Leasing Space for Small Businesses

4 Tips on Negotiating Personal Guarantees when Leasing Space for Small Businesses

Market Insight

Leasing space for small businesses can be difficult for tenants that don’t fully understand the commercial real estate process. One aspect of leasing space that small businesses should understand is the personal guarantee. Andy Mayr of NAI Michael provides some insight on how to best negotiate personal guarantees when leasing space for small businesses. By Andy Mayr, CCIM

Landlords usually require their prospective tenants to provide business financials, such as tax returns, income statements, balance sheets, and personal financials before moving forward on a formal lease agreement.  If the landlord is not comfortable with the review of these documents or requires additional security, s/he may also ask the tenant to sign a personal guarantee.  In the event of leasing space for small businesses, it is especially important to understand personal guarantees.  Personal guarantees have been around in the banking industry for many decades, though they have only been in the real estate leasing world for about the past 40 years.

A personal guarantee puts the tenant’s own assets — such as real estate, savings, or other valuables — on the line should their business not be in a position to pay rent or other lease obligations. If you are new to owning a business or desperate to obtain a lease, you might overlook the legality of the personal guarantee. It is important to know what you are committing to and that you can negotiate the extent of the guarantee. Landlords sometimes expect a tenant to either not accept or limit a guarantee to a specific financial or time constraint. The four most popular resolutions to achieving a mutually acceptable personal guarantee are as follows: Keep reading

Mr. Michael at Business Hall of Fame

Business Hall of Fame Inducts NAI Michael’s Kenneth H. Michael

Company News

Business Hall of Fame recognizes Kenneth H. Michael’s business and community contributions.

NAI Michael’s Chairman, Mr. Kenneth H. Michael, was inducted into the Maryland Chamber of Commerce’s Business Hall of Fame last week. This is an immense, well deserved honor that recognizes his lifetime of successes throughout the great state of Maryland. Mr. Michael founded The Michael Companies (now NAI Michael) in 1973 and has grown it into the prominent commercial real estate firm that it is today. He has passed the company down to his two sons, Gary and David, while still remaining an active leader in the commercial real estate and development industry. Keep reading

Inaugural Creating Kingdom Buildings Conference Organizers

Inaugural Creating Kingdom Buildings Conference Gathers Real Estate Industry Leaders to Teach Pastors How to Build Their Houses of Worship

Company News

by Marcus Daniels

The Inaugural Creating Kingdom Buildings Conference brought together industry leaders in real estate, civil engineering, zoning & land use, architecture, construction, finance and risk management in the Washington Metropolitan Area to educate the faith community on how to successfully grow and build their houses of worship.

Over 200 attendees representing more than 100 churches gathered at The Sanctuary at Kingdom Square in Capitol Heights, MD on Saturday, April 30th. They learned more about the building process for houses for worship, identifying their congregations’ needs for space, assembling a project team, preparing their finances, determining the right location,  hiring the architect & contractor, maintaining the property and managing the risks associated with their property. With seminars and speakers on how to acquire, create and maintain optimal worship spaces, the conference featured speakers from NAI Michael, Linowes and Blocher LLP, Ben Dyer Associates Inc., EagleBank, Industrial Bank, Arel Architects, SAA Architecture and more. Keep reading

New and ongoing development projects - Riverdale Park Station

State of the Economy Previews New and Ongoing Development Projects in Prince George’s County

Market Insight

There are a number of new and ongoing development projects that are contributing to economic development in Prince George’s County, according to the 2016 Prince George’s County State of the Economy Address that NAI Michael had the pleasure of attending on April 13, 2016.

Many new and ongoing development projects were highlighted during the State of the Economy for Prince George’s County. County Executive Rushern L. Baker III, Jim Coleman of the Prince George’s County EDC, Derrick L. Davis of the County Council, and Jim Estepp of the Prince George’s Business Roundtable all spoke about the transformation and re-envisioning of the County. In fact, Baker said that there are more than $7 billion worth of projects in the pipeline, including:

Keep reading

Washington Food and Supply

Washington Food and Supply Relocates to Prince George’s County

Deals & Transactions

Washington Food and Supply, a wholesale grocer, has relocated its warehouse to Prince George’s County from their Florida Market location in the District of Columbia.

Washington Food and Supply, Inc. recently moved into a warehouse at 6300 Columbia Park Road in Landover, Maryland. Maryland Newsletters has provided details about the transaction, which can be found below. Keep reading

2015 Industrial Market Report

2015 Industrial Market Year End Wrap-Up!

Market InsightMarket Reports

The Prince George’s County 2015 industrial market grew, with many new facilities delivered and new tenants coming into the market. We review the 2015 industrial market and look ahead to what 2016 will hold for the county.

The 2015 industrial market was rife with new inventory in Prince George’s County. Over 900,000 SF of new, class A facilities came to the market, including Cabin Branch Industrial Park, Andrews Federal Campus and Collington Park. Tenants are starting to make the switch from class B and C space into better class A space. Also, we are seeing many northern Virginia tenants moving into Prince George’s County, which has more affordable rental rates. The increase in demand led to positive tenant absorption and a 5.5% increase in rental rates on average.

In Prince George’s County, there are seven primary class A industrial projects which could be viable for a large industrial user. These include SteepleChase 95, Cabin Branch Industrial Park, Andrews Federal Campus, the Brick Yard, and Collington Park. This class A space will be in high demand during 2016 and is expected to be fully absorbed over the next 36 months.

Interested in reading more about the 2015 industrial market in Prince George’s County? Check out the full report here.

By Lance Schwarz & Peter Burleigh

 

Hiring a Commercial Agent

5 Great Benefits of Hiring a Commercial Agent

Market Insight

As a property owner, you may wonder if there are benefits to hiring a commercial agent and how they can help you. Highlighted below are five reasons hiring a commercial agent can help you sell or lease your property.

By Andy Mayr, CCIM

1. Employ an Expert: Typically, property owners (both sellers and landlords) do not have the experience of a professional real estate agent and could turn to hiring a commercial agent to help them sell and/or lease their property. Commercial agents (or commercial real estate brokers) can walk through a property and see right away what needs to be done in order to get a deal completed. Agents can recommend relatively simple improvements to a property that can help a space sell or lease faster and for a higher price. In many cases, property owners are so used to seeing their property that they will likely not realize what changes can be made to improve their property. 

2. Use of Sales Tools: Commercial real estate agents have a number of professional tools at their fingertips that can get your property exposed to a myriad of prospects. These tools include searchable databases, such as Costar and Loopnet, that have far-reaching access and can get your property in front of potential purchasers, tenants, and other brokers throughout the country. Property owners do not have access to these services unless they pay a very big subscription fee, but commercial brokers use these tools on behalf of their clients. Keep reading

Cabin Branch Distribution Center

Say Hello to the New Cabin Branch Distribution Center

Deals & Transactions

Cabin Branch Distribution Center’s new buildings kick off with a new lease.

Cabin Branch Distribution Center, owned and developed by PacTrust,  recently brought two brand new warehouses to the Prince George’s County industrial market. The class A buildings were completed in fall 2015, and have seen a high amount of interest from the commercial real estate community.

Leasing activity has already begun! Over 50,000± square feet of space has been leased to the U.S. Government. Lance Schwarz and Peter Burleigh of NAI Michael brokered the deal.There is still space available in the first building, 1503-1509 Cabin Branch Drive. The second building, 1511-1517 Cabin Branch Drive, is 130,000 square feet and entirely available. If you are interested in learning more about the available warehouse space, please click here or contact Lance Schwarz and Peter Burleigh at (301) 459-4400. Regarding the industrial market in the area, Lance states:

Industrial space in close proximity to Washington, DC continues to be in high demand.

This makes Cabin Branch Distribution Center ideal for businesses looking to serve the Washington DC industrial market. Cabin Branch is situated near Route 50 in Landover, Maryland and has quick access to the Capital Beltway.

 

  • 1
  • 2
  • 6

Upcoming Events

Jul
13
Wed
9:00 am Bladensburg Beautification Day
Bladensburg Beautification Day
Jul 13 @ 9:00 am – 12:00 pm
Please join Team EDC as we partner with the Town of Bladensburg for “Bladensburg Beautification Day” on July 13th! Don’t miss this opportunity to beautify Bladensburg by painting and decorating one of its iconic corners.[...]
Jul
19
Tue
11:30 am Maryland Space Business Roundtab... @ Martin's Crosswinds
Maryland Space Business Roundtab... @ Martin's Crosswinds
Jul 19 @ 11:30 am – 1:30 pm
Click here for more information0000000 Keep reading
3:00 pm BISNOW – 6th Annual Future of Pr... @ TBA
BISNOW – 6th Annual Future of Pr... @ TBA
Jul 19 @ 3:00 pm – 7:00 pm
BISNOW - 6th Annual Future of Prince George's County @ TBA | Kalisz | wielkopolskie | Poland
// o?0:o);++rc;c++)a[c].apply(i,r);var s=f[g[n]];return s&&s.push([m,n,r,i]),i}function p(e,t){w[e]=l(e).concat(t)}function l(e){return w[e]||[]}function d(e){return s[e]=s[e]||o(n)}function v(e,t){c(e,function(e,n){t=t||"feature",g[n]=t,t in f||(f[t]=[])})}var w={},g={},m={on:p,emit:n,get:d,listeners:l,context:t,buffer:v};return m}function i(){return new r}var a="nr@context",u=e("gos"),c=e(2),f={},s={},p=t.exports=o();p.backlog=f},{}],gos:[function(e,t,n){function r(e,t,n){if(o.call(e,t))return e[t];var r=n();if(Object.defineProperty&&Object.keys)try{return Object.defineProperty(e,t,{value:r,writable:!0,enumerable:!1}),r}catch(i){}return e[t]=r,r}var o=Object.prototype.hasOwnProperty;t.exports=r},{}],handle:[function(e,t,n){function r(e,t,n,r){o.buffer([e],r),o.emit(e,t,n)}var o=e("ee").get("handle");t.exports=r,r.ee=o},{}],id:[function(e,t,n){function r(e){var t=typeof e;return!e||"object"!==t&&"function"!==t?-1:e===window?0:a(e,i,function(){return o++})}var o=1,i="nr@id",a=e("gos");t.exports=r},{}],loader:[function(e,t,n){function r(){if(!w++){var e=v.info=NREUM.info,t=s.getElementsByTagName("script")[0];if(e&&e.licenseKey&&e.applicationID&&t){c(l,function(t,n){e[t]||(e[t]=n)});var n="https"===p.split(":")[0]||e.sslForHttp;v.proto=n?"https://":"http://",u("mark",["onload",a()],null,"api");var r=s.createElement("script");r.src=v.proto+e.agent,t.parentNode.insertBefore(r,t)}}}function[...]
Jul
21
Thu
5:30 pm Thirsty (For Business) Thursday @ La Chiquita Restaurant
Thirsty (For Business) Thursday @ La Chiquita Restaurant
Jul 21 @ 5:30 pm – 7:00 pm
Please join Team EDC for the July installment of the best networking event in Prince George’s County! Meet Special Guest, Prince George’s County Council Member Andrea C. Harrison (District 5), Mayor Walter Lee James, Jr.[...]
Aug
16
Tue
11:30 am Maryland Space Business Roundtab... @ Martin's Crosswinds
Maryland Space Business Roundtab... @ Martin's Crosswinds
Aug 16 @ 11:30 am – 1:30 pm
Click here for more information0000000 Keep reading

Archived Posts