No Matter – It’s What’s in the CONTRACT!

Posted on January 10, 2018 by G B Hardee

ContractsSo you’ve signed a contract for the sale of real property and everything seems hunky–dory, and then suddenly … it isn’t!

Many, many times I hear parties to a deal talk about what’s fair, or rather what’s UNFAIR, about the circumstances of the deal they’re in.

Trust me, all that pertains to the deal is in the CONTRACT, and the disadvantage of signing an “innocuous” contract is, it is only the contract’s terms that dictate who gets ahead in the deal and knowing what to look out for depends on what side of the deal you’re on.

For example;

Due Diligence – What’s Involved?

Most contracts have a negotiated period of time where the buyer can take a free look at the deal, and if they walk away during this period they get their negotiated earnest money back.
uturnLet’s say you are buying an office condo; you really like the location and the price, and you’ve decided you could make a little extra by leasing out part of it, then, during your negotiated (30 day) free or due diligence period you find out the the county is raising property taxes and there is a 5-year plan to widen the highway which would mean new medians would force half of your clientele to make u-turns to get to your business, and this is too much to bear. If you are in your 30 day window then you have options, but if not, you can only walk away by forfeiting the earnest money, which is often as high as 5.0% of the deal.

A Financing Contingency

   This is a clause that says that if you can not get the deal financed you can walk away unscathed all the way to the end of the deal. …… WOW!Don’t have it, … you’re upstream without a paddle!A further caveat to financing is knowing that if the property appraises low, the price would need to adjust in your favor in order to get financed, AND, if the property appraises for more than the contract price, then you or your broker has discovered an instinct for finding the bargains.

Planning Approval
approved
   Suppose the location is ideal, no suitable building was found and you decide to build, … then zoning and plan approvals should be negotiated as part of the contract to allow for this to take place and we’re talking 180 – 360 days depending on local government.

Are The Conditions Enduring or Limited?

   You’re selling and you know that the buyer needs financing and plan approval and it appears to you that they are good people and eager to close this deal with their statement that they plan to open for business within 180 days AND you allow for financing, zoning and planning approvals.Now you are 210 days in and all you’ve heard is that the first bank has looked deeper into to buyer’s history and refused them, but, they are not only undeterred but are already speaking with a second bank, AND the planning committee didn’t receive all it needed for their meeting last week and the next one is a month away.

Feel a little misled? Let’s take a look at the contract and see if you limited the financing to 180 days andGorilla the planning approval to 270 days, and if so, then you as the seller can look forward to a close or minimally receiving your negotiated earnest money, but if you didn’t you are now bound to what we call enduring conditions, and to the buyer’s advantage,  YOU CAN”T GET OUT OF THE CONTRACT!We’ve represented both. For our buyers we’ve passed enduring conditions on to an unsuspecting seller, and for a seller, we never except a contract without limitations.

Make sure you have a good agent who can help you, no matter which side of the deal you are on.

As always we’re pulling for you!

 

Greg Hardee

gbhardee@charlottecommercial.com
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Charlotte Continues to Redevelop

Posted on October 25, 2022 by G B Hardee

We as Realtors essentially promote the highest and best use of a property, helping it along in its market cycle, including;

  • Their original use; like a house or an industrial building
  • It’s adaptive use: like turning a house into an office/retail use or an industrial site into a showroom, or a hospitality use.
  • Or redevelopment: meaning, improving the current building is too costly to repurpose and the value is basically in the land.

Understand, that to be viable, these options must be …

  • Legal / meaning within the limits of current code.
  • Physically Possible / according to zoning ordinances and complying with building codes.
  • Financially Do-able / The numbers have to work in terms of costs and profitability, and finally
  • The Most Productive Use / meaning the best current use in the life cycle of the property.

Take a look at these recent re-uses in Charlotte.

The Gold District / Right next to Southend, where every piece of ground is being redeveloped into Muti-Family(MF), and bordered by Morehead, Mint, South Tryon Streets, and West Blvd., these industrial properties have re-emerged as small businesses including restaurants and breweries.

The Freedom Drive / Morehead St. Corridors / At the corner of Freedom Dr. and West Morehead St. sits Pinky’s Roadside Grill.

Freedom Dr. Morehead St.

Opened in 2010, this successful business gave permission for others to see themselves in the same area; including lots of adaptive and mixed-uses, like restaurants, offices, apartments, and specialty shops.

And finally,

Steele Creek / Located in the southwestern part of Mecklenburg County and starting at roughly Tyvola Rd., where South Tryon St. and Hwy 160 are both far apart and finally converge, some 18 miles later, this area both has, and continues to transform, as once farmland and forgotten river-side land are converted into oases of multi-use lifestyle and future lakeside centers.

As always we’re here to help!Greg Hardee

gbhardee@gmail.com
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Charlotte’s Ongoing Light Rail Plans

Posted on March 4, 2021 by G B Hardee

This is some kinda’ town we have here; where our weather is gentle, our zest unstoppable and we have a future barely dinged by COVID.

So it is with CATS, the Charlotte Area Transit System, that their plans for more rail remains firmly on-track.

A high-speed train from Charlotte to Atlanta, light-rail from north in Iredell County to Uptown, from southeast Matthews heading west to Charlotte Douglas Airport and into Gaston County and from the former Eastland Mall in the east running past West Charlotte’s Jonson C. Smith University.

Folks along the northern route have a petition drive in the works promoting their portion. And WCNC TV has a quick read report here.

With well over 100/day moving here, this git’er-done town has a penchant for moving forward.

We’re pulling for you,

C h a r l o t t e C o m m e r c i a l R e a l E s t a t e, L L C

gbhardee@charlottecommercial.com

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Crispy or Soggy Take-Out, It’s All in the Packaging.

Posted on May 13, 2020 by G B Hardee

Over weeks of sheltering-in-place and committed to supporting our local restaurants, I’ve turned into a bit of a cynic lately, becoming nearly despondent with soggy take-out and overwhelmingly surprised when I find my meals are just what I’d expect when dining in, crispy.

We say, well take-out is take-out, so what’s the difference?

It’s the PACKAGING;

  • A styrofoam box sweats, making food soggy, while
  • Cardboard and paper packaging allows meals to breathe and stay, oh so crisp!

For example, we recently ordered online from our favorite California pizza restaurant, who packaged up $50 worth of artichoke dip, salad and a couple of thin-crust pizzas —- but, when we arrived home —- wham —- soggy —- all of it —- SOGGY!, while my local and profuse Cajun chicken and biscuit chain nails CRISPY every time.

The swanky pizza restaurant uses styrofoam and plastic bags, while our chicken place uses cardboard boxes and paper bags!

On another occasion I was thrilled to learn that a near-by BBQ joint had FRIED OKRA. Now that demands crispy anywhere it’s served.

I ordered online, and just in case they used styrofoam, I was early —- because if you arrive in time —- and open the styrofoam lid to let it breathe —– you can potentially save that crispy texture.

Walking in the door I was hoping none of the bagged-up orders I was seeing were mine.

So when it was my turn and the worker pointed to the plastic bag next to her and said “This is your order.”, I nearly jumped as I tore open the bag, and opening that styro lid hollered,

“Don’t you know that STYROFOAM MAKES EVERYTHING SOGGY!”

As always we’re here to help!Greg Hardee

gbhardee@gmail.com
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3 Types of Leasing; The Question is — Who Pays?

Posted on January 6, 2020 by G B Hardee

Having a reasonable lease as part of your overall expenses is super important.

And know that a landlord’s quoted rate is just the start of a negotiation.

That lease by-the-way contains the base rent, i.e., the money the landlord  pockets, and the non–negotiable expenses, including the TICAM; i.e.,

The property Taxes, the property Insurance, and the Common Area.

Plus every property has everyday operating expenses; such as the utilities and janitorial services.

So, in a lease it all boils down to who pays for theses overall expenses, and that depends on both the type of property and the type of lease.

Here are the 3 basic types of leases;

  • a Triple-Net Lease – Pretty much a scenario where you are the only tenant renting a free-standing building. In this case you become responsible for ALL EXPENSES; including the TICAM, utilities and janitorial.
  • a Modified Lease – most often in a multi-tenant retail situation; the TICAM is expressed in dollars per square foot and paid monthly by the tenant, utilities are in the tenants name and janitorial is most often the tenant’s responsibility. And finally …
  • a Full-Service Lease – Usually found in a multi-tenant office building, where you pay the base rent and the landlord covers all expenses; including the TICAM, utilities and janitorial.

Of course when entering into a lease there are the initial, and usually one-time start-up, or upfit costs to make the space your own, and often the landlord is willing to spend some upfront monies on a good and worthwhile tenant, including …

  • Paint and Carpet – often in a office setting Landlord’s will offer to pay for these and will sometimes give an allowance for these costs.
  • Converting a Grey Shell into a Vanilla Shell – In newer retail there is often an allowance that takes the space from a ground level gravel pad to a concrete pad, with a dry-walled space and an ADA compliant restroom, plus it’s a good time  to request paint and carpet as part of the negotiation process.
  • Monies that are there for the taking, expressed as TI of Tenant Improvement dollars by the square foot. For example, a 2400 sf space with a TI allowance of $11.00, would mean the LL is willing to cover the first $26,400.00 in expenses.

All-in-all a good broker knows how to assess your situation in order to negotiate the best deal for you, and as always, we’re here to help!

Greg Hardee

gbhardee@charlottecommercial.com
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Lease Upfit? 4 Ways to get the Landlord to Pay!

Posted on February 13, 2019 by G B Hardee

When negotiating a lease there are always start-up costs involved in getting the space ready for a new tenant.

For example, when leasing a new office you’d want fresh paint, cleaned or new carpet and to have stained ceiling tiles replaced. 

Should you want to open a restaurant in space that’s never had one, you’d at least want the kitchen stubbed up for your 3-basin and hand-wash sinks, your three phase electrical outlets and a floor drain installed.

If you’re acquiring a brand spanking new retail space, beyond a Vanilla Box or a Grey Shell, you’d at least like to have the landlord pay to to have restrooms put in.

4  W A Y S   T O   G E T   T H E   L A N D L O R D   T O   P A Y !

 1. It’s his space.  The LL is the owner and if they want you as a tenant, meaning if you look good on paper, then they need to get the space ready for you.

2. Just ask. Always ask for everything you could ever want in a lease and don’t be surprised by just how much you receive.

3. Offer to supervise the work. Whereby you and your broker arrange for a contractor while rendering the landlord’s job to that of reasonably approving the work.

4. If all else fails meet him half-way. Often times a LL has reached a spending limit and will offer a set amount of money instead, if you, the tenant, agree to pay for the overage.

All-in-all once you’re in your space and humming along, as long as you pay your negotiated rent, your new relationship with your landlord should flourish.

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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In Commercial Real Estate Timing Is Everything

Posted on January 25, 2019 by G B Hardee

Whether purchasing or leasing, when you start dabbling in the market, lookout, because others are searching too, and depending on the sites, the opportunities can easily vanish.

The question that haunts most is, are they ready?

FOUR TIPS To Get You Ready!

    • Hire a broker. Knowing that a professional broker‘s knowledge about the market, i.e., lease rates, costs per square foot, what the demand is, zoning and the back-stories can fundamentally make the difference.
    • Have your financial house in order and know what you can afford. Whether leasing or buying, the bank or the landlord both want to see stability.
    • Experience is a HUGE ASSET. Though all start somewhere, newbies to any venture are generally frowned upon, and …
    • Be ready to put in a proposal. This is the handshake that starts the process and know that what follows is the contract.

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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Leasing Older Spaces – Will Take TIme Before You Occupy

Posted on November 5, 2018 by G B Hardee

As markets grow, over looked or somewhat blighted areas can suddenly become prime-locations for adaptive re-use and redevelopment projects. 

Often appealing to small businesses and start-ups, mainly because of the potential for lower lease rates, from the moment you’d execute a lease with a landlord, you could be looking at a year before opening for business as these adaptive uses take time.

Take this 1930s house that has ended up in a business district on The Plaza in Charlotte.

In order to become useful it needs a complete overhaul, and in this case the landlord has agreed to;

 

  • replace all siding
  • replace all roofing
  • level the floors
  • deliver new electrical, plumbing and HVAC systems. build an outside deck, and deliver one ADA compliant restroom, and he’s allowed an ambitious six months to deliver the space to the tenant.

Concurrently  the tenant hires a general design/build contractor to;

  • draw up plans
  • go through planning approval with the local governing body. and begin to purchase and store …
  • furniture, fixtures and equipment, known as the FF&E. while preparing for their portion of the renovations into the space that they want and need for their business, and they to are allowed a six month window to obtain a certificate of occupancy, or a C.O., or commence with paying rent.

When finished, the site will be an historically restored structure with new contemporary use and an asset to the surrounding community.

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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True Hospitality Says, “Believe it or not — All of this is for YOU!”

Posted on July 19, 2018 by G B Hardee

Yes, all of this is for you —– our customer!

And because we lay awake at night dreaming about how to bless you and how to impress you and how to make your experience richer, we relieve you of all concerns except to perceive just the faintest expectations with which we’ve peppered your landscape, those that hint of all we have in store.

And we understand that you, our customer, are always wrong when it comes to fashioning our business, but always right in giving us your honest criticisms.

By contrast BAD HOSPITALITY says either “Look at me and gawk ——— and if you’re here to be seen, then this is the scene to be seen with.”, or “Bear with me, as we are idealistic and though we are unsure of the details we have a lifelong dream waiting to be validated.”

So what are some ground-rules of a truly hospitable operation?

 1. Never Experiment on the Customer. A signature experience is fashioned out-of-sight of all, far away from the market and approved and prepared with the utmost care.

2. Stay 10 Steps Ahead of the Customer. That way when you make a mistake, and all of us do, you are still 9 steps ahead of the customer.

3. Everyone is Responsible for the Experience. Meaning that all staff KNOW the details and can spot any flaw at any time.

Finally, and by far, the most successful practitioners of true hospitality are those whose secret ingredient blends; a unique offering, forged through years of observation and with a yearning to fashion what we all need, ———- a TRULY HOSPITABLE EXPERIENCE!

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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Experience is the Main Driver for Small Business Success

Posted on June 21, 2018 by G B Hardee

Experience, above all other needs, i.e., money, location and/or planning makes or breaks a business.

Above all else, if you answer “yes” to the experience question; with most banks, including the federal government’s SBA (Small Business Administration) you’ve just gotten your foot in the door.

If you answer “no”, but it’s the greatest idea ever, you’ll have that same door slammed.

Why? 3 Reasons as to why EXPERIENCE is so vitally important to business success.

 1. To innovate you’ve got to be in the field. It takes being frustrated by the normal to see the need.

2. Experience gives you stamina. When you are fully convinced, through the myriad number of ups and downs in starting your business, you’re likely to never quit.

3. Experience persuades others. To build a team or to bring a new product, service or model to life, you’ve got to be convincing.

By far the most successful entrepreneurs, those who ogle the future with a knowing lens and innovate from within their expertise, are the most stubborn, tenacious and arrogant of peoples ————- and for that we are grateful!

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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Building a Business = Building a Consensus

Posted on June 15, 2018 by G B Hardee

Many of us are able to harness a knowledge of, experience with or aptitude for … i.e., our expertise, into a future product or service that would drive us into the marketplace; but before we deliver — along the way we’ll have to gather steam by building a consensus.

Understanding that a state of excellence has universal appeal; the most refined and brilliant ideas, when well articulated, can deliver a crowd-wide head-nod of affirmation.

How then would we navigate building consensus considering we have a closely held innovation and the need to bring our brain-child to market?

Keeping the circle small. 
Part of being an entrepreneur is to surround yourself with those who bring other strengths to the table while easily appreciating the breakthrough at hand.

To contain the buzz consider having these non-public advisors sign a non-disclosure agreement, binding all to an initial silence that will likely expire.

Consider sharing with constituents.
Friends and family have a hard time telling you the truth because, in the end, they still want you as a friend.

However, anyone who is in a role that would consistently  engage with your product or service is more likely to honestly access the impact you’d have on their vocations as well.

Professional help is just that, professional.
Experts are only interested in helping you steer clear of what is for them everyday problems.
A Lawyer – In almost any state you can set up a Limited Liability Corporation (LLC) with a one page application and a small fee.  The next step is deciding on an Operating Agreement that governs roles, levels of interest, insurances against the future and more.

Find one online, tweek it & have the lawyer review it.

A Book Keeper / CPA – QuickBooks reigns but you’ll need a little help understanding basic book-keeping which is the same as avoiding an audit.

A Technology Guru – Technology has become about social-media and the ever elusive page position in any web search, otherwise known as search engine optimization (SEO) and it’s becoming important to have a dedicated person who does nothing but monitor
your web presence and has the authority to respond.

                                                               And finally …

Maintain control 
Though it goes against all that we’re discussing, and knowing you’d never want to pull rank; behind the scenes, the founder needs to hold a slight majority position, because the best intentions can’t determine the future.

Building consensus is a fundamental skill that will propel your business forward and prepare you as you encounter bigger obstacles along the way.

As always we’re here to help!Greg Hardee

gbhardee@charlottecommercial.com
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