Long Beach

INCO Commercial Honored at Long Beach Chamber of Commerce Gala

2016-07-27T12:23:22-07:00July 27, 2016 @ 12:14 pm|

Press Release: INCO Commercial Receives Prestigious Industry Award

A press release issued this morning featured INCO Commercial’s receipt of the distinguished Industry Award.  This, among other certificates of recognition, were presented last month at the 125th Long Beach Chamber of Commerce Gala and 20th Anniversary celebration of the Long Beach Commercial Real Estate Council.  INCO Commercial is proud and honored to be recognized for our efforts in serving and developing the local community!

Click on the link below to read the full press release:

INCO COMMERCIAL Receives Long Beach City of Commerce Industry Award

Benefits of Investing in Commercial Real Estate

2018-12-19T12:43:39-08:00July 25, 2016 @ 11:07 am|

When people consider investing in property, many limit their scope to single residential properties. However, considering just residential property investment are missing out on a potentially huge opportunity. The income and equity potential of investing in commercial real estate is much larger, despite the risks seeming greater than residential properties. Below, INCO Commercial reviews the different types of commercial properties and the benefits involved for investing in each type of property.

Commercial Real Estate Overview

Commercial real estate (CRE) is any land or properties intended to turn a profit either from capital gain or rental income. When brokers refer to ‘residential’ property, they’re usually referring to single-family dwellings, whereas as commercial properties in California include anything more than five dwellings (units).

Other commercial properties may include retail buildings, office spaces, warehouses, industrial buildings, apartment buildings, “mixed use” buildings, where the property might have a combination or mix of residential, commercial, and industrial. For example, there may be a retail store or restaurant on ground level, while offices or apartments are located on higher levels.

Benefits of Investing in Commercial Real Estate

Across the nation, Southern California is still considered the most strategic place to expand a commercial real estate portfolio. Even foreign investors have recognized the southland’s potential, as an influx of international companies and wealthy individuals from other countries have flooded the market in the past few years.

Though getting into commercial real estate as a novice may be intimidating at first, there are real benefits to investing in CRE properties whether you’re looking to expand your portfolio or are considering various investment options.

Higher Income Potential

Because of the property size and the number of tenants a commercial property can potentially hold, the annual return is much higher than other investments, such as stock dividends, which, on average, yield between a 2% to 3% annual return. The range is much higher for CRE, between 5% and 15%. Multi-family properties or apartment buildings tend to be toward the lower end, with suburban office spaces at the higher end.

Leveraging Increases Cash Flow – Higher Equity Potential

Much of the equity built in commercial real estate is increased through leveraging. Leveraging means using borrowed capital to make an investment, with the expectation that the profits will be greater than the payable interest. In this way, you can put down a small percentage of the purchase price on a particular property, finance the remainder, and go on to invest in more properties in the same way. Real estate leveraging allows you to enjoy a much higher return on investment than buying outright. Commercial real estate leases are also typically more favorable for banks and easier to approve because of the higher likelihood of a stable income flow, as long as they determine you’re not over-leveraging your assets.

More Tenants, Less Risk

In a multiple occupancy building, there is less risk of income loss when it comes to vacancies as other tenants are still contributing to covering your operating costs. This is opposed to vacancies on a single family residential, which equals 100% income loss. Also, since many commercial real estate leases are NNN, tenants are also responsible for the main expenses on the property, in addition to their base rents: Net taxes, Net building expenses, and Net Common Area Maintenance (CAM) fees.

Security Advantage

Unlike stocks, bonds, and other forms of investment, commercial real estate promises value both the land itself and the improvements on the property, such as structures, infrastructure, and landscaping. Additionally, the needs for CRE properties are fairly stable: housing (apartment complexes or mobile home parks), service industries (retail or office space), or storage and production (industrial warehouses). INCO Commercial can help you choose the best location and property within your desired area to maximize your advantage.

Excellent Appreciation Value

Whereas investments like stocks don’t allow for much more than buying and selling based on the market, commercial real estate owners are able to invest in improvements on their properties, as long as regulations are met and necessary local government approvals are secured. A commercial real estate property owner can modernize the property, raise rents, restyle the exterior or interior, or even apply for a zoning change. Inflation can also contribute to the value of existing properties; and while new properties will cost more to develop than older properties, existing locations still increase in value along with the newer local developments.

Need advice on commercial real estate investing? INCO Commercial provides high quality commercial real estate brokerage and advisory services to our clients, with expertise in multi-family housing, restaurant sales, mergers, and acquisitions. We are committed to improving the local community with the best agents and client-centered service we can provide.

Our affiliated companies, CORE Property Management and IMC Municipal Consulting are also ready to work hand-in-hand, depending on our clients’ needs. Core Property Management provides complete or partial assistance in effectively managing your properties to maximize your income potential. IMC Municipal Consulting provides advisory services for real estate and community development, and can help strategically navigate large-scale economic projects in compliance with local laws and environmental codes.

Explore our website, or visit our contact page to see which INCO Commercial office can best serve you.

INCO Commercial’s Award-Winning Dedication to the Long Beach Community

2018-12-19T12:43:40-08:00July 19, 2016 @ 1:29 pm|

Discover why INCO Commercial is one of the top commercial and industrial real estate companies in the Long Beach area. Our agents are highly committed to the Long Beach and surrounding areas, each having a longstanding local connection and thus a personal investment in this unique region. INCO Commercial realizes the growth and potential in the Long Beach area, and works closely with the city, developers, and community to ensure everyone’s goals are fulfilled.

Because of this incredible dedication and commitment to the community and it’s development, INCO Commercial was honored at the 125th Long Beach Area Chamber of Commerce Gala last month. INCO Commercial received several awards: a “Certificate of Recognition” from the United States House of Representatives, presented by Congressman Alan Lowenthal; the “Industry Award” from the 33rd Senate District of the State of California; “Certificate of Recognition” from the State of California Senate, presented by Senator Ricardo Lara of the 33rd District and Chair of Senate Appropriations Committee; and another “Certificate of Recognition” from the California Legislature Assembly presented by Mike Gipson, assembly member of the 64th District in Wilmington. A press release will be issued soon with more details and information on these prestigious awards.

Learn more about some of INCO Commercial’s amazing team members in this brief video featured at the gala.

Investing in Raw Land

2018-12-19T12:43:40-08:00July 19, 2016 @ 1:25 pm|

When you’re looking to diversify your investments, consider your options when it comes to raw land. Land is considered ‘raw’ or ‘unimproved’ if there are no man-made changes to the property. An investment on land that is raw is typically solid, especially near a developed area. Whether you are interested in developing, subdividing, or are a land speculator, opportunities will always arise for raw land. Here, we’ll help give you some insight on purchasing raw land. When you’re ready to make a move, INCO Commercial can work with you and help guide every step of the way.

Exploring Your Purpose

What are your subsequent plans for acquiring raw land? Will it sit and appreciate, or will you develop it in the near future? Your answers can determine how this process unfolds. In the eyes of the bank, purchasing raw or “unimproved” land is riskier than purchasing “improved” land. If you need a loan, you may encounter a hesitation on the bank’s part to front the money on raw land since it isn’t actively producing profits (as opposed to a building with businesses that potentially generates income). A larger down payment is not uncommon, as well as a high interest rate on a loan. The lender will likely also want to see a development plan and what your intentions are before approving a loan. However, don’t let these factors alone deter you; land is still considered a good investment because it’s a tangible asset, versus stocks or bonds, for example. It’s also a limited resource, and highly coveted as our populations and developments continue to increase.

It’s also important to consider the logistics of maintaining raw land. For instance you will still have to pay property tax, although on unimproved land, it is typically less than if it has development on it. Other maintenance costs can include upkeep as well as ensuring that there are no overtly dangerous liabilities on the property where people can potentially become injured or worse. But again, that should not be a deterrent and often can be mitigated with something as simple as posting “No Trespassing” signs or creating boundaries.

Surveying the Land

As clichéd as it is, location is always a big factor, whether you choose to develop the land or not. If the property is more remote, road and utility line accessibility should be assessed; even features such as the soil type and grade can be crucial, depending on what your intended use for the property is. Having the land surveyed can help answer all of those questions. It can also help find out if there are any ‘easements,’ meaning that a neighbor or other party is entitled to use part of your land for a specific purpose (i.e., passing through). Different kinds of surveys are available; subdivision survey if you plan on dividing and selling or leasing the land, or have a more comprehensive survey conducted, like the ALTA/ACSM land survey (American Land Title Association/American Congress on Surveying and Mapping). The ALTA Survey can reveal all of that information, including the easements or encroachments on the property.

Be sure to consider even uncommon situations, for example the need for a septic system if the property is too far from the main municipal sewage system. Situations like this could create other obstacles, in this example it would be determining if you have adequate space for a septic system while maintaining enough distance from the water source to prevent contamination. Navigating situations like this is where the value of a great team with experience starts to really pay off.

Remember that unless you have immediate need and/or plans, raw land is often a long term investment. This allows for savvy investors to be strategic with their land purchases. Land within a city or at a city’s edge will increase at a faster rate, but that doesn’t mean that raw land in other areas will not appreciate quickly as well. INCO Commercial can help look into the city or county’s long-term land use plans or scheduled additions, which can indicate any progress or development that may benefit you in the long-run.

Title Insurance & Due Diligence

Title insurance is not mandatory, but it can help ease the minds of lenders, and yourself. Unlike most insurance, which protects you in the event that something might happen, title insurance protects you from things which have already transpired, but aren’t necessarily apparent even to the trained eye. This can include forgeries or fraud on the part of previous owners, or forgotten responsibilities (or previously undisclosed inheritances, etc.), or other errors in previous transactions. Title insurance serves to help you with any legal fees or expenses if the ownership of the property is ever questioned.

Proper due diligence on your part can also save you unexpected costs and headache in the long run with a thorough research on the property and its history.  Here again is where a great team with the right experience can prove to be invaluable. The INCO Commercial team can help with your due diligence efforts to ensure maximum transparency and that you are always acting with the most accurate information possible. For example, the seller’s intentions could give insight on the true value of the property. If the current owner has only possessed the land for a short time or is selling far below market value, it raises some flags; they may know something about the land that they are not readily disclosing. With the right research and information INCO can help you assess all possible situations to help ensure that you are making a legitimate investment.

Our affiliated IMC Municipal Consulting can also work closely with you and provide assistance throughout economic development projects with as little or as much consulting as you need.

If you have any more questions about raw land investments, or any other ventures in commercial real estate, please feel free to explore our website www.incocommercial.com, or contact us at (562) 498-3395 for more information! We are happy to help answer any of your questions.

 

From LBBJ: Demand for Retail Space Remains Strong

2018-12-19T12:43:40-08:00May 10, 2016 @ 3:13 pm|

An article released by The Long Beach Business Journal discusses the strength in the current retail space market, despite closures from big-box retailers in the community. The article also features an interview with INCO Commercial’s own principal and board member, Douglas Shea.

Closures from retail giants Sports Authority and Sports Chalet have left some uncertain about the market for retail space. However, Shea reassures that the current low interest rates have been driving an upward momentum in commercial real estate that will likely continue throughout the year. The demand for ‘shop spaces’ typically ranging from 1,500-3,000 SF are doing especially well, as new entrepreneurs are taking advantage of those low interest rates.

Retail spaces larger than 10,000 SF are the ones facing more difficulty in filling vacancies. Brian Russell, Vice President of Coldwell Banker Commercial BLAIR WESTMAC predicts that with the closures of Sports Authority and Sports Chalet, other sports retailers will benefit and strengthen their footing in the market. Shea even suggests those retailers may expand to those vacant stores, noting that the demand for brick-and-mortar sports retail stores is still significant. For the time being, Russell proposes a furniture store would do well in the larger vacant retail spaces in Long Beach.

Both Shea and Russell agree if the low interest rates and current climate continues, the positive trends and momentum will prevail. Yet, the proposed 1% Long Beach sales tax increase on the June ballot may threaten the upward trends, as well as continued rental rate increases on retailers and restaurateurs.

Still, new developments and major retail projects provide encouragement as they get underway throughout Long Beach. Most notable is the planned 250,000 SF of retail space on the currently vacant lot next to Long Beach Airport slated for ‘airport-themed’ development. Burnham USA Equities, Inc., which purchased the land, is expecting to break ground next year. Additionally, a new 241-room hotel is also planned for the site by Nexus Development, with construction beginning as early as July of this year.

Overall, the Long Beach area promises a strong outlook for retail shops and commercial real estate investors, who can capitalize on the low interest rates and local market conditions.

Read the full-length article by clicking on the link below.

Despite More Big Box Store Closures, Demand For Retail Space Strong

The Benefits to Investing in a Multi-Family Commercial Property

2018-12-19T12:43:40-08:00May 9, 2016 @ 12:37 pm|

For those of you new to investing in commercial real estate, or just looking to expand your portfolio, a multi-family commercial property is a solid investment with a great potential in amassing capital.

INCO Commercial is one of the leading companies in commercial real estate serving the Long Beach, Irvine, and Riverside areas. We are committed to the best interests of our clients and will work closely together every step of the way. If you’re considering investing in a multi-family commercial property, here are some benefits to consider on this kind of investment. First, we’ll explain what qualifies as a commercial multi-family property.

What is a Commercial Multi-Family Property?

To qualify as a commercial real estate property, a multi-family residential must have 5+ dwellings (units). Multi-family buildings are different by location (urban or suburban) and size of construction. Garden apartments are multi-family apartment buildings with three floors or fewer; mid/high-rise are multi-family buildings with four floors or higher.

Benefits of a Multi-Family Property Investment

Greater Cash Flow
Cash flow on a multi-family residential unit is greater than a single-family for obvious reasons: there are more tenants paying rent. Bigger apartment buildings are less influenced by any single vacancy; the more units and thus, tenants you have, the less risk you carry. With a single-family residential, one vacancy means you’re losing out on 100% of rental income. In a multi-family property, the loss from one vacancy is only a percentage of the total income, and other tenants are still contributing to covering the operating costs.

More Expensive, but Easier to Finance
The total cost of purchasing commercial real estate, including multi-family properties is higher, but lenders sometimes favor financing these types of property. This is because multi-family properties generate a much stronger cash flow month to month, therefore banks are sometimes more likely to approve the loan than with a single-family residential as they might perceive the risk on those loans defaulting to be less.

Easier Management, Whether it’s You or a Hired Management Team
With all of the properties in one location, managing a multi-family commercial property can many times be easier than managing several single family units spread out. Not only does this include managing tenants, but overseeing maintenance, employees, etc.

Because of the increased cash flow, you may be able to hire a team to manage your property, which in a large-scale apartment complex might be worth it to you. The management team can supervise the property, manage the maintenance crew, take phone calls, and even handle audits, rent, and much more.

INCO Commercial’s affiliate, CORE Property Management specializes in managing commercial and industrial properties, whether you need a full team, or just some assistance in a few areas. With CORE Property Management, you can rest assured that everything will be handled within the local, state, and federal regulations and other best practices. For a complete list of services provided, find out more about CORE Property Management.

A dedicated management team can allow for less stress on your end, and more time to manage other investments or projects you may have on the table.

Excellent Appreciation
The appreciation of a multi-family commercial property can depend on several factors, but many of those factors can be within your control. Although the base cost is usually higher on this kind of property, you will usually see a greater benefit in appreciation than with a single-family residential. By maintaining the property in top condition and making some improvements over time, you can add value to the property to increase the return on your investment. This means more equity for you if you choose to sell it down the line. Our expert agents at INCO Commercial can work with you to evaluate how to maximize the value of your property, and even help determine when it would be appropriate to make improvements and adjust rents.

High Demand
In Southern California, the demand to rent is not going away any time soon. In fact, rents, home sales, and home prices are expected to rise throughout 2016 in Los Angeles County alone. People will always need a place to live, and with rising home prices, many people will continue to rent since they cannot afford to buy. With our local expertise, INCO Commercial agents can help project which properties would have the best potential and match your business interests.

Investing in commercial real estate has historically proven to be a sound strategy for increasing personal wealth. It is also a way to take an active role and have more control over your investments as opposed to the stock market or other types of investments. Working with INCO Commercial also offers peace of mind, knowing that our 40+ years of industry experience and intimate local knowledge of the commercial real estate market will be working on your side.

Learn more about our agents, or go to our contact page and contact the office which would best serve you. Discover our other services and affiliates associated with INCO Commercial, or explore the other types of properties our company specializes in. We look forward to working with you!

Important Factors in Considering Office Space Rentals

2018-12-19T12:43:40-08:00April 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!

Renovation vs. Relocation: Changing Your Office Space

2018-12-19T12:43:40-08:00April 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!

 

Press Release: INCO Commercial Commercial Launches New, Comprehensive Website

2018-12-19T12:43:41-08:00November 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

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

2018-12-19T12:43:41-08:00November 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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