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Steve Hyatt answers: What is a finish-out allowance?

February 21st, 2017

A finish out allowance is also known as a tenant improvement allowance. In most leases it’s borne by the landlord and there’s very important things to factor in, whether it’s first generation shell space or whether it’s previously occupied and second generation space. Your finish out allowance is going to include doors, walls, lighting fixtures, HVAC distribution, sprinklers, carpet, paint, all of the above. It either comes in the form of a work letter or comes in the form of a dollar amount. That dollar amount is a negotiated price between the landlord and tenant.

As a tenant you want to make sure you have the largest tenant improvement allowance that is all-encompassing, so you can get the space built out at your discretion and what you want. That needs to be agreed upon up front. If you go over your tenant improvement allowance, that either comes out of your pocket as a cash payment before you start the lease, or it gets incorporated into your lease rate. The ideal situation is to up front clarify how the landlord is delivering the space and the amount of the tenant improvement’s allowance, and get a very strong comfort level that that tenant improvement allowance will cover the cost of the build out.

Steve Hyatt answers: What is rentable square feet?

February 16th, 2017

The rentable square feet is the actual space that the tenant pays rent on and what it is it’s made up of the actual usable space, which is the envelope of space that the tenant occupies, plus their pro-rata share of the common areas, the bathrooms, the corridors, the common lobby down the stairs. The way the rentable square footage is calculated is you take the usable space and you multiply it by a percentage, which is known as either add-on factor or load factor and a lot of times, depending on the building, it could be anywhere from 15 to 30%. In most buildings, tenants like to have it more efficient, which would be a lower percentage. They don’t want large lobbies that they don’t have really any use for, but they’re paying for. The more efficient a building is, obviously, the lower the percentage and the more bang for the buck the tenant gets.

Steve Hyatt answers: I’ve heard of Triple Net or NNN Leased Properties for sale. What type of investment is that?

February 9th, 2017

It’s typically a single tenant triple net lease, which means there’s very limited responsibilities of the landlord. If anything, maybe the landlord is going to take care of the roof and the structure, and the tenant pays everything else. Essentially, it’s like handing over the keys to the property to the particular tenant. Typically, the leases are 10 to 20 years with options. The tenants that go in are usually banks, fast food restaurants, retail chains, sometimes land leases. It’s a very conservative type of investment, very hands off for the owner to have as an investment.

Berger Commercial Realty Secures 53,000 Square Feet In Broward Lease Transactions

February 9th, 2017



Berger Commercial Realty/CORFAC International brokers recently secured 52,696 square-feet in lease transactions on behalf of landlords across Broward County.


Enterprise Commerce Center

Senior Vice President Keith Graves and Sales Associate John Forman represented Mancini & Sons Florida #2, LLC in renewing a lease for 11,236 square-feet of industrial space to Roto-Rooter Services Company at Enterprise Commerce Center, located at 1901 Green Road in Deerfield Beach. The 76,381-square-foot Enterprise Commerce Center is a class-B warehouse property featuring ample parking, 24 feet of clear ceiling height, dock-level shipping doors and glass front facades.


Palm Crossing South

Senior Vice President Keith Graves represented SPG Palm Crossing, LLC in leasing 6,365 square-feet of flex space to Davinci Inflight Training Institute, Inc. and 5,000 square-feet of flex space to Crestwood Services, Inc. at Palm Crossing South. Located at 3350 N.W. 53rd Street in Fort Lauderdale, Palm Crossing South is a 193,107-square-foot industrial park situated on 14.63 acres just north of Commercial Boulevard. The park features lush landscaping, flexible office and warehouse floorplans, grade-level overhead doors, ample parking and immediate access to I-95 and Florida’s Turnpike.


Ryan & Ryan Office Building

Senior Vice President Judy Dolan represented Ryan Ventures, Ltd. in leasing 4,366 square-feet of office space to US Legal Support, Inc. at the Ryan & Ryan Office Building, located at 700 E. Dania Beach Blvd. in Dania Beach. The 14,457-square-foot office building features ample parking, exterior signage opportunities, and close proximity to Fort Lauderdale/Hollywood International Airport and Port Everglades.


Cypress Creek Business Park

At Cypress Creek Business Park, Senior Vice President Joseph Byrnes and Senior Sales Associate Jonathan Thiel represented Rising Tide Development, LLC in renewing leases for 3,900 square-feet of flex space to Vector Security, Inc. and 1,865 square-feet of office space to Shingle & Gibb Company. Located at 6555 Powerline Road in Fort Lauderdale, the 54,600-square-foot Cypress Creek Business Park consists of two buildings and features ample parking, round-the-clock-access, frontage on Powerline Road and convenient access to I-95 and Florida’s Turnpike.


Powerline Business Center

At Powerline Business Center, located at 5601 Powerline Road in Fort Lauderdale, Senior Vice President Joseph Byrnes and Senior Sales Associate Jonathan Thiel represented Rising Tide Development, LLC in:

-the lease expansion of 2,680 square-feet of office space to Chrome Med Corp.

-and the lease renewal of 1,421 square-feet of office space to Saad Elia El Hage Consulting Engineers, Inc.

Powerline Business Center consists of four single-story office and warehouse buildings totaling 82,330 square-feet. Located minutes from I-95 and Florida’s Turnpike, Powerline Business Center features frontage on Powerline Road, grade-level overhead doors, round-the-clock access, and close proximity to local restaurants, shopping, banks and public transportation.


Executive Airport Business Center

Senior Vice Presidents Joseph Byrnes and Keith Graves represented KAS Airport, LLC in leasing 2,490 square-feet of office space to Alloy Behavior Health Solutions, Inc. at Executive Airport Business Center. Located at 1835 S. Perimeter Road in Fort Lauderdale, the 73,150-square-foot business park consists of three buildings and features frontage on Commercial Boulevard and convenient access to I-95 and Florida’s Turnpike. Executive Airport Business Center is adjacent to Fort Lauderdale Executive Airport.


Cypress Corners

Senior Vice President Keith Graves and Senior Sales Associate Jonathan Thiel represented Cypress Creek Executive Center, LLC in renewing a lease for 2,398 square-feet of space to IRA Scot Silverstein, PLCC at Cypress Corners, located at 2900 W. Cypress Creek Road in Fort Lauderdale. The 43,700-square-foot multi-tenant office property is located within minutes of Fort Lauderdale Executive Airport and offers ample parking, round-the-clock access, and convenient access to I-95 and Florida’s Turnpike.


Prospect Parks I & II

At Prospect Park I, located at 5231 to 5237 N.W. 33rd Ave. in Fort Lauderdale, Senior Vice Presidents Joseph Byrnes and Keith Graves and Senior Sales Associate Jonathan Thiel represented AKF3 SF Light Industrial, LLC in leasing 2,115 square-feet of flex space to Royal Prestige Veneusa Network, Inc. and 1,387 square-feet of flex space to Aerobiology Laboratory Associates, Inc. Prospect Park I is a 70,874-square-foot business park located between I-95 and Florida’s Turnpike at Commercial Boulevard. The property offers ample parking, round-the-clock access and flexible floorplans.

The brokers also represented AKF3 SF Light Industrial, LLC in the new lease of 2,759 square-feet of flex space to NextGen Parking and the lease expansion of 1,695 square-feet of flex space to Residential Warranty Services, Inc. at Prospect Park II, located at 3301 N.W. 55th Street in Fort Lauderdale. Prospect Park II is an 81,925-square-foot business park adjacent to Fort Lauderdale Executive Airport between I-95 and Florida’s Turnpike. Prospect Park II offers flexible floorplans, grade-level overhead doors, round-the-clock access and highly visible exterior signage opportunities.


Harbor Shops

Senior Vice President Judy Dolan represented The Harbor Shops, LLC in leasing 1,858 square-feet of office space to AIComp Consulting, Inc. in suite 204 at Harbor Shops, located at 1845 Cordova Road in Fort Lauderdale. The 250,000-square-foot, class-A regional shopping center is located along the 17th Street corridor. Its tenants include national chains such as Publix, Total Wine, TJ Maxx, LA Fitness, Chase Bank, Massage Envy, Ross and more.


888 Building

Sales Associate Stephanie Bernota represented The Las Olas Company in leasing 1,161 square-feet of office space to ARRI, Inc. at the 888 Building, located at 888 E. Las Olas Blvd. in Fort Lauderdale. The 888 Building is a 54,873-square-foot, seven-story boutique office building located at the intersection of Las Olas Boulevard and 9th Avenue in the heart of downtown Fort Lauderdale. The class-A office building is within walking distance of all Las Olas Boulevard dining, shopping and amenities.

Judy Dolan answers: What’s the difference between a leasing agent and a tenant representative?

February 2nd, 2017


The difference between a leasing agent and a tenant representative are substantial. A leasing agent primarily has the landlord’s best interest in mind when completing a transaction. The leasing agent should be using their market knowledge in order to achieve the best deal for the landlord. A tenant rep has the tenant’s best interests in mind and uses their market knowledge and their knowledge of recent deals in order to get the best deal done for the tenant.

Berger Commercial Realty Joins CORFAC International

February 1st, 2017




Berger Commercial Realty/CORFAC International, a regional, full service commercial real estate firm based in South Florida, recently announced its membership in CORFAC International, a global network of independently-owned entrepreneurial commercial real estate brokerage firms that partner to deliver quality and experienced service locally, nationally and internationally.


“Our extensive knowledge and experience in the South Florida market has allowed us to serve our clients well,” said Berger Commercial Realty/CORFAC International President Lloyd Berger. “With CORFAC, we have the opportunity to broaden our horizons and further expand our client base.”
Established in 1989, CORFAC currently has affiliates in 48 U.S. markets, four Canadian markets and 26 international markets including Colombia, France, Germany, Ireland, Israel, Italy, Mexico, Poland, Romania, Russia, South Africa, South Korea, Switzerland and the United Kingdom.


“Membership in CORFAC International is by invitation only, so when we look for an affiliate for a particular market, we select firms that are recognized in the area for their expertise and best practices,” said CORFAC International Executive Director Jonathan Salk. “Berger Commercial Realty was an ideal candidate due to its client-centric approach and customized real estate solutions, which have resulted in lasting client-broker relationships and repeat business. This methodology sets a precedent from which other CORFAC members can learn.”

Joseph Byrnes answers: A lease rate is stated as $10.00 PSF. What does that mean?

January 31st, 2017

$10 per square foot would be the annual rental rate for the space in question. What you would do you would take the size of the space, multiply it by the $10 per square foot, divide that by 12 and you’ll have your monthly rent.

Demolition Begins: The 550 Building To Be FLL’s SOLO District’s Newest Office Building

January 30th, 2017

Fort Lauderdale’s SOLO District (South of Las Olas) is undergoing a transformation to keep up with the fast growing pace of new residents and businesses. Demolition of Fort Lauderdale’s Justice Building will begin February 2017 to make way for the new 550 Building.

The 30,734 square feet Justice Building was built in 1982 and has been home to some of Broward County’s top law firms for the past 35 years. The building sits on the NE corner of Andrews Ave and SE 6th St., adjacent to the new Broward County Courthouse, in the highest pedestrian traffic areas in Broward County.


the 550 building

The 550 Building will be the Fort Lauderdale’s SOLO District’s newest office building since 1989. The new 86,367 square feet, 7-story, Class A building will feature 6 floors of office space and 7,500 square feet of ground floor restaurant and retail space. The property will also feature a new 663-space attached parking garage with The SOLO Shoppes on the ground floor, which will be comprised of an additional 14,000 square feet of restaurant/retail opportunity.

Pre-leasing has already begun for all components and occupancy is scheduled for the Spring of 2018.

For more information on The 550 Building, contact Berger Commercial Realty Corp. at 954.358.0900.

Property Supply Hasn’t Kept Pace With Popularity of Real-Estate Funds

January 18th, 2017
Europe’s largest property markets—the U.K., Germany and France—have seen the steepest declines in commercialproperty investment. Above, pedestrians leaving a shopping center last summer use an escalator in front of a building under development in London. PHOTO: DANIEL LEAL-OLIVAS/AFP/GETTY IMAGES
Europe’s largest property markets—the U.K., Germany and France—have seen the steepest declines in commercialproperty
investment. Above, pedestrians leaving a shopping center last summer use an escalator in front of a building under




Jan. 17, 2017 7:00 a.m. ET

By ART PATNAUDE of the Wall Street Journal

Investors are piling money into real-estate funds—but fund managers are finding it a challenge to spend it.
Global fund managers had a record $237 billion available to invest in commercial property at the end of last year, according to data firm Preqin, up from $229 billion at the end of 2015 and $136 billion at the end of 2012.
Real-estate funds are one way investors can bet on the property market without having to buy a whole building. When an investor commits capital to a fund, whatever amount remains unspent is known as dry powder.
The record level of dry powder comes as investors increasingly have turned to commercial real estate in a hunt for returns. Ultralow interest rates at global central banks have made returns on offices and shopping malls look attractive compared with other asset classes such as bonds.
Global fund managers have raised $446 billion for commercial property in the last four years, on par with the total raised between 2005 and 2008 in the run-up to the global financial crisis, Preqin said.
This level of fundraising “reflects the sustained institutional appetite for real estate,” said Andrew Moylan, head of real estate products at Preqin.
But the amount of property for sale hasn’t kept pace with the rising level of demand, a big reason for the for the accumulation of dry powder, analysts said.
With competition for deals fierce, “it has been much more challenging to invest,” said Don Rowlands, head of real estate in the U.S., Europe, the Middle East and Africa for the London-based law firm Herbert Smith Freehills.
One reason for the lack of property to buy: Landlords aren’t willing to sell. Their low debt levels and readily available bank financing have made it easy to hold on to properties longer in hopes of reaping bigger paydays later, analysts said.
After Britain voted to leave the European Union, international investors circled London waiting for bargains. But even there, only a handful of discounted deals emerged.
“There are very few forced sellers,” said Guy Grainger, chief executive of the Europe, Middle East and Africa region at Chicago-based property broker JLL.
Commercial-property-investment volumes boomed in recent years as investors hunted for returns greater than the rock-bottom yields offered by government bonds. But last year, the €234.5 billion ($248.6 billion) of deals in Europe was down about 27% from 2015, according to data from deal tracker Real Capital Analytics.
Europe’s largest property markets—the U.K., Germany and France—saw the steepest declines. In the U.K. last year, deal volumes dropped 48% from 2015, Real Capital said. Caution over politics, including the U.S. election, Brexit and a spate of European elections set for this year, has been part of the drop off in deals, analysts said. But a major reason, according to analysts, is the lack of assets to buy.
Another factor in landlords’ reluctance to sell: potential returns down the road. Strong levels of demand now suggest that if they wait, the value of their property could rise even more.
“The idea is that it makes financial sense to just hold on a bit longer,” Mr. Grainger said. The large amount of capital on hand with which to invest in commercial property has been a big factor in driving commercial-property values higher. Global cities, such as New York, London and Paris, have been a focal point for return-hungry investors.
In London, for instance, the capitalization rate—a measure of property yield—for offices fell to 4.6% in the fourth quarter of 2016 from 7.3% in late 2009, according to Real Capital.
Some property chiefs and analysts have been warning that real-estate values in some markets, including major global cities, look overheated.
“People are investing in real estate for the yield and return,” JLL’s Mr. Grainger said. “There is a danger they aren’t necessarily always looking at the fundamentals.”

Steve Hyatt answers: Who pays for changes needed to the layout, new walls, special telephone lines, and electrical work?

January 17th, 2017

In a lease situation, it is typically the landlord who pays that and that is agreed upon in the lease upfront. What you try to do is get an understanding in writing, a schedule on the back of a lease that says what following tenant improvements will be performed by landlord at their sole cost. Usually those renovation costs are born by the landlord and are incorporated into the eventual lease and lease rate.