Leasing. It's Complicated.
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Landlord and Tenant Representation is a core practice at RE/MAX Results Commercial Group for retail, office, and industrial property leasing. Unless a commercial broker is working everyday in the Twin Cities leasing market, it's hard to know what you just don't know.
While there are commercial real estate (CRE) industry standards & protocol for leasing within each product category (office vs. industrial vs. retail), every leasing assignment is unique. Every Landlord and Tenant are unique in their approach, objective, or financial position. Unrealistic expectations, negotiating styles, financial contributions, personal guarantees, timing, or site use, can all kill the deal. And, that's just the tip of the iceberg.
How about the types of leases? Net-lease, modified net, gross, modified gross, or ground lease. What’s it cost? Base rate + CAM + Operating Expense + Tax? What’s included in operating expenses in the modified gross lease? And how did you come up with that CAM (Common Area Maintenance) number? You get the point.
It's complicated. There can be very significant financial risk for both the Landlord and the Tenant in a lease transaction.
In lease negotiations, there are some customary, yet negotiable, expectations when it comes to Landlord or Tenant responsibilities, Tenant improvement allowances, rent escalations, HVAC, ADA compliance, or brokerage fees. Since there are no 'standard commercial leases' per se, every leasing contract is different and requires a real property attorney that understands commercial leasing to work through the final stages of the contracts.
When it comes to Tenant Representation, the most common lease term for brokers to represent a Tenant is a 5 year lease minimum. But, there are plenty of 3 year and 10 year lease deals done too. Options to renew, market lease rate resets, right of first refusal, parking rights, or lease with an option to purchase are a few of examples of additional elements that can enter into lease negotiations.
CRE Landlords are usually very picky about who they want as a Tenant. Most seasoned Landlords have learned the hard lessons over the years and understand a vacancy can be much better than over-investing in a Tenant whose business will not survive. Tenants should be equally discerning with who they want to work with in a Landlord, location, or the type of space required to be successful.
Contact RE/MAX Results Commercial Group for Landlord and Tenant leasing assignments and referrals. We can quickly determine if a leasing assignment is a good fit, advise on feasibility, and market trends.
Mark Hulsey
RE/MAX Results - Commercial Group
mark@resultscommercial.com
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Attention Referring Agents!
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DID YOU KNOW....
RE/MAX Results Commercial Group
PAID OVER $100,000
in 2017
to Agents for Referrals?
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SOLD
– NORTH LOOP OFFICE
400 North 1st Street, Minneapolis, MN
The Lindsay Building
$1,075,000
Sold by Hayden Hulsey, CCIM. Seller & Buyer Representation - Acquired by West Coast Investor. Hayden is currently leasing 3 available retail | office suites in the property.
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RE/MAX Results Commercial Group is proud to be named:
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Jake Gundershaug
Jake is currently a student at the University of St.Thomas Opus College of Business, pursuing a B.A. in Real Estate Studies. He joins us to serve in an administrative role as well as a broker-in-training.
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Jeff Waychoff
Jeff received undergraduate and graduate degrees in Business Finance from Regis University in Denver, CO. Jeff spent 4 years as a commercial property and asset manager. He also worked as a financial analyst for a local Twin Cities commercial real estate development group prior to venturing into commercial real estate brokerage. Jeff has held an active MN and CO real estate license since 2013.
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SOLD - Mixed-Use $1,450,000
3600 Lexington Ave N, Shoreview
Hayden Hulsey, CCIM represented the Buyer on the sale for $1,450,000. The Buyer purchased this as an investment and also intends to occupy part of the 2nd level office for their business.
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SOLD - NNN Retail
1407 Larpenteur Ave, Falcon Heights
We sold this Net-Lease investment property to a Twin Cities investor. Stable Income with future redevelopment possibilities;
2 lots on strong corner.
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SOLD - Office Building
962 University Ave, St. Paul
6,000 SF Office / Retail sold on University Avenue as revitalization continues in St. Paul. A two-property assemblage made this deal work.
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SOLD - Retail: $421,000
20751 Holyoke Ave, Lakeville
Mark Hulsey handled the sale of this retail building in Lakeville. Local investor to redeveloped this former
50 year drug store into the popular,
B-52's restaurant.
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SOLD - Retail: $960,000
4560 Central Ave NE, Hilltop
7 PID assemblage, 2.4 acres, redevelopment sale to Public Storage for $ 960,000. Existing site included retail, industrial, & outside storage.
Mark Hulsey, Listing Broker.
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We recently closed a few Net-Lease investment (aka Triple-Net or NNN) deals for our professional commercial investment clients including MGM Liquor Store, Perkins, Tractor Supply and Walgreen's.
Net-lease asset investments can be one of the best hands-free, collateralized, investment vehicles available. In essence, the Tenant pays for all property expenses including taxes, insurance and operating costs. They are often fully responsible for required property improvements including new roofs or HVAC systems.
Capitalization Rate (Cap Rate) is the most common at-a-glance, return-on-investment measurement brokers and investors use to quantify the risk. Simply put, if a NNN asset is located in an excellent location and secured by a strong corporate lease guarantee for a relatively long term (10+ years), the investor is willing to accept a lower cap rate. If the risk is higher from a Tenant, term or property/location point-of-view, then the cap rate return should be commensurate.
Brokering NNN assets is not for the faint of heart. It's a specialized CRE world in-and-of-itself and you need to know how to play the game regardless of what side of the fence you're on. For the accredited investor, net-lease investments can be a perfect solution for diversifying their investment holdings.
Mark Hulsey
RE/MAX Results - Commercial Group
mark@resultscommercial.com
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Multi Family Land for Development
West Broadway Ave, Brooklyn Park
BANK OWNED: 14.86 acres listed at
$2,800,000
. Multifamily Land for Development on Broadway Avenue. Lender is ready to review all offers. City will consider increasing density.
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Auto Sales Building
118 County Road C West, Little Canada
RARE: Auto sales building and land available in Little Canada that could include Vehicle Dealer’s License. This B-4 zoned, .68 acre site holds great potential including outside storage. Listed at
$875,000
.
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NE Minneapolis Retail + Apartments
1627 Washington St. NE, Minneapolis
Multi-tenant commercial investment for sale in highly desirable Northeast Minneapolis. Mixed-use with retail & office down and 6 apartments up. Listed at
$1,550,000
.
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Anoka Retail/Office Building
700 E. Main Street, Anoka
Amazing 2004 built, retail/office building on Main Street in Anoka listing for sale at
$1,250,000
. Current tenant will vacate with sale. Check out Matterport & video on the website.
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Land Ready for Development
80, 2575 & 2590 Cates Ranch Dr, Hamel
Up to ~73.5 acres in Hamel/Medina Township. Multiple parcels for residential & commercial development. Utility infrastructure butt to site. Directly off Highway 55. Listed between
$1,330,000 - $5,255,000
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Walgreens - White Bear Lake
915 Wildwood Rd, White Bear Lake
Net-lease (NNN) investment with 6.15% cap rate listed at
$9,000,000
. The property has strong sales and is strategically located on Wildwood Road which is a major retail corridor. Contact Mark Hulsey for details.
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Up And Coming University Ave
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An entire redevelopment phase begins with the construction of the new Allianz Soccer Stadium. A complete update to University Avenue W will include the stadium surrounded by new apartments and shops. The master plan entails the beautiful $250 million dollar stadium and Allianz Village. The Village will consist of 1 million SF of new office space, 420,000 SF of retail and entertainment space along with 620 residential units and 400 hotel rooms. With donations reaching $18 million to clean up the site, surrounding business are updating their look as well. With current properties located up and down University Ave W, RE/MAX Results - Commercial Group is here to help.
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Check out our Featured Properties on University Avenue
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1475 University Ave W
St. Paul, MN 55104
RETAIL FOR LEASE
$14.00 SF Net
1,433 SF prime University Avenue retail located directly on the Light Rail-Green Line, across from Walmart and with views of the new Allianz-Minnesota United soccer stadium. The current build out has one large 38’x30’ front room, a smaller back room 30’x12’ and an 11’x9’ office.
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1573 University Ave W
St. Paul, MN 55104
UNDER CONTRACT
5,512 SF, three-story building located directly across from the new Allianz-Minnesota United soccer stadium, on the corner on Snelling and University Avenues. Perfect spot for a personal office building. High traffic area, 50 feet from the Light Rail-Green Line Snelling Station.
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1553 University Ave W
St. Paul, MN 55104
UNDER CONTRACT
LIST PRICE: $1,485,000
10,300 SF prime stand-alone retail located on University and Snelling Avenues. Adjacent to Light Rail-Green Line and across from the new Allianz- Minnesota United soccer stadium. 2nd level is framed in for about two apartment units or could become apart of main level operation. Includes parking in the rear.
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Leased! - St. Paul Office
1061 Grand Ave, St. Paul
We are pleased to filled a prime St. Paul Grand Avenue office once again. Our group has successfully leased multiple units in this building for the Landlord.
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For Lease -
Retail Storefront
14233 O'Connell Court #500, Savage
• 1,749 SF Retail Available
• Space Includes Breakroom,
2 Restrooms & 2 Private Offices
• Property Surrounded by Diverse Mix of National & Regional Retailers
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Leased! -
S. Mpls Restaurant
735 E. 48th St, Minneapolis
Hayden Hulsey, CCIM, represented the Landlord in quickly leasing this retail space. R.A. MacSammy's secured a lease for this Minneapolis storefront.
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For Lease - North Loop Office
400 N 1st St, Minneapolis
• 3 suites available; 997 SF-6,638 SF
• Office | Retail Use
• Beautiful Exposed Brick & Timber
• Parking Available
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RE/MAX Results - Commercial Group
A Full-Service Commercial & Investment Real Estate Group
Acquisition | Disposition | Leasing
RE/MAX Results - Commercial Group is a Division of RE/MAX Results.
Each Office Independently Owned and Operated.
STAY CONNECTED
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