Posted by dan wagener on Thu, May 19, 2011 @ 02:52 PM
Many Real estate investors may still experience trepidation about purchasing new or existing commercial property. The commercial real estate market, along with the rest of the economy, has been in flux for a few years now. Yet the industrial market around O’Hare still offers investors potential opportunities.
Why Invest in Commercial Property Near O’Hare International Airport?
The most obvious answer to the question of buying property near O’Hare is the fact that Chicago is a large city, with plenty of traffic, especially near the airport. Unlike newer airports that are built far away from the city center, O’Hare International Airport is surrounded by industrial and commercial businesses. The city gives commercial prospects in the area diverse options to utilize property for retail space, industrial space, service and manufacturing, or investment. The restaurants, shopping, hotels, manufacturing and service industries surrounding O’Hare give this area ripe potential for investors.
In his last few months in office, Mayor Daley has pushed again for the investment in a high speed railway from O’Hare to downtown Chicago. Daley has reached out to worldwide technology companies and businesses to help invest in the railway, including a visit to China this March.
Rahm Emanuel, who was inaugurated Mayor on May 16th, has also expressed interest in the project. During his time as President Barack Obama’s White House Chief of Staff, Emanuel helped form the administration’s plan to build high-speed rail corridors across the United States.
With these structural expansion plans in development, commercial property surrounding O’Hare will provide opportunities to accommodate this area’s growth. In other words, the potential growth in the Chicago area makes it a more enticing place for visitors to travel and businesses to build.
Besides the busy and abundant traffic near O’Hare, here are more reasons to consider investing in commercial property:
• O'Hare International Airport is the second busiest airport in the country
• O'Hare submarket has the largest industrial inventory at over 100,000,000 sq. ft.
• O'Hare market continually witnesses consistant tenant demand
With the airport being in close proximity to major expressways and interchanges, there is a high traffic flow, opening up opportunities for industry. O’Hare is a major component of Chicago’s economic engine with high traffic and job opportunities.
The area surrounding O’Hare while impacted by the economy is poised for growth as the economy rebounds. This could be a great time to make the commercial investment.
Posted by dan wagener on Tue, May 10, 2011 @ 03:29 PM
Last week, leading commercial real estate innovators, CoStar and LoopNet announced that they will combine forces to provide a premier online resource for the commercial real estate business.
By merging the various strengths and resources of the two companies, the complementary services will deliver an even more extensive market coverage. The combined companies will be able to deliver enhanced research and analysis to various prospects from the large brokerage corporations down to smaller investors.
CoStar has been an innovator in providing information to facilitate the research and analysis of the commercial real estate industry. Their business model mainly draws the attention of businesses.
On the other hand, LoopNet is a premier source for the marketing of commercial properties. Their property search function on their website is designed to attract individuals.
The two organizations will now be capable of combining expertise to work together and provide online data for researching, marketing, and analyzing commercial properties.
Having the collective research, analysis, business intelligence, and marketing capabilities in one spot extends the information to a variety of customers making the commercial real estate market more comprehensive. Both companies’ board of directors approved the $860 million transaction, which is expected to close the end of this year.
Andrew C. Florance, the Founder and CEO of CoStar stated that this agreement will provide “even more innovation and greater efficiencies by creating the premier Internet solution for the commercial real estate industry.”
Richard Boyle, Chariman and CEO of LoopNet declared, "this transaction combines the capabilities and best practices of two successful and very complementary companies.” By providing enhanced efficiency and collective innovation for individual and companies involved in commercial real estate, the merger will not only benefit the customers, but the shareholders as well.
The aggregate knowledge and capabilities of the two companies address the challenges of the constantly changing industry.
Posted by dan wagener on Sat, Mar 26, 2011 @ 04:39 PM
I just read a quick article by Stephen Fishman,in the March 18, 2011. Inman News™, Here it is. Maybe some of the real estate practioners who read my blog can benefit.
Your tax return is due by April 18, 2011 (the deadline was extended three days this year because of weekends and holidays). If you haven't filed yet, make sure you haven't forgotten the following 10 tax deductions, which are often overlooked by real estate agents and brokers.
1. Business clothing with logos: You can deduct clothing you buy for business use only if it can't be used for ordinary street wear. This means you can't deduct a regular business suit. However, you may deduct the cost of a sport jacket, coat or other clothing item with a company logo on it.
2. Car expenses if you take standard mileage rate: If, like most small businesspeople, you use the standard mileage rate to deduct your car expenses, you get to deduct 50 cents for every business mile you drove in 2010. You don't get to separately deduct the cost of gas, insurance, depreciation and similar items because these are all included in the standard mileage rate. However, you can still deduct certain expenses, including the interest you pay on a loan for your business car, parking and tolls. However, you can't deduct the cost of parking tickets.
3. Home telephone expenses: You get no deduction for a single phone in your home; but you may deduct the cost of long-distance phone calls and special phone services you use for business such as call waiting or message center. You may deduct the full cost of a second phone line you use at home for business, including a cell phone.
4. Business gifts: Gifts you purchase for clients are deductible as a business expense, but the deduction is limited to $25 per person per year. However, the $25 limit applies only to gifts to individuals. It doesn't apply if you give a gift to an entire company, unless the gift was intended for a particular person or group of people within the company. Such companywide gifts are deductible in any amount, as long as it is reasonable.
5. Continuing-education courses: You can't deduct the education expenses you incur to qualify for a new business or profession. For example, you can't deduct the cost of studying for your real estate license. However, you can deduct the cost of continuing-education courses you must take each year to maintain your license. Education that improves your knowledge and skills as a real estate professional is also deductible -- for example, you can deduct the cost of a webinar on how to use social media to find sales prospects
6. Tax-preparation fees: You can deduct the cost of hiring a tax professional to prepare your business tax return. If the same tax pro prepares your personal and business return, you can deduct only the cost of preparing the business portion. Make sure that you get an itemized bill showing the portion of the tax preparation fee allocated to your business.
7. ATM fees, credit card fees, and interest: You can deduct ATM fees, credit card fees and other bank charges you paid during 2010 for all your business accounts.
8. Subscriptions: Real estate-related magazines and trade publications are deductible. You can also deduct the cost of subscribing to an online real estate news service.
9. Greeting cards: Greeting cards you send to clients and sales prospects are a deductible advertising expense.
10. Websites: You can deduct the cost of designing and maintaining a website you use for business. You can also deduct your Internet hosting fees and the cost of obtaining a domain name for your business.
Posted by dan wagener on Wed, Mar 16, 2011 @ 02:09 PM
We just saw a fantastic capital markets 
report from The CBRE National Partners. CBRE notes Industrial investment sales saw a dramatic recovery during 2010. Every major market saw positive absorption in the United States. This recovery can be attributed to an abundance of both debt and equity capital in the marketplace. It is believed cap rates will continue to compress during the second half of 2011. Low interest rates along with the return of debt and equity will drive transaction volume. Here is a list of highlights from the CBRE 2010 Year in Review:
• Total industrial investment volume increased by 112% from $6.7B to $14.2B (excluding user sales).
• Transactions grew from 553 to 1,110.
• Core stabilized property was the prime focus of the larger institutional investors during the first half of the year.
• Cap rates declined in every major market throughout the year by as much as 150-250 basis points.
• Lenders are increasing risk and tolerance.
These are all good indicators that the market is shifting and barring any major disasters in the US we should continue to see the industrial real estate sector improve through 2011.
If you have a real estate project that you wish to discuss, please call or email me anytime.
Regards,
Dan Wagener, SIOR, CCIM
(847)417-9713
dwagener@wagenerequities.com
Posted by dan wagener on Fri, Mar 11, 2011 @ 03:38 PM
Who is Buying in 2011?
1. The first group of commercial property buyers were sellers in 2006-2008.
2. The second group are high equity, low leveraged, long-term holders who have been sitting on cash for years.
3. The third group are investors getting out of the stock market and are purchasing investment property in the range of $500,000 - $5,000,000.
4. The last group are buyers of bank notes. Lenders deal directly with them as they are typically the preferred customer at the lending source.
In short, 2011 will remain challenging. Tenant retention and sound fiscal management is still the key to surviving this downturn. Owners must know more about their property, the submarket, leasing activity and cost management than ever. Expect to be grilled on a regular basis by your lender. Just be armed with information. Lenders want to believe you are the expert.
Rents have fallen. Values have fallen. Opportunistic buyers of investment property have stepped into the marketplace and are making their moves. Some of those early movers have been richly rewarded, but I can assure you that 2011 buyers will be equally rewarded by making prudent purchases. As the recovery progresses rents and occupancy levels will begin their cyclical climb.
Most Popular Property Type ?
Single tenant, net leased properties with eight or more years remaining in the lease. If properly priced, they move quickly.
Wagener Equities Commecial Real Estate Services has the resources and knowledge to help real estate investors buy, sell, lease and manage their real assets in good times and bad. Give me a call anytime to discuss your real estate invesment,
Best Regards,
Dan Wagener, SIOR, CCIM
(847)816-2621
dwagener@wagenerequities.com
Posted by dan wagener on Wed, Feb 16, 2011 @ 10:44 AM
As the business climate continues to strain resources, we have looked at the basics of our marketing efforts and discovered something old, new and tried and true that are helping us continually improve our commercial real estate brokerage business.
1. Something Old that we have redoubled our efforts on is basic shoe leather canvassing. That's right, going door to door through the snow, sleet and subzero temperatures. It's slow, methodical and seemingly unpleasant to the uninitiated until on that 15th or 50th spontanious meeting when you come face to face with a business owner that needs help with his or her real estate. The face to face contact beats every other marketing tool and anchors your relationship immediately.
2. Something New is improved communication with our clients through real time electronic project files that our clients can log into anytime from anywhere they have an internet connection. We update our activity as it happens so our clients know they are top of mind to us. No more weekly updates and dusty folders filled with hand scrawled notes.
3. Something Tried and True is increased marketing to fellow commercial real estate brokers of our availablities as well as cost effective electronic marketing to businesses in the markets we serve. Keeping our information current and in front of those people who are most interested in our offerings is critical to keeping the deal pipeline full.
These three marketing strategies are helping us weather the economic storm better than many of our peers and will help us improve our business services as the economy improves. If you wish to discuss our strategies and real estate solutions in more detail please conact me at your convenience.
Best Regards,
Dan Wagener, SIOR, CCIM
President
Wagener Equities Commercial RE Services, Inc.
Mobile: (847)417-9713
Direct: (847)816-2621
Email: dwagener@wagenerequities.com
Posted by dan wagener on Thu, Jan 06, 2011 @ 11:06 AM
In my last post I discussed getting my financial house in order. It is sound advice and although I am starting to sound like Mr. Financial Advisor for consumers, I think it never hurst to pay forward good advice when it comes to finance and common sense.
I just read an interesting article from Herb Weisman "Consumer Man" about 8 rotten deals to avoid this year. Take a look at it, I hope it gives you some nice insight.
http://on.msnbc.com/fTLSBL
Remember, when I am not dishing out consumer advice my comapny Wagener Equities Commercial Real Estate Services is helping business owners and property owners with their commercial real estate projects. Give me a call about your next real estate project.
Best Regards,
Dan Wagener, SIOR, CCIM
Phone: (847) 816-2621
Email: dwagener@wagenerequities.com
Posted by dan wagener on Sun, Jan 02, 2011 @ 09:06 AM
It's 2011! Happy New Year!
It always amazes me how something like a new year can invigorate my organizational skills and provide that clean slate feeling that gives a sense of calm and hope for the future. This year is no different, but in these financially turbulent times I am taking action to ensure my financial stability remains intact. Here are 7 steps I recommend taking to stabalize your finanacial resolutions in 2011:
1. Pay off all or as much credit card debt as possible. The average credit card interest rate is 16.7% This is not a smart way to pay for clothes, food, or living expenses. A zero balance on a credit card is a smart way to use short term credit to your advantage.
2. Analyze my finances and put aside a rainy day account. Put together a workable budget and set aside 3 to 6 months of gross salary in a liquid account for emergencies.
3. Have a strategy for banking a investment. Today the average 6 mo. CD and money market accounts are yielding less than 1%. It may be time to start investing in the stock market through mutual funds, exchange traded funds or solid large cap stocks. The problem most people have with the stock market is that they take money out when the market drops. The stock market is a long term financial strategy. Be disciplined to buy low sell high.
4. Have a rational plan for owning or renting a home. If you own or are looking to buy a home consider the fact that interest rates are very attractive. Work with a lender to see how much you qualify for. Analyze all of the costs of owning, not just the mortgage payment. If you own and have a high home equity loan balance pay it down or off as soon as possible.
5. Maximize all benefits at work. Take a look at all the benefits your employer provides. Take advantage of any you may have ignored. Please, please, please fund your 401K plan to the limit, especially if your company is matching a portion of your contribution.
6. Be wary of potential scams. Social media has increased our information gathering ability and also provided a nice platform for scam artists looking to take advantage. Look out for that random widow who wants to share her alleged $10 million inheritance with you, but needs to park the money in your bank account for a while.
7. Include family members in planning for financial future. Talk with every member of your family about finances. Make sure they understand how much things cost. This includes children who may not know why they suddenly cannot get everything they want.
Take these 7 proactive steps for financial health and be prepared for the new year with more confidence. If I can be of assistance in any of your commercial investment real estate projects in 2011 please contact me.
I wish you much prosperity in the new year!
Sincerely,
Dan Wagener, CCIM, SIOR
Wagener Equities, Inc.
Phone: (847)417-9713
Email: dwagener@wagenerequities.com
Posted by dan wagener on Fri, Dec 31, 2010 @ 11:03 AM
At this time of year we can take some time and reflect upon everything that has occurred throughout the year. While it might be easy to get caught up on the negative we really should not dwell on it. True, we want to make note of certain occurrences and prevent any repetitions but other than that does reflecting on the negative benefit you in any other way. I think not.
My experience has been to reflect upon the positive. What went right during the year? How did this happen? How can I duplicate this towards other projects? Who helped make this possible? Did you acknowledge and thank them for their help?
I recently saw an interview and read an article about John Kralik. He is an attorney that was really in a bad spot, personally, professionally financially and emotionally. He decided to challenge himself to thank someone each day for a year. These simple acts changed his life and he has written a book. Check it out at, www.365thankyounotes.com
After seeing how this changed his life it made me reflect upon how I treat my team. I consider my team to be not only my fellow employees but vendors and tenants as well. I find that a simple thank you can help build some loyalty that can be valuable in future projects. I love the opportunity to have my team help you to keep your industrial building running smoothly.
Wagener Equities Property Management Corporation provides a full array of property management services customized to your unique situation. If you are interested in discussing your property management solutions contact me at:
Oh yeah, Thank you for reading this little article!
Dennis E. Mumm
Vice President - Property Management
Phone: (847)816-2620
Email: dmumm@wagenerequities.com
Posted by dan wagener on Fri, Dec 31, 2010 @ 10:26 AM
Commercial real estate investors have been waiting patiently for banks to begin unloading the commercial properties they have foreclosed on. It appears that they will have to keep on waiting.
While there will be distress buying opportunities in the coming year, it’s becoming increasingly clear that the liquidation of toxic real estate assets by the banks will occur over a five year period rather than all at once. Unlike the savings and loan crisis of the late 1980’s, when the Resolution Trust Corp. swiftly liquidated poorly performing real estate assets for as little as 10 to 20 cents on the dollar, today’s banks haven’t been forced to sell their troubled assets.
Many borrowers have been granted loan extensions or modifications, a process that has become known as extend and pretend. In basic term, lenders are simply “kicking the can down the road” and hoping that the overall real estate market will improve in 2 or 3 years and save them from the unpleasant task of foreclosing on these properties.
Many large investors have set aside considerable capital in anticipation of a commercial real estate “Fire Sale” . These investors have been disappointed so far and it appears that they will have limited prospects over the next year or two. If I can be of assistance in your next real estate project please call me anytime.
Tom Wagener, CCIM
Wagener Equities, Inc.
Mobile: (847)445-9592
email: twagener@wagenerequities.com