The refinancing of commercial property often occurs for the same reason a person might refinance their home – to reduce high interest rates. The owner may also be looking into refinancing in order to obtain cash from the equity that has been built into the property over time. Regardless of the reason there are few points to remember if you are thinking of refinancing your commercial property.

1.Any capital obtained from the refinancing of the property should be reinvested in the property itself. Any other use of the cash and the interest paid on the new portion will not be tax deductible. This cash-out amount will be considered a consumer debt if its use was found to be outside of the property and is therefore no longer tax deductible.

2.Because loans for commercial properties are typically much larger than those for residential properties, it will pay to consider the type of loan you have in depth before committing to a large loan that will take many years to repay. Compare your options for both fixed rate and variable rate loans. Does the variable rate loan have a cap? How many times is it expected to change? These details can often be inferred from the investment index that is linked to the rate. Be wary of any lender unwilling to discuss these details with you.

3.If you decide to refinance, check to see if the new loan has a “due on sale” clause. This clause works to the benefit of the lender in that it prevents the property from being sold without the approval of the lender.

4.Make sure you know what kind of paperwork will be involved. Professionally prepared stated income reports may be all you need for many types of commercial property, depending on the circumstances. Corporate tax returns, profit and loss statements, and balance sheets may not be required. In rare situations, full appraisals or environmental reports may be needed. The more complex the situation surrounding the refinancing, the more complex the required documentation may be.

5.Hefty penalties that must be paid off for pre-payment of an existing fixed-rate loan may prohibit some borrowers from refinancing. Check the details of your original loan to see if there are any pre-payment penalties.

6.Interest rates on commercial real estate loans have reached as low as 5 percent for a 10-year term. Make sure you get the best rate you can if you decide to refinance. It may be best to lock in long-term debt now – interest rates may or may not get any lower.

7.Consider selling if it is an option for you. Prime commercial real estate is a hot investment in many areas today. Test the market and see what kind of offers come back.
8.If your business is doing the refinancing of the building it occupies, acquiring a term loan may be an option. Term loans usually mature between one and ten years and can give small businesses the operating cash they need.

By: J Suffie

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Kansieo.com

Glass block was originally developed in the early 1900′s but it is only recently that it has come into its own. Glass block is stronger than sheet glass, almost vandal proof, easy to clean and decontaminate and as strong as brick from a structural point of view – glass block also looks fantastic and carries a certain aesthetic appeal. Modern designers are using it in increasing quantities and even a State Capitol building has used it to critical and aesthetic acclaim (check out the Michigan Capitol Building).

Glass block has many domestic connotations and it is not unusual to find the material used to create a fantastic looking shower or bathroom area but there is so much more that can be done with the building material – imagination just needs to be expanded and the possibilities become clear.

In commercial and industrial buildings, glass blocks were used to improve lighting without compromising security (the material is tough), from this business type situation, bars and clubs have used it but it is in the home that glass block can really make a difference.

Basement windows have utilized this versatile building material, again because it is secure and provides light but this is just the beginning. Architects have increasingly incorporated glass block into home design for sweeping staircases and introducing curves into living space rather than angular straight-lined rooms. Glass lends itself to creating curves and some is designed and manufactured to create soft curves and bull-noses to enhance the drama of a sweeping staircase.

It is also favored because of its energy efficiency. This may come as a surprise because glass is usually associated with heat loss and poor insulation capacity, but the fact is that it provides an excellent insulation material to build with. More than the insulation capacity for energy efficiency is the fire-rating effectiveness – glass block provides fire-rating for up to 90 minutes which beats traditional wood construction by miles. There is also the tensile strength factor – the material is pretty much indestructible and can be hit repeatedly with a heavy implement without breaking. It is also an excellent sound insulator, so if you are looking for the ability to sound-proof, whether you want peace and quiet or the ability to play your sound-system at full blast without disturbing your neighbors, this is an excellent building material to use.

Aesthetically, glass block provides a great deal of light but still can be manufactured so privacy is assured. This unfortunately has facilitated the construction of restrooms all over the world but this is a feeble association. It can be colored easily and provide a great-looking design statement in any living space. It can give your space a retro feel or, conversely, a very modern feel.

You can also source building material that does more than simply look good – specialist manufacturers are creating glass block which directly affects how light is transmitted. This gives the ability to use light and create patterns within your living space as well as having a wall composed of great looking material.

Glass block is versatile, durable and great looking – you just need to exercise your imagination to create spectacular results at home or at the office. Born of industrial need, glass block is secure and highly efficient at protecting your home from intruders, pollution and sound yet at the same time, nothing comes close to the beauty and spectacular visual effect which can be created.

By: Lawrence Reaves

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All property that has the potential to generate revenue now or in the future is commercial real estate. Some types of commercial real estate are:

o OFFICE PROPERTIES… Executive office space, office buildings, executive suites, flex space, rental office space, upscale office parks, corporate headquarters, class A office suites, freestanding offices, bank branches.

o RETAIL PROPERTIES… Shopping centers and shopping malls, shops, strip center sites, chain store site, showrooms, major franchise locations, showroom space, retail sites, pads, out parcels, free standing stores.

o DISTRIBUTION AND INDUSTRIAL PROPERTIES… Warehouses for lease, sublease, rent and for sale, industrial facilities, industrial parks, factories, factory sites, mills, industry manufacturing plants, cross dock trucking terminals, shipping container yards, supply chain management infrastructure, 3pl resource provider company facilities, bonded warehouses, rail freight warehousing, refrigerated climate controlled warehouse space, logistics bulk transport, air cargo airport rentals, deepwater port commerce, airports, rail yards, deep water ports, cold storage and dry storage facilities.

o HIGH TECH PROPERTIES… Research and development parks, medical laboratories, call centers, scientific building projects, office space, NAP, R&D Park.

o LAND BROKERAGE… Corporate Headquarters locations, land tracts, residential development tracts, Industrial Parks, zoned land parcels, speculative acres, waterfront property, reality sites, business parks, resort property, regional mall sites.

o INVESTMENT PROPERTY… Office buildings, industrial rental properties, realty, multifamily rentals, regional shopping malls, shopping centers, rental properties, net leased properties, business parks, land parcels, residential developments.

o HOTEL AND RESORT PROPERTIES… Hotels, motels, resort lodging and hospitality properties, luxury resorts, convention centers, motel and hotel brokers, golf courses, theme park sites, stadiums, attractions. Note that unused property held for future appreciation is also considered to be commercial real estate.

By: Ron Redlich

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commercial property