can improve your building’s performance and consumer experience. It can automate certain office functions, including analytics, automated marketing, and even client support. Internet of Things (IoT) achieves these tasks by using sensor-generated data to learn and adapt to the environment.

Drones

Drones are not just for recreational use anymore. In the commercial real estate industry, drone technology has a lot to offer both user and proprietor. For the most part, drones are used among owners and stakeholders to collect data for analyzation. However, they are also used among real estate agents to deliver a more realistic user experience for online listings, brochures, social media ads, and websites. Drones can even be used to implement building inspections.

Smart Sensors

If you want a smart commercial building, you need smart sensor technology, which senses and records data on various matters. This type of technology is generally integrated for the purpose of enhancing safety and security. However, it is also used to improve a building’s efficiency by monitoring environmental changes like light, humidity, and temperature, all in real time.

Virtual Reality (VR)

You might think virtual reality technology doesn’t have a place in commercial real estate, but thousands of proprietors would strongly beg to differ. Virtual reality (VR) is being incorporated into many commercial builds for the purpose of improving user experience and increasing traffic. VR mostly comes in the form of virtual tours, which allows clients to clearly view the property as if they are really there, without having to travel. This saves both time and money. VR can also be applied to websites and social media accounts to widen a listing’s audience and potentially gain better leads for leases and sales.

Commercial Real Estate Builders You Can Trust

Contact BAF Corporation at 317-253-0531 for trusted commercial construction and design build services in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors serve corporate, commercial, and industrial industries in Indianapolis, and throughout Central Indiana. Request free information or to schedule a consultation, anytime.