Waffle House Strikes Again – closes on fourth Daytona Location

Posted by admin on May 18, 2017 under by Tim Davis, Commercial Real Estate Definitions | Be the First to Comment

Waffle House restaurants has completed the purchase of 319 Seabreeze Blvd, making the fourth location added in the last year. 319 Seabreeze Blvd is a 1.1 acre site located on the corner of Seabreeze and Oleander Ave. Two locations in Port Orange, a location in Daytona Beach Shores was purchased earlier this month, and now in Daytona Beach. The Seller was Steiner Inc, out of Palm Beach Gardens. Tim Davis of SVN Alliance represented by the Seller and Waffle House in this transaction.

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Florida Labor Market adds 54,300 jobs in January

Posted by admin on March 13, 2017 under by Tim Davis, Commercial Real Estate Definitions, News Releases | Be the First to Comment

A Labor report from Wells Fargo economists shows that Florida added 0.6% of new non-farm employment in January for a total of 54,300 jobs. The research shows that 10,700 of these are construction jobs, with the balance consisting of professional services, wholesale trade, and manufacturing sectors. The year over year gain is now at 3.2%. The charts below shows the unemployment rate holding at near 5% statewide.Screen Shot 2017-03-13 at 3.44.57 PM

Graphic courtesy of Wells Fargo Bank NA.

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What is a Full Service Lease?

Posted by admin on December 17, 2012 under Commercial Real Estate Definitions, daytona beach commercial real estate, Daytona Commercial Real Estate | Be the First to Comment

This is a common type of lease rate in addition to gross and Triple Net Leasing – The Full Service Lease. You could say it is the opposite of a Triple Net, in that the base rent payment covers all costs of property taxes, insurance, and maintenance. Additionally it covers the cost of all utilities and janitorial. These leases are very common in medical office buildings, and with tenants who require and “all in” number for long term budgeting. Many government agencies (IRS, DOJ, etc) require these types of leases by their oversight panels.

For definitions of all lease types, See Commercial Real Estate Definitions

Tim Davis
386-566-4917

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What is a Triple Net Lease?

Posted by admin on December 11, 2012 under by Tim Davis, Commercial Real Estate Definitions, daytona beach commercial real estate, Daytona Commercial Real Estate | Be the First to Comment

daytona commercial real estate, what is cap rate, what is triple net, what is a gross lease, gross rent,This could be the most common question ever asked by a potential tenant when asking how much a space costs. You can almost feel the question coming.

“I’m calling about the warehouse on Fentress Ave. How much is it?”
“Yes, that is 4.50 a square foot, triple net.”
“Ok………”

And then it comes – right after a small silence as they are trying to process the math and come with how much per month that will be.

Triple Net leases are very common, even now the norm on many property classes such as retail and office. What it basically means is that the owner will lease you the space for a certain price per square foot of base rent, then you will pay another amount per square foot in addition, that will cover the cost of the property taxes, property insurance, and common area maintenance. The idea behind this is it allows the owner to quote a lease rate that does not require them to try and forecast what the taxes and insurance might be in the future. This is helpful if the lease is long term, generally 3 years or longer.

It is like saying, I will lease you my building for $XXXX per month. If the taxes/insurance/maintenance costs Read more of this article »

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What is Gross Rent in Commercial Real Estate?

Posted by admin on December 3, 2012 under by Tim Davis, Commercial Real Estate Definitions, daytona beach commercial real estate, Uncategorized | Be the First to Comment

daytona commercial real estate, what is cap rate, what is triple net, what is a gross lease, gross rent,Just a few moments ago I was having a conversation with a property owner about leasing up 10,000 SF of warehouse space in a 40,000 building that he owns. I know this owner, and have been in contact with him over the years keeping track of the lease situations in all of his various assets. When the topic of our converstaion turned to my prospective tenant, and the lease rate I felt we could get them committed at, the question arose, “is that triple net?” Great question, and not at all out of the ordinary. But when I replied, “no, it is gross rent” he had several followup questions about exactly what gross rent meant.

It seems that as commercial real estate professionals, we have spent the last decade(or more) educating the world Read more of this article »

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Properly Underwritten Cap Rate Calculations for Commercial Real Estate. It is not a pro-forma folks.

Posted by admin on November 13, 2012 under by Tim Davis, Commercial Real Estate Definitions, daytona beach commercial real estate, Good Info - Read It | Be the First to Comment

I was having dinner with some friends the other night, and in the group was a fellow real estate professional. He primarily sells residential, but does a bit of commercial work from time to time. He was telling me about a commercial property he has for sale, and commented “it should really sell, it is XX cap” Instantly my mind starting racing, well, sure it is a XX cap rate, but with what financial underwriting standards?

I’ve seen countless sellers over the years haul me into their office, wanting to list property for $XXXX dollars, which by their calculations is a 9% cap rate. They have a gross revenue number of all the rents collected, and on the expense side, property taxes, property insurance, and some common area Read more of this article »

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What is a Cap Rate?

Posted by admin on December 3, 2011 under Commercial Real Estate Definitions, daytona beach commercial real estate | Be the First to Comment

daytona commercial real estate, what is cap rate, what is triple net, what is a gross lease, gross rent,

What is a cap rate? Cap Rate is short for “capitalization rate” or the rate at which you are capitalizing on your investment. Think of it as a return on investment (ROI)

An 8% cap rate means the real estate asset is returning the owner 8% of his investment per year.

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