Tag Archives: Boston Commercial Properties

Selecting a Full Service Commercial Real Estate Brokerage Firm

23 May

The most effective commercial real estate brokerage firm provides a full spectrum of services to its clients. Companies that require assistance with leasing or purchasing of properties and relocation can benefit from working with a firm that will assist with its search for property, i.e. tenant representation, and provide guidance throughout the relocation process.

A fully qualified tenant representative focuses on the client’s best interest, has thorough knowledge of the relevant marketplace, and deep experience in the industry. With the client’s best interests in mind, the tenant representative will provide the client with recommendations to procure the best solution to solve the client’s real estate objectives. An effective tenant representative will negotiate on the client’s behalf to secure the most favorable deal terms as well as augment the client’s legal team with review of lease and purchase and sale documents to avoid pitfalls in such contracts.

A full service tenant representatives job is not done when a lease is signed or a sale is closed. The client has the sometimes daunting task of relocating its business. This can be a stressful, time consuming and overwhelming task. A skillful tenant representative has the capabilities necessary to provide assistance to the client throughout the moving process. Such capabilities include the following:

  • Relocation scheduling and budgeting.
  • Facility planning services and financing of tenant improvements.
  • Obtaining the most professional vendors at the best pricing.
  • Provide guidance with purchasing of furniture, phones & IT.
  • Provide assistance with installation of Fixtures, Furniture & Equipment.
  • Guidance with miscellaneous items such as data storage management and new hires.
Real estate costs are typically the second highest cost on the expense side of a company’s P&L.  Identifying and finding the best solution for our client’s real estate requirements is critical to the success and profitability of the company. Boston Commercial Properties understands this and takes its client’s needs seriously.​ Please contact me to further discuss your real estate needs.
Warren Brown, President, Boston Commercial Properties, Inc.


All information provided is from sources deemed to be reliable, however no warranty or representation is made as to the accuracy thereof.

Financing Owner Occupied Commercial Real Estate

10 Aug

The current economic climate has enabled strong demand for business owners to seek commercial properties to acquire to accommodate their real estate requirements.

Interest rates continue at historic lows, banks have cleaned up their balance sheets since the last recession and there is a lot of capital available.  While finding the right property for our clients is obviously the most important step in the process, after a property is identified, there remains the process of securing financing for the purchase of the property.

There are many different types of commercial loan products to choose from and the current lending environment is competitive. Interest rates can be pegged to different types of benchmarks other than 10 year treasury bills, as is the case with residential loans such as Libor, Prime and other rates. Furthermore, the length of the term of the loan can vary. Typically this is 5, 7 or 10 years with a balloon or refinancing mechanism. In these types of loans the amortization schedule is not coterminous to the length of the loan. The amortization schedule of a commercial loan can also vary, but is typically 20 or 25 years. The various parameters of a loan are affected by many factors that are tied to the risk assessment of the loan. The credit of the buyer, amount of down-payment, the location and characteristics of the property and the risk tolerance of the lender are some of these factors. Some lenders can be more aggressive than others with loan packages offered to the buyer. For this reason, a buyer should shop the loan with a few different banks to get the best loan terms.

A buyer may also want to consider an SBA 504 loan as a financing option. This is a federal government sponsored loan package that many of my clients have taken advantage of and geared toward owner occupied commercial real estate. The appeal of this type of loan is basically two-fold: first, a buyer can obtain a 504 loan with just 10% down payment as opposed to a typical down payment of 25%. Second, the SBA finances 40% of the acquisition cost at a fixed interest rate, and over the full amortization schedule of typically 25 years. This can save a buyer a great deal of money. The lender also finds this type of loan attractive as it minimizes their risk to 50% of the loan amount. Most banks offer 504 loan packages and team up with an SBA conduit to process the loan.

Once selecting a lender, it is important that the buyer be a part of the bank’s loan approval process to make sure the loan navigates through the due diligence process in accordance with the terms and timelines set forth in the Purchase and Sale Agreement. Several of my clients have experienced instances whereby the  lender processed the loan under their own timeline, missed critical dates and put the buyer in a position of jeopardizing its position in a deal and even forfeiting its deposit. Please note that a bank will require a satisfactory appraisal and environmental report as part of the loan approval process. The cost for these reports is the buyer’s responsibility. The buyer should consult with its attorney and their real estate broker to assist them with the loan process. A professional and experienced commercial real estate broker can be a valuable resource to a buyer throughout the financing process.

Please contact me for further advice on these complex lease issues.

Warren Brown, President, Boston Commercial Properties

All information provided is from sources deemed to be reliable, however no warranty or representation is made as to the accuracy thereof.