Frequently Asked Questions
Q. Why should I work with a Commercial/Industrial Broker and Agent?
A. Real Estate Professionals in the Commercial/Industrial Field don’t sell houses; we work solely in the business field. We’ll guide you through Phase I evaluations, discuss your power needs, load limits for floors, Tenant or Buyer build out plans, the impact of brownfield properties and whether you need a vanilla box for your retail shop, or a cottage. As Commercial/Industrial Agents, we work in the spaces that house your business.
Q. Isn’t Realtor, just another word for Real Estate Agent?
A. Absolutely not. Realtor is the official designation for a national organization of Real Estate Agents who have gone beyond the basic training required by the state. Realtors take additional classes in ethics and training to maintain their designation. Realtors belong to Boards of Realtors, which are the local governing body for the National Organization. Realtors cooperate in transactions with other Realtors twice as often as independent agents cooperate with each other. And, the Realtors’ Code of Ethics holds us to a higher standard of practice than Non-Realtor agents.
Q. What does the S.I.O.R. designation connote?
A. An S.I.O.R. Designee (Member of the Society of Industrial & Office Realtors) has received this designation only after five or more years of High Volume Sales/Leasing Activity; completion of a demanding educational Course Curriculum; a two step formal evaluation of each applicant’s Ethics/Standards of practice; an on-site inspection of the applicant’s offices/files and more. Almost without fail, an S.I.O.R. designee is part of the top 5% in the Real Estate brokerage business.
Q. What Does Net, Net, Net Mean?
A. Basically, Net, Net, Net means that, in addition to paying a Base Rent or Square Foot Cost, you will be responsible for all other expenses relating to the demised premises. These Expenses cover Real Estate Taxes, Insurance, Landscaping, Snow Plowing, Trash Removal, all utilities, building and systems maintenance and more.
Q. What are the Costs of the Nets in a Lease?
A. These costs vary from Building to Building and from town to town, but for the most part, Industrial buildings will cost between $1.50 to $3.00 per square foot and office buildings will run from $5.50 to $7.00 per square foot.
Q. What are C.A.M. charges?
A. C.A.M. (Common Area Maintenance) charges are for costs related to the expenses for the Common Area such as Exterior and Lobby Lighting, Janitorial in common areas, Landscaping, Snowplowing, Elevators and more. These costs will be addressed in the formal lease as to how they are to be paid, i.e.: monthly, yearly, etc.
Q. What Down Payment do banks require for a Commercial Loan?
A. Bank Requirements depend on many things, your financial strength, credit worthiness, and your relation with your banker. The amount a bank looks for as a down payment will vary from bank to bank but generally most banks will require a 20% to 25% down payment.
Q. Once I identify the Space/Building I want to Lease or Buy, How do I proceed?
A. After you decide which facility best suits your business, you should submit a Proposal to Lease, Offer to Buy or Letter of Intent to the building’s owner. The Geenty Group Sales Person, with whom you are working, will help you draft any of these three documents and recommend that your attorney review them. Your attorney should promptly review all correspondence of this type, prior to submission to the owner, or the document should contain a contingency for legal review by Tenant/Buyer’s Counsel.
Q. Is The Geenty Group’s Commission Rate, which was quoted to me negotiable?
A. Normally, The Geenty Group’s quoted fee structure is not negotiable. The rates we ask are what we need in order to adequately compensate Co-Brokering Agents, to Pay Referral Fees, and to compensate our own agents. If we offer CO-Brokering Agents a Lower Commission than they can get on other offerings, our building owners are disadvantaged.
Q. Brokers everywhere offer Discount Commissions, why should I pay a full commission?
A. Service. The Geenty Group is a Full Service provider of Real Estate Services. As such, we Sell and Lease the sites that we introduce to the market. The best way to do that is to offer agents who represent Tenants or Buyers a full and competitive commission. Our commission structure brings us clients through other brokers; we don’t cut your client pool because we’ve cut our commission. Nearly 70% of our transactions are completed with our colleagues at other firms. And, when we find a new site for your business, we don’t pat you on the head and say goodbye when the contract is signed. We’ll help you find lawyers, contractors, environmental firms office furniture suppliers, wiring specialists and temporary employment services, if need be, everything to keep your business running smoothly during a move. More about Our Services can be found on the home page.
Q. What is a 1031 Exchange?
A. Also known as a tax deferred exchange, a 1031 allows certain capital gains to be reinvested within a specific time period so that the gains taxes are deferred. Recommendations and guidance about 1031 exchanges are best provided by a competent accountant who works in this field regularly.
Q. What is a Sale/Leaseback?
A. A Sale/Leaseback is one of the easiest ways to free up capital without negatively impacting your balance sheet. As a business and building owner, one can sell the building to an investor and maintain the business in the building on a lease basis. This arrangement works well for both parties, as an investor receives a monthly rental, the seller of the building can reinvest the capital in the business and the rent is shown on a business expense to offset the balance sheet. Many companies, who enter Sale/Leaseback agreements, even buy back the building years later.
Q. What is a Phase I (Environmental) Survey, or II or III for that matter?
A. Environmental surveys are typically required by conventional lenders when the purchase of a piece of Commercial or Industrial Real Estate is being financed. These reports are needed to comply with the Connecticut Property Transfer Act, relating to Commercial/Industrial properties. Environmental Engineering firms who conduct these surveys, can be found in every county in Connecticut, however, we often recommend firms that we’ve found to be helpful and ethical with their past work.
Briefly, a Phase I survey is the starting point for research into a property’s Previous Uses and Environmental history. It begins with a physical inspection, walking the property to look for signs of contamination, such as surface stains and the like. Research continues with the search of all DEP records relating to the property and the history of all previous owners and uses, as well as a report on existing land conditions.
The Phase II Assessment continues where the Phase I left off. Should any red flags be raised during the Phase I, testing is recommended, which could include surface and subsurface soil samples, water samples and more. Drill rigs and backhoes are used in this work. Reports will include recommendations for clean up and environmental compliance complete the Phase II.
The Phase III is remediation, or clean up and can consist of anything from removing tons of soil and having it carted to an incineration site to continuous monitoring of contaminants in wells on the property.
Q. Do you have a Newsletter?
A. Our Commercial/Industrial Newsletter can be found in the pressroom.