Office Location
35 RepliesJump to last post
This wouldn’t normally be my area to post, but going through the process of purchasing an office building and having a client who is a commercial real estate appraiser, I’ll add a couple of words of wisdom…
1. Now is a GREAT time to buy. If you are at a level withing Jones that they will let you buy the real estate and lease it from them, DO IT. My friend tells me that national average right now for completed sales on commercial property is about 78% of list. I close Monday on a 1,364 square foot office building with about a 900 SF basement under the main part. List was 88,900 and I bought for 62,500. I'll put another $50K in it getting it to where I want it and based on the appraisal the bank will provide about hald of that and I'll have to come up with the rest. At $1,500-$2,000/month rent, it will easily cash flow and even allow me to take more income out of my business without paying social security/medicare taxes on it. 2. Unfortunately, appraisal values are depressed and banks are much stricter on credit. My property appraised for $110K as completed, which is about what I'll have in it. I think it will easily be worth $150K when I'm done, but that's the nature of today's market. Best financing I could get was 80%, 5-year fixed on 15-year amortization at 5.75%. Three years ago, banks would have fallen all over themselves loaning 100% of appraisal for a 795 beacon score. When things are tough, opportunities present themselves and I frankly think this is a great time to buy real estate...unfortunately, it's a sucky time for the rental real estate I'd like to sell...Thanks for the responses guys. Looks like it all differs by location as to what EJ will allow. I just put my notice into my employer and will start my study for success training on the 29th so I have a ways to go to worry about an office but they say to keep it in mind and I have an ideal one in mind as motivation and I won’t be passive in taking just any office when I get to that point. BTW I met an FA the other day with an office and no BOA as he was just starting out and soon he will get one but he said only PT. Is this common at the beginning or him just being P&L savvy?
[quote=fa09]Thanks for the responses guys. Looks like it all differs by location as to what EJ will allow. I just put my notice into my employer and will start my study for success training on the 29th so I have a ways to go to worry about an office but they say to keep it in mind and I have an ideal one in mind as motivation and I won’t be passive in taking just any office when I get to that point. BTW I met an FA the other day with an office and no BOA as he was just starting out and soon he will get one but he said only PT. Is this common at the beginning or him just being P&L savvy?
[/quote]
I remember Jones giving me two locations to choose from. One was a vacant intersection; the other was a residential neighborhood!
When you’re prospecting or just driving around, look for a good location and then get involved, like the other guys recommend.
B&H is right. Get involved. St Louis has “open locations” based on # of households, # of residents over 50, investible assets, etc. They can’t identify “cross-streets” based on whether or not there is any available commercial real estate. My recommendation - find the area you want to go to, and tell them that’s the area you are going. Even if it’s not where they wanted you to go, just tell them there’s no other real estate. They’ll buy it.
Fire them Windy, seriously. It’s your business, dig your 6 inch heels in and tell them how it is. Tell the local broker they are either on your side or your finding someone else. DONE.
Will you have time for walk-ins? You may need an office somewhere off the beaten path!lol…Thats the problem. I’m not working with the broker, Colliers is (The company that does our leasing agreements). In fact I don’t even know who the broker is, or their number.I did however find a better office space than the one they want, that is on a busy intersection. The guy is whining because its quite a bit more expense but there is probably not a better storefront location in this city…especially for high traffic, visibility reasons.
Wind - I believe he is making a comment on the fact that you get so much business walk-ins would be a nuisance (they usually are - I had a walk-in when I was at Jones - both were on disability with no assets).l
Thank you Moraen…
Window- You would be better served to have an office that is easy to give directions to and a parking lot easy to get in and out of (low traffic volume). I never knew EJ had an office in my town until a year ago. There is over a dozen and 6 newbs looking. 99% of your business will not require someone to come to your office anyway.It’s good to have a visible office.
'Hey Mr. Prospect, I’m over on Main Street, next to the (popular restaurant.)'
People will remember you when they see the place. And if they see the place often enough, it’s like advertising.
Parking is also extremely important for many people.