INCO Blog

Important Factors in Considering Office Space Rentals

2025-02-18T10:59:57-08:00April 19, 2016 @ 11:28 am|

Choosing an office space signals a new phase in your business venture. Whether you’re in the early stages of starting out and growing your business, or you’re looking to relocate your current company for an expansion or reduction in force, there are similar factors to keep in mind while conducting your search. Most office space rentals come with a 3 or 5 year lease agreement, so the spaces you survey should be considered a comfortable option for at least that time period.

Whichever phase your business is experiencing, INCO Commercial’s expert agents can help you find a reasonable office space for rent that not only meets your current needs but is adaptable and allows for future growth. Our agents are strongly tied to the areas in which they serve, and can assist in choosing the rental space matching the demands and requirements of your company. While we can help you with the logistics and finer details, here are some things to consider for your choice in office space as your search begins.

Commute

With an existing company and team of employees, the location priority should be centralized among your employees, especially your top workers. Employees can experience discouragement in extended commutes, and even excessive spending in gas or car maintenance. A central, easy-to-access building will help maintain morale while also providing a competitive edge when recruiting new staff. If your business regularly welcomes clientele to the office, considering their commute time and ease is essential as well.

For those starting off on a new endeavor, INCO Commercial can help evaluate the type of location that would best serve your company. By looking at similar businesses in the area, we can examine which location variables impact their success, and attempt to replicate that for your own business.

Room to Grow

To give you an idea about how much square footage your company and its employees require, there are general industry suggestions, depending on the roles of your employees. For workers in a cubicle situation, the suggested space allotment is around 65-80 SF. Suggested workspace for a supervisor or manager position increases to 120-200 SF, and directors and executives come in at 250-300 SF. Of course, these are only suggestions, and it ultimately depends on how your company will use the office space.

Client space is another factor to consider: does your company regularly invite for meetings, etc.? Are smaller offices enough or would a conference room be more ideal?

Additionally, do you foresee your company experiencing a substantial employee expansion? Will your employees work in the office, or are some telecommuting? As a small business owner, it may be hard to project what the business will look like in a few years. Finding a rental within a building offering several different kinds of spaces may allow for some flexibility with the landlord. In the event that you require a different space sooner than your lease is up, you may be allowed to move within that building location.

INCO Commercial can work with you to analyze the immediate demands of your company, as well as project the potential growth and space requirements for the future.

Location

Surprisingly, finding an office space close to a similar business as your own can have more benefits than disadvantages. If your business frequently accommodates customers, it can help to be clustered near other businesses so the client can take care of errands or other matters in fewer trips.  Depending on the nature of your business, setting up shop near other like businesses may allow for a sharing of resources, such as expensive equipment, brokering services, or even collaboration on certain projects.

If your business does see clients on a regular basis, easy access to the location encourages client interaction, while a decentralized place can sometimes discourage ease of visits, and ultimately, a potential loss in business. In addition to proximity to your client base, the neighborhood atmosphere will also affect how your customers feel about visiting your business.

Surrounding Environment

The context of your business is just as crucial as the physical space you’re working in. Examine the parking situation for both your employees as well as your customers. Will either one have to pay? Is your company willing to compensate employees for paid parking?

Ideally, there are also cafes or restaurants within walking distance for lunches or meetings. Is it important that there is an opportunity to work out or walk during lunch and other breaks? Habitual rests are proven to boost overall productivity, which can help enhance your bottom line. Visit the location or building at different times of day to get an idea what the parking and traffic patterns are like. All of the features in the surrounding environment can affect happiness and morale.

INCO Commercial is committed to helping you find the space that best matches the needs of you as a business owner, and your company. After consulting with you and discovering the requirements and goals you have for your business, we set to work in strategizing the best approaches in negotiating lease terms and agreements with potential landlords in the local area. We work hard to find you the space that best matches the requirements of your business and finances. INCO Commercial will assist you in understanding all of your options before signing a lease. For more information, please visit our contact page and reach out to the location that would best accommodate you. We look forward to serving you and your business!

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Renovation vs. Relocation: Changing Your Office Space

2025-02-18T10:59:57-08:00April 18, 2016 @ 12:24 pm|

As a business owner, you may reach a point where your office space is no longer serving your company in the most advantageous way. On the fortunate side, maybe your business has grown or requires a different layout to better accommodate the business’s work flow. Perhaps your employee base is shifting and are established in different locations or work remotely, instead of being centralized in one city or office. These situations beg the question, “Is it better to renovate or relocate?” INCO Commercial can help assess your individual situation and compare the logistics of each option. In the meantime, here are some things to consider when deciding between renovation or relocation.

Renovations Could Be Distracting

Electric drill crescendos, hammers knocking away, extra people moving in and out of the office, employes shifted and possibly cramped into temporary spaces… All of these renovations occurring during business hours can be a huge distraction, and more importantly, cut into the productivity of the workers and the business owner. If your office accommodates client visits, your clients may be hesitant to visit or distracted by the dust and noise as well.

By investing in a brand new space, your business can still maintain normal operations at the initial location until the move-in date arrives. When the new space is ready and set up, everyone can relocate at once. That way, the transition is more seamless, and less disruption is experienced by your business and its employees.

Relocation is Sometimes More Cost Efficient

Relocating is often times more cost efficient than going through the process of renovation. In the initial stages, the pricing quotes and comparison may not seem too much different, or possibly even cheaper for a renovation. However, as the renovation work advances, it’s almost guaranteed the cost will as well. Unexpected expenses arise more often than not, another problem or obstacle surfaces, and the actual cost ends up much higher than projected.

The costs for relocation to a different site tend to be more straightforward, and the time frame for getting it ready more concrete. Another cost saver to consider is that your team is able to keep their productivity more stable in a brief move, versus working through ongoing renovations and changes amidst their work space.

Relocations Are Much Quicker to Accomplish

It’s also important to realize that a renovation is not always a timely endeavor. Office renovations are not a one or two-day occurrence, but can last weeks or even months, depending on the extent necessary. The distractions that wear on day to day can affect the performance of the overall company and ultimately even the bottom line. Taking a day or few to relocate everyone expedites the transition period and everyone can return to business as usual.

Renovation Restrictions by Building Owner Regularly Apply

Permission is required for any physical changes to the structure, since your business is most likely renting the office space from a commercial building owner. If the building owner does allow for renovations, there are most likely limitations as to how much you are actually able to do.

INCO Commercial can help you find a new space that best accommodates your business’s overall needs. We realize not just the physical space is important, but the traffic flow and local demographics that feed into your business. We also thoroughly examine the lease terms before you make a commitment to help you determine which options are available in case you want to do any minor changes or improvements to the space before moving in or possibly down the line again. With INCO Commercial, you will always know what you’re in a position to do or not do in accordance with your lease agreements.

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As you carefully consider the options, INCO Commercial can help you assess what would give your business the best possible space with the fewest additional costs or distractions. We will help you examine which would be in the best interest of your company, as well as allow your daily business operations to continue as smoothly as possible. If relocation is the best option, our agents’ intimate knowledge of the local area can help guide you to properties that would best fit the demands and dynamic of your business.

INCO Commercial is here to help you evaluate any decisions to renovate, relocate, or assist with any other issues or possibilities concerning your business. For larger scale projects involving new site development, INCO’s affiliate, IMC Municipal Consulting offers real estate and community development advisory services to assist in project formation, site selection, economic incentives, development assistance, and more.

Explore the rest of our website for a full explanation of INCO Commercial’s services, and visit our contact page to find the office location and contact information most convenient for you!

 

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Mistakes to Avoid in Commercial Real Estate

2025-02-18T10:59:58-08:00March 23, 2016 @ 3:22 pm|

Life is full of mistakes and learning experiences, and commercial real estate investments are not immune to these trials and errors. INCO Commercial works thoroughly to ensure a smooth transition and avoid detrimental mistakes, providing guidance and employing our expert knowledge every step of the way. Though we’ll be working hand in hand with you on each deal, here are five things to keep in mind as you make your way through the process.

Don’t Be Afraid to Rely on Your Team

Even with a commercial real estate deal that poses few challenges, the process is still incredibly involved, possibly intimidating, and one requiring a meticulous eye. Having a team like INCO Commercial behind you every step of the way will save you the time, trouble and worry of having to face this process alone or with an inexperienced person. Whether you’re a seasoned investor or just starting out, having expert agents working closely with you will help streamline the process, in addition to ensuring all of the fine print is covered. An INCO agent will work with you to thoroughly understand your requirements and goals for your next investment, and with their extensive knowledge of the local area, will match properties that best fit your needs.

Lack of Due Diligence

The last thing you want to find out after you’ve solidified your deal is that your property has unexpected structural issues, or you’re limited because of zoning restrictions or other land-use regulations, or there are problems with the title, for example. This is why it is extremely important to perform due diligence on the property before committing to a deal. It’s definitely worth the cost in the end to have not only the physical property thoroughly examined, but its history, the survey, down to important documents such as the leases (with any exhibits and attachments), insurance policies, and title policy. For a commercial property with tenants, copies of concessions made to tenants, rent roll, financial statements, credit information and reports from tenants, are just some of the items to review.

INCO Commercial can help you outline the entire process and cover every detail. We realize that proper due diligence can truly help you make an informed decision on the property and help prevent you from dealing with unexpected surprises/expenses down the line.

Awareness of Local Market Conditions

Paying attention to local market performance can give you tremendous insight on the success of your upcoming venture. A great property in an area with declining demographic trends will do little or nothing for you; that’s why it’s necessary to have an overall picture of the property within its context. However, even if you have limited knowledge of the local market conditions, this is where our INCO Commercial agents truly shine. Our compassionate agents possess extensive knowledge and dedication to their fields. We’ll be sure to compare your interests with a particular property to current and projected trends for maximum profits and benefits.

Mis-Managing Finances or Being Overleveraged

Managing your finances to avoid financial disaster sounds like a no-brainer, but it truly requires the meticulous attention of watching each expense or dollar that crosses your business path and making realistic profit projections. After you’ve evaluated your finances for appraisals, surveys and other due diligence-related matters; don’t forget the taxes and closing costs, not to mention any costs for repairs, replacements, and upgrades. Identify what kinds of improvements can be made on the property that could potentially help with the cash flow of your business, and which features could hinder profit.

Make sure you have considered all of the financial figures concerning the operating expenses. Knowing which are hard figures and which are pro forma – even a given CAP Rate could be pro forma – will help with realistic financial projections.

Additionally, if you have other properties, be careful not to over-leverage your investments. It’s common to leverage in property acquisitions, for both beginning and seasoned investors, but again, watch your numbers. Having those real operating expenses from the property’s performance history can help keep your predictions and expectations realistic.

Evaluating Your Risk

If you’re investing in a property where you’re depending on tenants to fill the spaces, there’s always a chance that your tenancy will not fill as quickly as you had anticipated. INCO Commercial will be sure to analyze other similar properties in the area and evaluate the length of time it took for their vacancies to fill. This can help give you an idea of how your property will perform, but remember, each location will obviously have a slightly different dynamic.

Be sure to have a plan in place if your venture is really not panning out as you had hoped. While the ideal is that it’s not necessary, an exit plan strategy provides a safety net for an investment that may not work out. Also, ensuring that there are enough finances to cover a time when an unexpected expense may arise; a major repair, or a tenant vacating sooner than expected. Be sure that your sponsor is able to cover you in a time where you may need more financial coverage than expected; a major repair or a tenant vacating sooner than expected.

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These are a few things to keep in mind with your next commercial real estate venture. INCO Commercial will provide you with the assistance you need to close your next real estate deal. Explore our website to view our commercial real estate inventory, as well as our retail and restaurant inventory. Check out our Contact Page to fill out an inquiry or find the INCO phone number and location closest to you! We look forward to welcoming you to our INCO community.

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5 Trends in Commercial Real Estate for 2016

2025-02-18T10:59:58-08:00March 21, 2016 @ 1:04 pm|

The Commercial Real Estate, or CRE sector appears to have a stronger foothold in comparison to previous years.  Investors are seeing increased performance across all property types and markets as the US market is picking up speed again. Even with these encouraging signs, it’s understandable for investors, especially new investors, to be overly cautious or reluctant. With INCO Commercial, we can help alleviate your fears with a comprehensive approach to your commercial real estate investments. Our expert agents are highly knowledgeable and specialize in the local market and can guide you each step of the way. Though you don’t have to worry about navigating the commercial real estate landscape alone, INCO Commercial has compiled for you a list of 5 trends we expect to see for the 2016 year.

Global Urbanization:

Urbanization is on the rise throughout the world, and especially continues in the U.S. Millenials are seeking access to places to jumpstart their careers, and Baby Boomers are downsizing their homes,  moving towards more urban places of convenience. It has been noted that, the United States urban population has grown by 12.1% from 2000 to 2010, over the California’s total increase of 9.7%. Additionally, suburbs are beginning to take on a more urban appearance, with mixed-use development and the ability to reach more places in walking distances, versus having to rely on vehicular transportation. As this trend of urbanization continues, it is definitely creating more demand for home, retail, offices as well as other property types.

Unemployment Falls, Demand for Space Rises

With unemployment rates projected to fall below or hover around 5% this year, this is also creating a demand for commercial real estate space in the form of multi-family housing, office space, industrial/distribution space, and even retail spaces. The growth in job opportunities and income has created an optimistic mood for California, and reveals continued confidence among developers, as noted by the latest Allen Matkins/UCLA Anderson forecast for commercial real estate. This job and income growth has also limited the supply in office spaces, to which developers have happily answered with starting new projects, and projecting even more for 2016.

Spike in Interest Rates:

Interest rates look to increase this year; though predictions can vary greatly, it is more likely that the Federal Funds Rate (FFR) will increase at least to 1% this year, along with the treasuries of 10 years moving slightly higher towards 3% mark. There are varieties of variables responsible for the interest rates being low for now, like the strong dollar as well as low inflation. However, the Fed is likely to proceed with caution and examine the consequences of any action before implementing something that would stir current economic growth trends.

Increased Capital Flows:

Increased international capital into the U.S. market will likely continue and even increase. The U.S. real estate market is viewed as the most stable and secure marketplace, making it an easy option for many investors. According to the research company, Real Capital Analytics (RCA), 2015 saw foreign purchases alone of U.S. real estate assets increase to $62 billion, with Canada, Norway, China and Singapore as the countries with leading investors. These types of investments are only expected to increase in 2016.

Shifts in the Use of Retail Space

Clothing and department stores used to dominate the retail landscape, but lately we have seen the fall of even some of the major retailers. JC Penney, Sears, Kohl’s, and Kmart, to name a few, are among those closing their stores. Despite these trends, there is an anomaly named Amazon who successfully opened their first retail storefront last fall, and project opening more in the future. Some analysts predict that many successful retailers will continue to offer a combination of physical stores and online experiences as well. Many retailers are also transitioning their space from simply a place to buy merchandise to an all-around experience for the consumer.

However, for those traditional retailers closing stores and leaving vacancies, we are seeing an increase in other industries occupying these spaces. Technology-based stores do well since their products are in demand, and profits easier to turn with the more expensive price tags. Health and fitness are consistently popular trends, and many gym, activity, and fitness centers have capitalized on people’s continual quest for physical self-improvement.

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With the overall 2016 forecast looking like a successful extension of 2015, let INCO Commercial take your investment goals to the next level this year!  INCO Commercial works with each client to assess and evaluate their business goals and objectives, and find the opportunities to best suit their needs. Our affiliated services, CORE Property Management and IMC Municipal Consulting can also assist in handling full-service property management or real estate advisory services, respectively. Visit our contact page to fill out an inquiry form, or find the INCO location most convenient for you and give us a call!

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Leading Commercial Real Estate Company Welcomes New Agents

2025-02-18T10:59:58-08:00March 9, 2016 @ 12:30 pm|

Press Release: Leading Commercial and Industrial Real Estate Company INCO COMMERCIAL Welcomes New Agents 

This morning, an INCO Commercial press release featured our newest members to the team. We are enthusiastic that our new additions mean INCO Commercial can extend our reach even further throughout the Long Beach, Irvine and Riverside communities, and continue to provide our clients world class service. We look forward to promoting even more success and growth with our newly-expanded team!

Click on the link below to view the full press release.

Leading Commercial and Industrial Real Estate Company INCO COMMERCIAL Welcomes New Agents To Provide Better Service to the Community

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Believe – Girls Fly! Race Day

2025-02-18T10:59:58-08:00December 30, 2015 @ 12:00 pm|

Join INCO Commercial for horse racing and casino fun!

INCO Commercial enthusiastically invites you for a day of fun at Santa Anita Racetrack! Join us on January 30th, 2016 at 12pm for Believe – Girls Fly! Race Day. This charity event benefits Girls Fly!, an organization promoting girls and women to realize their life dreams. This event will be held in the exclusive Chandelier Room at Santa Anita Racetrack, with valet parking and private escorted entry. Enjoy delectable dishes from amazing chefs, a chance for entry to the Winners Circle, and ample networking opportunities among celebrities, entertainers, elected officials, athletes, business leaders and more! Don’t miss the auction, which includes hot-ticket items from the entertainment, fashion, and sports industries.

Believe – Girls Fly! Race Day will be a day to honor women and their avid supporters. Congresswoman Judy Chu will help honor Judge Consuelo B. Marshall as well as fashion designer Sir Keith Holman, for his tireless support of women equestrians. The Chandelier Room at Santa Anita serves as a lovely venue for this event, as Girls Fly! focuses much of their efforts within the equestrian, athletics, aviation, and the arts sectors. Santa Anita Racetrack naturally lends itself to equestrian and athletics interests, but its history and charm can entertain anyone.

INCO Commercial is a proud sponsor of the Girls Fly! organization, which empowers girls and women to realize their dreams. Girls Fly! embraces females from all walks of life and through mentoring and other engaging experiences, provides them with the tools and inspiration they need to succeed. Their curriculum emphasizes science, technology, arts, and math activities for real-world and practical experiences. Girls Fly! is an inclusive program and accommodates individual needs to ensure every participant’s dream is within her reach.

INCO Commercial is committed to helping build a strong, successful community. We believe in supporting organizations that serve to enrich and uplift our local area. By empowering individuals to find success and integrity, we are creating stronger members of our community for everyone’s benefit.  INCO Commercial is honored to be a part of this and other wonderful charities and events.

For event details and ticket information to this charity event, please click the link Believe – Girls Fly! Race Day .

We look forward to seeing you there!

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The Turnkey Advantage: The Benefits of Owning a Turnkey Restaurant

2025-02-18T10:59:58-08:00December 16, 2015 @ 3:16 pm|

INCO Commercial specializes in commercial and industrial real estate, which is commonly associated with apartment buildings, warehouses, offices, industrial parks, and more.

We are also involved with restaurant spaces, some of which can be purchased as turnkey businesses. Turnkey restaurants or businesses are an excellent opportunity to make an investment and have the potential of generating cash flow from the first day you take over the operations. Here we explore the benefits of owning a turnkey restaurant, and other things to look out for.

Advantages of Owning a Turnkey Restaurant
The known benefit of a turnkey restaurant is that everything is already established and ready to go. There is no time expense of building up and designing your space or developing a business plan; and if it’s a full package turnkey business, then training and management support are already in place and only the investment capital is required. It’s a great way for newer business owners and restaurateurs to gain experience in the industry with a reduced risk of failure compared to starting a brand-new business from the ground up.  

Cost Considerations
Often turnkey businesses are well-established franchises with a recognizable brand and a solid customer base. A large up-front cost can be expecting in acquiring a turnkey, but our agents can help distinguish whether there has been an exorbitant mark-up, and, if possible, even inquire with other franchisees if necessary for comparison. A franchise fee, and on-going royalty payments to the parent company are also common, or their money may be earned on proprietary products or recipes which must be purchased for the franchise. The regular operating costs of a restaurant are still applicable: utilities, rent, product inventory, insurance, building maintenance, and so on.

Research
If this franchise is not a new location, finding out why the previous franchisee is selling can give insight to the success of your future investment. The reasons can be harmless; perhaps they were instrumental in getting the business up and going, and it’s time to move onto their next venture, or maybe they are simply retiring. Even if the reasons may indicate a slight risk, it could have been a poorly managed operation, and you may have the skillset and strategy to turn it around and see success and higher profit margins. We are ready to help you examine all of these factors and determine whether a particular turnkey is the right investment for you.

If you are planning on taking over an existing operation, INCO Commercial can guide you through the necessary particulars to get the overall picture. A review of the full inventory can be requested to get an idea of the regular purchasing costs. Finding out if the current staff will remain or if a hiring process is necessary is important; sometimes the parent company can assist with hiring procedures, but typically it’s up to the franchisee. If the current staff does agree to stay on, expect a discussion of salary negotiations, which often happens during a time of ownership or management change. If the turnkey is of a well-established franchise, then a good marketing plan should already exist. However, if it’s a newer brand or lesser known business, then discovering what kind of marketing strategies have been successful (or not) in the past can help guide the planning of your marketing campaign in the local area.

INCO Commercial will also assist in performing due diligence on a prospective turnkey business to protect against any surprises and ensure your decision to invest will be an informed one.

Things to Consider with a Turnkey or Franchise Business
A turnkey franchise is great for people who have the investment capital and are looking to enter the restaurant industry without all of the risk of building a business or brand from the ground up.

However, there are some limitations, which largely have to do with creative and procedural decision-making. Because the customer base of a well-established franchise is expecting the same quality and similar experience from each location, franchisee operators must follow strict guidelines provided by the franchisor. These already-proven models guarantee the success of the franchises and ultimately the parent company. Any breach of contract or failure in complying with the standards are grounds for termination of contract between a franchisor and franchisee owner. Expansion is another limitation; franchisors will not want individual franchises competing with each other, so owning two of the same franchise within a small geographic area is unlikely.

Is a Turnkey Restaurant for You?
The largest advantage of a turnkey restaurant still remains that the business is generally ready to go when you take over operations. Depending on the kind of turnkey restaurant, you may want to consider a few things about your business style before choosing what you’d like your investment to look like.

If your turnkey restaurant is part of a well-established franchise, make sure you are agreeable to working within a highly structured organization. If you enjoy more creative control or flexibility, then independently owning your own restaurant might be the better direction for you. If you’re at the early stages and unsure which path is better, INCO Commercial always performs a Client Needs Assessment to help us understand your priorities and requirements. We can help you better understand your options and which would be the right match for you.

When you’re ready to venture into the restaurant industry, whether you’re looking for a turnkey restaurant, or break ground and independently own and operate an establishment, INCO Commercial is here to help! Check out our inventory of turnkey and restaurant spaces, and contact us through our website or give us a call at one of our locations most convenient to you!

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Different Types of Leases on Commercial Property

2025-02-18T10:59:59-08:00December 7, 2015 @ 5:46 pm|

Buying and owning commercial property is a great investment, but sometimes buying outright isn’t possible; therefore, leasing is an option that many commercial property investors take advantage of.  If you’re looking into leasing commercial property, there are several types of leases to explore before making a commitment. The INCO Commercial agent working with you will cover these in detail, but we’ve provided an introductory overview of the leases you can expect when looking into the commercial real estate market.

Gross and Net Leases
Two types of lease categories are gross and net leases, and the different subtypes of these leases have to do with the degree of financial responsibility from the lessor and lessee.

Gross Lease / Full Service Lease
The tenant pays only the rent, which is designed to cover all of the expenses the landlord needs to pay on the property. Usually this includes general janitorial services, property maintenance, and utilities as well. However, if the use of any of these may be ‘excessive’ because the  business has a high electricity demand, for example, these charges can fall back on the tenant. The tenant is also responsible for paying their own property insurance and taxes. The rent itself may seem higher than other types of leases, but remember, it’s all-inclusive.

Modified Gross Lease
While the payment is still a lump sum, some of the net payments like pro-rata property taxes, insurance, and CAM fees (Common Area Maintenance) can be included along with the rent. The tenant typically has the ability to negotiate which fees they’ll be paying; it varies whether utilities or janitorial services are included.

NET LEASES
Net leases have a lower base rent, however, the tenant is also responsible for paying part of the expenses associated with running or maintaining the property. The triple net lease is the most common, which is listed first. For example, almost all retail spaces are triple net leases. However, single and double net leases do exist, and are listed below. In the different types of net leases, the tenant assumes more financial responsibility at the next level. In each of these leases, the tenant is responsible for their own utilities and janitorial services.

Triple Net Lease (NNN Lease)
This is the most popular, and a favorable lease among landlords, as the tenant assumes much more of the financial responsibilities. The name refers to the three ‘nets’ the tenant is responsible for paying: net taxes, net building insurance, and net CAM fees, in addition to the base rent.  

Double Net Lease
The tenant is is responsible for the base rent, a share of the building’s property tax, and the property insurance. The landlord still covers other building or operating expenses.

Single Net Lease
The tenant is responsible for the base rent, plus a share of the building’s property tax. The landlord takes on the other operating expenses of the property.

With any of these leases, some of the details to consider include the terms of the security deposit, what kind of signage is your business allowed, clauses specific to co-tenancy, sub-leasing or exit-plans, and what kind of escalations in rent or fees (e.g., CAM fees) may occur.

INCO’s Eye for Detail
Since the specifics of the fees, especially the CAM fees, can vary, the INCO Commercial agent working with you will ensure clarification of all fees, caps, and lease contract terms, and help you determine the best choice based on your requirements and financial circumstances. We will also help you go through the provisions of your lease, and negotiate any adjustments where possible, to maximize your benefit.

Master Lease Agreement
Another type of lease is the master lease agreement. This is basically leasing with the option to purchase, similar to lease-option when pertaining to a single family residence. The master lease agreement can work with most commercial real estate properties that are generating some kind of income, such as apartment buildings, mobile home parks, or retail stores.

The master lease agreement is often favorable to both buyer and seller of the property. In a master lease agreement, the buyer gains equitable title to the property, which means all of the profits and tax benefits go to the buyer. In this arrangement, the buyer is responsible for everything involved with the property: management, maintenance, utilities, taxes, and so on, while the seller remains the legal owner of the property and receives monthly lease payments from the buyer. Another perk for this arrangement is that the banks are not involved in this process; this is beneficial if the buyer has little or no experience or credit, and it’s less risky for the buyer because the title and any loan on the property are still in the seller’s name. The buyer does not need to put money down, and also has the option to purchase the property after an agreed-upon number of years.

The great benefit to the buyer is, again, the profit on the property. After the monthly lease payment and operational expenses are paid, any profit gained goes only to the buyer. If the buyer decides to increase the value on the property with upgrades or improvements, or raises the rents on the tenants – the money from those profits go to the buyer.

The INCO Commercial agent working with you will ensure that all of your bases are covered, and that everything concerning the terms of your lease are clearly understood. Additionally, we will look closely at the type of lease and the terms of the lease in the context of the property. The length of the lease also factors in, and often the most tenant-friendly type of lease is a short-term one, with multiple options for renewal. With this kind of a lease, it’s easier to assess your situation and decide if, at the end of the lease, whether to remain with the space because it serves you well, or if it’s time to move because the space is either too big or too small.

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Our INCO Commercial agents are integral in the process of acquiring or leasing a commercial real estate property. Because our agents have intimate knowledge of the area, they are highly familiar with the history and context of the local market, and which types of properties will best serve our clients needs and requirements.

Let us know when you’re ready to make your move in commercial real estate! We specialize in commercial real estate brokerage, and can help you in the acquisition, leasing, or disposing of a property. Explore the rest of our newly re-designed website, www.incocommercial.com, or find out how to contact us at any one of our three locations, /contact-inco/! We look forward to working with you on your next venture!

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Purchasing Commercial Real Estate Property

2025-02-18T10:59:59-08:00December 3, 2015 @ 1:47 pm|

Purchasing commercial real estate property can be an intimidating experience, as there is so much more to consider than a residential real estate purchase. The process itself can be overwhelming, especially for a first-time investor, but working hand-in-hand with an INCO Commercial agent will greatly ease the burden. Our agents are armed with years of experience, expertise, and local market knowledge. We are confident we can help you find the best property at the right price to suit your needs.

The following is a basic overview of things to consider and expect when preparing for a purchase in commercial real estate.

Determine Your Objective

You probably already have a good idea of the intended use of your future commercial real estate property. The use of the property will ultimately help determine the importance of other factors when purchasing your ‘ideal’ property.

When our clients come onboard with INCO Commercial, we perform a Client’s Needs Assessment to ensure that we fully understand our clients, their goals, and requirements for the property. Our philosophy is to keep our organization and business client-centered, and getting to know our clients is top priority in order to best serve your needs.

Analyzing the CAP Rate and Operating Income

Examining the capitalization rate (CAP Rate) and operating income are also key factors in determining interest in a property. Net Operating Income (NOI) is the income the property generates, less the cost of operating expenses.

The CAP Rate is the ratio of NOI over the cost or value of the property, just one of the metrics used in measuring the value of real estate. Basically, analyzing the CAP Rate can help you figure out how fast the investment will pay for itself, and also give insight to the risk factors associated with the property.

Financing

How will you be financing this endeavor? Know how much you can afford to pay, and who you might be financing through. If you’re not familiar with some of the commercial real estate terms, we can help you understand what is your LTV (loan-to-value ratio), DSC (Debt Service Coverage Ratio), Cap Rate, Cash on Cash, and Ad Valorem, for example.

Location

This is the most clichéd, but truest components when it comes considering any property. The location has to serve your investment’s purpose well.  INCO Commercial is committed to finding the best match between you and a property or space to fulfill your interests.

We’ll help you consider the intention, requirements, and features of a prospective property. If the intent of the property requires heavy foot traffic for customers to interact with your business, then obviously looking for something in an urban or downtown suburban area is desirable. Having a good understanding of your customer base also helps in choosing location, to determine where those customers are and how to get in front of them. If this is your first venture and you’re unsure about your customer demographic, observe your close competitors and see what kind of clientele they attract.

Access for people with disabilities and adequate parking are important things we will also consider. On one hand, being in a high traffic/high volume area is great, but losing out on business because your customers can’t find parking or access and go elsewhere is a detriment.

We discuss the positives and negatives if the neighborhood is undergoing gentrification; the finished product could be ideal for your business, if it coincides with your timeline, or it could hold back traffic flow if it doesn’t. If you’re requiring more of a warehouse or distribution space, an industrial center closer to a freeway might be more ideal.

Expansions or the need to lease part of the property is a real consideration which we will address as well. Would your business or the prospective property allow for expansion in that same location? Or, going the other way, would you consider leasing the extra space if it ended up being too much for your needs?

As part of the due diligence process, INCO Commercial will also help you discover the property’s past uses and limitations and how that factors into your purchase. The physical demands placed on the property or the structures could mean potentially costly repairs for you down the line. Our agents are well-versed in the type of zoning laws and building codes particular to the local area, which determine what kind of alterations are legally allowed.

Allow Time… and Due Diligence

There’s a lot that goes into changing hands on a commercial real estate venture, so naturally the process could potentially take longer. Keep in mind that it is actually both the buyer and the seller’s responsibility to do due diligence on the property, which may or may not end up working out for you in the end. This process in itself can take a few months, but it is worth it to protect yourself from a bad deal. Our agents at INCO Commercial will ensure the due diligence process is meticulously handled and guide you through accordingly. We work hard to make sure your money is invested wisely and that the property best matches your needs, but sometimes unexpected reveals from the inspections, reports, or the appraisal can negate interest. Expect to make a small investment towards due diligence, but know that it can save you from some potentially unpleasant surprises and their subsequent costs, and/or help confirm your choice in property.

Letter of Intent or Purchase Contract

When you are ready to make a serious offer, INCO Commercial can help draft a Letter of Intent (LOI), and/or a Purchase Contract. An LOI, as the name suggests, is a typically non-binding document (unless declared otherwise) outlining your intent, as the buyer, to purchase the specific property at “x” price, along with a summary of the principal terms and deal.

The Purchase Contract is the legally binding document which details in full the terms of the transaction, listing of parties involved, adjustments, recitals, conditions to closing, etc. for example. Our agents determine for each individual case whether both an LOI and Purchase Contract are necessary, or just the Purchase Contract.

These are just some of the aspects of purchasing a commercial real estate property. INCO Commercial is highly dedicated to our clients; we work closely with you through each step of the process. Our extensive local knowledge, experience, and commitment to your best interest drives us to find the right match in order to maximize your profit gains. Check out our website for more information, or contact us to start your new business venture today!

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Press Release: INCO Commercial Commercial Launches New, Comprehensive Website

2025-02-18T10:59:59-08:00November 17, 2015 @ 2:25 pm|

This morning, an INCO Commercial press release was delivered highlighting our newly redesigned website. Our goal was to create a greater ease of use for the customer, with information about our company and property listings readily accessible. We are pleased with the outcome and know it will promote an improved user experience all around. Please click on the link to view the press release.

Renowned Commercial and Real Estate Company INCO Commercial Launches New, Comprehensive Website

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Long Beach Business Journal Features INCO Commercial’s Strong Community Ties and Expertise

2025-02-18T11:00:00-08:00November 12, 2015 @ 2:43 pm|

We would like to thank the Long Beach Business Journal for featuring a story on INCO Commercial’s longstanding presence and commitment to the community! INCO Commercial’s strong connections with the area have greatly informed our expertise, and our agents are deeply invested in bringing success to our clients and the greater community. Please click the link below to read the interview.

INCO Commercial: Real Estate Firm’s Deep Roots in Long Beach Lend to Its Expertise

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INCO Commercial Launches New Website

2025-02-18T11:00:00-08:00October 29, 2015 @ 12:22 pm|

INCO Commercial Launches New Website

In continuing our commitment to the highest quality customer service, we are proud to announce the launch of our new, redesigned website! We now offer a better user experience, making site navigation easier and more intuitive, and highlighting all of our services, specialties, listings, and more.

Who is INCO Commercial?

INCO Commercial is a family of companies which includes IMC Municipal Consulting and CORE Property Management. With concentrations in commercial and industrial real estate, including restaurant spaces, turnkey businesses and more, we are happy to assist you in the acquisition, leasing, and sales of commercial properties. Our clients and their business interests are the top priority for us; we recognize each one as a unique endeavor and specifically tailor our services and property matches to meet their individual needs. Over 40 years of experience has confirmed that our agents are experts in local knowledge and regional reach, and they are well-known in the community for building lasting relationships with their clients.

Our offices are based across the southland, with our headquarters in Long Beach, giving us an advantage over our competition with intimate market knowledge, and our agents’ deep connections to the local community through private, public, and nonprofit sectors.

INCO Commercial Serves You

INCO Commercial is dedicated to providing exceptional, client-oriented commercial real estate brokerage and advisory services. By assessing and evaluating our clients’ goals and objectives, we work to ensure finding the best opportunities to suit your needs. From industrial real estate, to multi-family residentials, retail spaces and so much more, we do a full assessment to consider a suitable match to maximize your profit gains. Because of the internal structure of our company, we offer extremely competitive pricing with no loss in customer service quality.

We would also like to take this opportunity to affirm our special expertise in the restaurant properties. In addition to buying, selling, or leasing property spaces, we can also help you in the acquisition and sales of turnkey businesses. If you’re ready to hit the ground running and purchase an existing restaurant, INCO Commercial can help match your interests with the right restaurant.

We mentioned that INCO Commercial is one of three branches in a family of companies:

INCO Commercial: Handles all commercial real estate acquisitions, leasing, and dispositions.

CORE Property Management: Equipped to handle full-service property management, or provide assistance in a few areas of need.

IMC Municipal Consulting: Provides real estate and community development advisory services, and serves as the liaison between our clients and local government agencies to ensure compliance with applicable regulations.

Once you’ve acquired your space or real estate, CORE Property Management can help maximize the potential return of your commercial or industrial property. Whether you require complete management services from top-down, or just special assistance in a few key areas, CORE Property Management is ready to fulfill your needs. Have confidence knowing that your property maintenance is aligned with all current state and federal regulations, even down to the accounting and tax management, if you desire. Discover the entire list of services CORE Property Management offers.

With land acquisition or sales, IMC Municipal Consulting can take the burden off by managing all of the regulatory paperwork and interactions with local or government agencies. IMC Municipal Consulting also provides advisory services for large-scale economic development projects, with guided assistance and unique strategy. Learn more about IMC Municipal Consulting.

The Agents of INCO Commercial

At INCO Commercial, we have a collegial team of agents who work together and share their expertise. INCO Commercial is 100% broker owned, and the traditional corporate hierarchies do not exist within our organization. Each of our brokers and licensees participate in profit-sharing, with several being equity owners as well. With no management overhead expenses, combined with a vested interest by the brokers, INCO Commercial can afford excellent customer service at such competitive rates.

Our agents are no strangers in providing world class service to our clients. In addition to years of experience in commercial and industrial real estate, many of our agents have devoted much of their personal time to the community and non-profits. Our agents have strong client relations with the expertise and local knowledge to lead our clients to success.

Meet our agents and find out how they can assist you. Though we are proud of the strength in our current team, we are looking to expand our INCO Commercial family! Contact us to learn how you can join this group of highly knowledgeable, experienced, and compassionate individuals.

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INCO Commercial is excited about our new website launch, but rest assured that the unwavering commitment to our clients remains the same. We are with you every step of the way, through acquisitions, leasing, property disposals and more. Learn more at our new website, www.incocommercial.com !

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