Real Estate Contracts

Commercial Office Lease Negotiation Checklist – Pro-Tenant

Published on: June 18, 2018 | by ESQ.title

This Article provides you with tips to create a concise and effective negotiation checklist and the key points you should consider when negotiating a lease in a multi-tenant office building.

This Article also highlights key provisions you should pay close attention to often found in office leases.

At initial glance, a 20, 30 and sometimes 40 page commercial office lease agreement may seem daunting. However, with a properly drafted checklist, a savvy negotiator can swiftly navigate this legal document by making sure that all of the key provisions of the lease have been accounted for (or at least, that you know what you are getting yourself into before you are bound by its terms). A wise person once said, “Organization is the key to success.”

A good summary or checklist can be a useful tool for tenants to:

Keep track of on-going lease negotiations.
Quickly reference the key provisions in your lease.
Summarize the final key terms of your final executed lease.

CMBS – Commercial Loan Maturity: The “Wall of Maturities” – Status Update

Published on: July 8, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

According to reporting by Morningstar Credit Ratings LLC, commercial real estate mortgage borrowers with maturing loans paid them off at a slower rate as of May 2017. Peter Grant of the Wall Street Journal suggests this slower payoff rate, and the ensuing swell in delinquent/unpaid loans, can be at least partly attributed to 10-year mortgage loans taken out by borrowers in 2007, which got repackaged into commercial mortgage backed securities (CMBS). This mass of maturing debt, which many are referring to as the “Wall of Maturities,” is coming due and many people are concerned about the effect it may have on the real estate market, as well as the economy as a whole.

We all remember the mess that was created, and exacerbated, by the high risk lending that was prevalent across the country ten years ago. Continue Reading ›

Market Report – 2017 Q1 South Florida Pre-Construction Condo Market Update

Published on: May 18, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Ladies & Gentlemen, we have already arrived at the second week of May, which can only mean two things:

1. The Miami Marlins are almost out of the playoff hunt (already); and

Market Report – Residential Condo Market in Miami, South Florida – March 2017

Published on: March 13, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

The Miami Downtown Development Authority’s Annual Residential Market Study Update for the Greater Downtown Miami area, prepared by Integra Realty Resources (IRR), came out in early February, and is full of interesting/useful information. In this post we will discuss a few of the attention-grabbing tidbits from the Miami Downtown Development Authority (MDDA) report, and begin to address how some of these developments are going to affect you as buyers/sellers here in the Miami area.

According to the Senior Managing Director for IRR, Anthony M. Graziano, and Market Research Analyst, Dan Bowen, a big picture view on the state of the market should recognize that while inventory is up, there is no distress in the market. New pre-construction deliveries closed out successfully in 2016, demonstrating buyer confidence.

Resale pricing retreated modestly (6% – 7%), reflecting both a correction after five consecutive years of growth, as well as a stronger US Dollar, resulting in nominal price increases for most foreign buyers, according to the MDDA report.

With regard to condo delivery, the report notes that the greater downtown Miami area saw the largest volume of delivery (2,202 units delivered in 2016) since 2008, although it was also noted that this figure is mostly in line with the expected 11-year and 15-year cycle of absorption.

Real Estate Consulting Model – Commission Rebate Program

Published on: March 4, 2017 | by ESQ.title

By: Alejandro E. Jordan, Esq.

“Our Real Estate Consulting Model will Revolutionize the entire Real Estate Industry,” says Alejandro E. Jordan, JD.

As you know, in today’s real estate market, everything that is listed on the multiple listing services is available to be seen on hundreds of duplicated websites at no cost to you. Independent surveys state that over 95% of buyers search the Internet to find a home. Virtually no one surveyed said their agent found them a home that they had not seen on the Internet or by driving around. If you are one of the over 95% of the buyers out there doing their own homework, we figure why not pay you for your efforts so that you save money on your transaction closing costs.

Serving the Next Generation of First-Time Home Buyers

Today, Millennials (even Gen X and Gen Y) prefer to research information online or through their friends. Our clients are savvy home buyers. They’re involved in their search and know what they want. They don’t need an agent to look on the Internet for new listings. There are plenty of online tools they can use for that. They don’t need an agent to drive them all over town every weekend. And, they certainly don’t want to pay a full commission just to close the deal. Buyers want someone who is on their side and who is hired to represent their interests.

How does the Real Estate Consulting Model Work?

Due Diligence on Commercial Real Estate in Miami – Safety, Risk Management and Environmental Considerations

Published on: September 27, 2016 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Due Diligence on Commercial Real Estate Transaction in Miami, South Florida

Safety, risk management, and environmental due diligence before a commercial real estate transaction is becoming more complex. Here are some guidelines for performing due diligence on a commercial real estate transaction involving an existing structure.

Safety Assessment:

Is the building ADA compliant? If not, is there a current remediation plan in place?
Safety inspection of elevators?
Fire system adequate and inspected? Documented fire safety protocols?
Have there been any lawsuits or complaints filed, even if dismissed, regarding safety or access issues?

FAQs – 1031 Exchanges (Tax Deferred Exchanges) for Commercial Real Estate

Published on: July 31, 2015 | by ESQ.title

By: Alejandro E. Jordan, JD

Frequently Asked Questions (FAQs) – 1031 Exchanges (Tax Deferred Exchanges) for Commercial Real Estate

Question 1: What is the difference between a sale and an exchange?

Answer 1: A sale is an exchange of real property for cash. An exchange is a transfer of property for other like-kind property – a “non-taxable” sale.

Question 2: What provisions are required in a Purchase and Sale Agreement to enter into an exchange?

Answer 2: A Purchase and Sale Agreement should contain language establishing the exchangor’s intent and notifying the buyer of the exchange. Examples are:

When Selling:

“It is the intent of the Seller to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Buyer agrees to execute an Assignment Agreement at the request of Seller at no additional cost or liability to Buyer.”

When Buying:

“It is the intent of the Buyer to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Seller agrees to execute an Assignment Agreement at the request of Buyer at no additional cost or liability to Seller.”

Question 3: Can an investor trade from several small properties into one large one?

Investing in NNN Triple Net Leased Commercial Real Estate Properties

Published on: February 28, 2015 | by ESQ.title

By: Alejandro E. Jordan, JD

Investing in NNN Triple Net Leased Commercial Real Estate Properties

Not all real estate investors are created equal. A large number of them simply are looking to place their hard-earned money into a safe haven to avoid the often unpredictable nature of the financial market. In a nutshell, based on how the leases are drafted, NNN leased investments state that the tenants are responsible for paying rent plus the operating expenses of the building such as taxes, insurance, repairs and utilities. A true passive investment for the owner/landlord.

These NNN (Triple Net Leased) investments are valued using a combination of factors, such as the tenant’s credit, the length of the lease and rent escalations over the term, and, last but not least, the real estate itself.

“NNN leased properties survive the ups and downs of the markets. As an investor, you know your lease is guaranteed long term, often with rental escalations worked into the leases, meaning the investor will be receiving a steady income, regardless of how the outside forces are performing,” says Enrique Jordan, Investment Sales Associate with NAI Miami, Commercial Real Estate Services Worldwide. Continue Reading ›

1st Quarter 2014 Industrial Market Report for Miami-Dade County CRE

Published on: August 4, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Total Industrial inventory in the Miami-Dade County market area amounted to 229,374,658 square feet in 8,790 buildings as of the end of the second quarter 2014. The Flex sector consisted of 16,908,307 square feet in 600 projects. The Warehouse sector consisted of 212,466,351 square feet in 8,190 buildings. Within the Industrial market there were 782 owner-occupied buildings accounting for 30,523,593 square feet of Industrial space.

Sales Activity

Miami-Dade County industrial sales figures for industrial building sales of over 15,000 square feet fell during the first quarter 2014 in terms of dollar volume compared to the fourth quarter of 2013.

South Florida Real Estate Due Diligence Checklist

Published on: February 23, 2014 | by ESQ.title

By: Alejandro E. Jordan, Esq.

Whether you are a seasoned real estate veteran or a first time investor, having a due diligence checklist in “black and white” is a valuable and necessary tool for any real estate purchase. For commercial real estate, value is determined by analyzing the income stream the property generates or is expected to generate. Of all the commercial properties types, perhaps none of them are more complex than the analysis of a mixed-use multi-tenant property with residential, office, and retail uses. While every commercial real estate investment presents a unique set of challenges and opportunities, each transaction beings with essentially the same due diligence.

Below is a commercial real estate due diligence checklist that provides you with a general list of some of the most necessary documents to review and analyze with your South Florida due diligence real estate lawyer.