Glenn Rigdon

Commercial broker and commercial appraiser located in Las Vegas, Nevada see our real estate site at http://www.horizonvillagerealty.com/ and appraisal site at http://www.horizonvillageappraisal.com/

Content Posted by Glenn Rigdon

What Happens to Leases When a Property is Sold?

Leases are contracts that encumber a property even after a real property is sold. So if you acquire an industrial building that is already leased and the lease allows five options to the tenant for 5 year for each option the tenant has rights to rent the building for at least 25 more years. So if you think you are going to purchase the building and eject the tenant you are in for a big disappointment. Why would an owner give a tenant renewal options that can continue to control the use of a property over a 25-year term? There are a number of motivations. Some tenants have to make significant tenant improvements. A dentist for example may want to make improvements that cost hundreds of thousands of dollars and they can't make them if their lease will expire after 3 to 5 years.


How Important are Title Companies?

Having a great title company makes a huge difference in how (and when) your real estate transactions are accommodated.  If the title agent is good you will have fewer crises and so often disrupt or destroy your transactions, it can mean the difference between being paid and being disappointed.  In my opinion a good title agent is worth his or her weight in gold.


Commercial Lease Terms are Important

If most landlords are chargina a $ 0.25 per square foot per month common area maintenance (CAM) fee and your landlord is charging $ 0.35 per square foot per month for similar space, that relatively "small" CAM charge difference would be $ 12,000 per year for a 10,000 square foot space or $ 6,000 per year for a 5,000 square foot space.  It's not peanuts; you need to know why your landlord thinks that because his expenses are higher, maybe because of building faults or overpaying for expenses, that you should be suffering because of those problems.


Are Commercial Short Sales and REO’s Disappearing?

While some reports indicate that the CRE mortgage default rate has continued to rise in 2013 it is my perception is that distressed sales (short sales and REO’s) as a percentage of total commercial real estate (CRE) sales are down.  That doesn’t mean that the CRE market is strong and it’s definitely not a sign that its “booming.”  What it does mean is that if you are searching to buy a commercial property there are relatively fewer distressed deals around as a percentage of all available deals.


Land Market Timing

Land markets, like most real property markets, react to what is effectively a “mob mentality.”  Everyone hears about big gains, they rush into the market until the “next greater fool” theory has exhausted the buyers, the market turns and then immediately many of the new owners want out.  That’s when the rush to dump land holdings begins and the roller-coaster is on the way down.


How Important is a Property "For Sale" Sign?

Agents know that there are only a limited number of things that they can do to get a listed commercial property sold.  Of course, being able to personally contact parties who they know are interested in a certain kind of property is the most effective marketing method, it can produce immediate results, but often agents find that their list of personally know buyers is limited and when they reach the end of it they have to become more creative. 


Will the Echelon Project Sale Turnaround the Las Vegas Commercial Market?

While there is no doubt in my mind that the approval, sale and development of the Echelon property will go a long way toward bolstering the Las Vegas Strip image, it isn't a pancea, its not going to solve many of the problems still notable in our commercial real property markets.


2013 Las Vegas Apartment Market

The fact that almost all of the top 20 most viewed Las Vegas properties listed on Loopnet have been multi-family residential properties is compelling evidence that the multi-residential market segment is what buyers of Las Vegas real property are paying attention to.  Its a good sign, it means that buyers are anticipating a positive movement.  


Are Expenses Increasing for Commercial Properties?

It's common sense if you think about it, rental rates have decreased dramatically over the last several years in Las Vegas, Henderson and Clark County, Nevada in general and expenses have continued to creep up.  So even though they may not have increased substantially commercial building expenses now take up an even larger share of the gross income that is typically derived from a commercial building.


Does Brokerage Size Guarantee Results

It's easy to assume that a large real estate firm must be a good one, and that it will get you the best results, but being large doesn't always make a firm the best choice.  I'm not going to argue the fact that doing the right things generally makes real estate firms grow, but once they gain some prominence the individuals who built them with exceptional customer service are often long gone.  Depending on the size and quality of your listing, you are going to end up with either a great agent or a new, less experienced one.