Leasing Brokerage (CON’T)
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NREV uses a unique approach to assist all parties in understanding a proposed lease transaction:
• Provides a spreadsheet containing the formulas used to calculate all rents and other tenant financial obligations during the lease term and extensions.
• Prepares an abstract of all key deal points.
• Drafts all leasing documents and assists tenants with space planning and value engineering of tenant improvements. When necessary, NREV will obtain a construction bid so that the owner and Tenant will be able to estimate leasing costs.
Owners and tenants, including their attorneys, have praised this approach as saving legal time, while giving parties the confidence to proceed to lease execution.
After lease execution, NREV provides comprehensive tenant coordination, including construction management of tenant finish, and assisting new tenants with matters ranging from insurance to utility transfers. Several tenants at Northwood Commons have made this point in writing, such as Elizabeth’s Bakery and Café, Cuvee 103, Enterprise Animal Hospital and Northwood Floral, North. After closing, NREV prepares a final lease abstract, showing a lease’s impact upon a property’s valuation.
The Case Study of Northwood Commons summarizes leasing actions and results. NREV leased and renewed the leases of several businesses with national or regional scope—Craig Duncan (State Farm) insurance agency, Wild Birds Unlimited, Nicholas Financial Corporation, H & R Block, Oreck vacuums, Burger Monger and Roth-Sodexo, as well as local tenants of the highest quality. NREV, as property manager and exclusive listing agent, leased or renewed 70% of the property’s square footage. NREV achieved retail occupancy of 100% (an increase from 50%) and Project occupancy of 90% (increased from 60%).
Property Management
NREV maintains that quality property management increases sustainable net operating income (NOI), and must be supportive of a project’s leasing program.
NREV’s property management process is as follows:
• Conduct a comprehensive property review;
• Notify all parties of management change, from tenants and contractors to utilities and local government;
• Review all property and liability insurance and verifies that there are no serious “life-safety†issues.
• Meet all accessible tenants within the first 7 business days, and interviews important vendors reviewing their contracts, scope of work, performance standards and costs;
• Examine all existing leases and CAM reconciliation letters; and prepare lease abstracts, structured to facilitate valuation of the property;
• Obtain estimates for needed project deferred maintenance and capital repairs, as well as vacant unit repairs, maintenance and preparation of the center for effective leasing;
• Assess compliance with ADA, environmental and other applicable laws;
• Perform a compliance review of all key legal documents, including mortgages, zoning ordinances and insurance policies;
• Acquire updates of surveys and title documents;
• Analyze the current tax assessment;
• Meet with local officials to verify code compliance, establish working relationships and obtain all available permit plans;
• Prepare a rent roll, cash budget and valuation of the property and discusses a proposed Value Plan with for the client’s review, revisions; and
• Upon commencement of management operations:
…….o Institute strict collection procedures and cost controls to maximize net operating income;
…….o Ready vacant units for showings to maximize the project’s leasability;
…….o Manage the Property in accordance with the Value Plan; and
…….o Provide clients with monthly reconciled financial reports that tie with the cash budget, and progress reports on meeting the goals set for the project.
