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    • Learn how to define and determine capitalization (cap) rates

    Published by High Associates. on May 20th, 2013
    cap rates

    “What’s the cap rate?” “What cap rate should I use?” “What was the cap rate on that property?” “How do I get the cap rate?” These are questions typically asked by real property developers, brokers and salespersons, appraisers, attorneys… almost everyone in the real estate business. The first question to be answered is, “What is a cap rate?” Simply put, a capitalization rate is any rate used to convert income into value. It’s an investment metric or a tool that measures a property’s investment potential. It’s equivalent … READ MORE

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    Highlights of ULI’s Emerging Trends Mid-Year Report

    Published by High Associates. on May 7th, 2013
    real estate

    Who doesn’t want to hear about what might happen in the future, particularly when it involves real estate and the state of the economy?  Stephen Blank, Urban Land Institute’s Senior Resident Fellow of Finance and the Capital Markets, joined the South-Central Pennsylvania ULI District Council in early April to share his mid-year trends analysis with about 100 industry leaders from the area. Industry forecasts are typically made in January or July, so the group was fortunate to hear from Blank about where we are and where we … READ MORE

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    Tax planning strategy, part 2: Navigating the good news of Taxpayer Relief Act of 2012 as it relates to real estate

    Published by High Associates. on April 29th, 2013
    tax planning strategies

    Last week we discussed the mechanisms for tax rate increases in the context of real estate investment. Fortunately, there was some good news for taxpayers in the 2012 Tax Act, and some planning opportunities are still available. Solid professional help with all of these changes is most definitely a prerequisite. A new tax system (the Medicare tax) is upon us, marginal rates have increased, and itemized deductions are again being phased out. Opportunities to consider: Qualified Leasehold Improvements The Act extended the opportunity to receive rapid depreciation … READ MORE

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    Tax planning strategy, part 1: Understanding the mechanisms of tax rate increases of the Taxpayer Relief Act of 2012 as they relate to real estate

    Published by High Associates. on April 26th, 2013
    real estate tax planning

    In what has become an annual course of events, 2012 came to a close with income taxes again getting the headlines in Washington. On January 2, 2013, the President signed the American Taxpayer Relief Act of 2012, the country averted the “fiscal cliff,” and life was good, right? Not exactly. While the Act did contain many extenders favorable to taxpayers, it also put into place the most significant income tax increases on some taxpayers in over a decade. Combined with the additional Medicare tax (passed in 2010 … READ MORE

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    Learn about the basics of building codes in commercial real estate

    Published by High Associates. on April 16th, 2013
    building code

    The International Building Code (IBC) was established to set rules and minimum standards of safety for design, construction, and maintenance throughout the United States. The International Code Council uses a public vetting process to develop, approve, and publish these codes, which originally were based on previous fire codes and regulations from insurance companies after many disastrous fires had resulted in significant loss of life. The codes are updated every three years, and they serve to establish consistent regulations to safeguard structures during events such as natural disasters, fire, … READ MORE

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    Sustainability: Opportunities your facility offers for lower costs and improved performance

    Published by High Associates. on April 10th, 2013
    building efficiency

    Slow economic growth, especially for a long stretch of time, presents unique challenges to most businesses. Many organizations choose to defer major expenses until prospects for recovery brighten. In this respect, existing facilities can become more attractive than new construction because minor improvements can yield substantial paybacks within a short time horizon. Further, making use of existing facilities that are still serviceable, rather than demolishing and replacing them, is in itself a key sustainability strategy. As of 2008, the Environmental Protection Agency (EPA) ENERGY STAR® program estimated … READ MORE

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    What tenants need to know about Estoppels and SNDA requirements

    Published by High Associates. on April 3rd, 2013
    commercial leasing

    In commercial real estate it’s not uncommon to come across estoppel certificates and/or subordination, non-disturbance, and attornment (SNDA) requirements in leasing documentation.  What are they, and why do landlords require them? Typically there are three parties affected by a commercial lease: the landlord (owner of the property), the tenant, and the lender (if the property is financed).  Most commercial real estate is financed, which means a lending institution holds a mortgage on the property. In addition, there is often a tenant(s) who leases the same property. Therefore, … READ MORE

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    Learn about the purpose and effect of subrogation waivers

    Published by High Associates. on March 28th, 2013
    subrogation waiver

    Most standard commercial leases contain mutual waiver of subrogation clauses related to property damages.  A tenant’s instinctive reaction may be to object to the clause, thinking it is beneficial only to the landlord, even though the clause is mutual.  Tenants may also think that agreeing to the waiver may have adverse consequences for the property insurance.  What is the purpose and effect of the subrogation waivers? Black’s Law Dictionary, Eighth Edition, 2004, defines subrogation as “…the substitution of one party for another whose debt the party pays … READ MORE

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    Sustainability: Identify opportunities for increased facility efficiency by tracking your usage and cost of energy

    Published by High Associates. on March 18th, 2013
    green

    As we mentioned in last week’s blog post about influencing facility occupant behavior for improved energy efficiency, approximately 30 percent of energy in commercial and industrial buildings is used inefficiently or unnecessarily, according to the Environmental Protection Agency (EPA) Energy Star program. This reality represents a huge opportunity for conservation and savings. Another area you may want to consider for better facility efficiency is the tracking of usage and cost of energy. Many utilities supply substantial, helpful information on their websites to help you track your usage … READ MORE

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    Sustainability: Influencing occupant behavior to make your facility more efficient

    Published by High Associates. on March 7th, 2013
    facility efficiency

    As of 2008, the Environmental Protection Agency (EPA) ENERGY STAR® program estimated that 30 percent of energy in commercial and industrial buildings is used inefficiently or unnecessarily. Since all buildings account for 40 percent of the total energy used in the US, according to EPA, this represents a huge opportunity for conservation and savings. The very best way to save energy is not to use it at all. The people who use your building every day have a big impact on its energy use. Examples of actions … READ MORE

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