Industry Advice and Educational Tools | Stance Commercial Real Estate

Buying vs Leasing Commercial Real Estate

In Riverside, a city known for its substantial population and sprawling size, coupled with a small-town charm, local businesses are a cornerstone of the community. For these businesses, the decision between leasing or owning commercial property is pivotal and hinges on a multitude of factors, including financial practicality and the anticipated trajectory of the business.

Stance CRE is dedicated to equipping our clients with comprehensive knowledge to navigate commercial real estate decisions. Whether you're seeking office, retail, or warehouse space, understanding the advantages and drawbacks of leasing versus owning is crucial to informed decision-making.

Understanding the Lease and Purchase Options

At the heart of this decision is the difference between leasing and purchasing commercial real estate. A commercial lease is a contractual agreement that allows a business to occupy a space owned by a landlord. It is similar in nature to a residential lease, wherein the business owner pays rent to utilize the property for their operations.

Purchasing, on the other hand, places the property directly in the hands of the business owner, freeing them from landlord constraints and allowing for significant customization of the space to suit business needs.

Advantages of Leasing Commercial Real Estate

Leasing is often the more accessible option for many businesses due to its lower initial costs. A traditional property purchase typically requires a substantial down payment, whereas leasing demands far less upfront, preserving capital for other business investments. This cost-efficiency extends to potential tax benefits, as lease-related expenses are generally tax-deductible.

The lease term's flexibility is also appealing, especially for burgeoning businesses that may need to pivot quickly due to market changes or growth. Plus, the landlord's responsibility for maintenance and repairs means business owners can concentrate on running their operations without the added concern of property management.

Challenges When Leasing

The primary risks in leasing arise from potential rent hikes upon lease renewal and the absence of property control. Tenants may find themselves at the mercy of the landlord's terms, which can restrict the degree to which they can customize their space. Additionally, any improvements made by tenants may ultimately enhance the landlord's property value, not theirs.

Perks of Purchasing Commercial Real Estate

Ownership has its distinct set of benefits. It provides a stable location, especially important for businesses reliant on specialized equipment or those requiring extensive customization. Equity build-up is another significant advantage, as property owners benefit financially from their mortgage payments and any enhancements made to the property.

Owning a property also leads to a predictable overhead with potential for fixed costs, unlike the variable nature of lease expenses. Moreover, owners enjoy tax deductions not just on mortgage interest but also on depreciation, and have the added potential of generating rental income from unused space.

The Downside of Ownership

However, the path to ownership is not without its obstacles. The upfront costs are considerably higher, and the responsibility for maintenance, taxes, and repairs falls squarely on the property owner's shoulders. There's also the risk of reduced flexibility, as selling or leasing outgrown space can be a more complex process than simply relocating at the end of a lease term.

Riverside's Commercial Real Estate Outlook

Riverside's commercial real estate market is vibrant and growing, with a strong industrial sector driven by its proximity to major ports and a thriving e-commerce landscape. The forecast suggests continued growth, with office rents expected to decline and industrial demands to rise, signaling a prosperous economic future for businesses in the region.

Stance CRE: Your Guide to Commercial Real Estate

At Stance CRE, we understand that whether to lease or purchase is a decision that must align with your business's stability, growth potential, and financial strategy. Our team of experts, deeply rooted in Riverside's culture and economy, is ready to assist in identifying the optimal real estate solution for your business.

In a market ripe with opportunity, both active and passive investment approaches can yield substantial returns. As your local experts and neighbors, we're committed to supporting your success within Riverside's flourishing community. Contact Stance CRE to explore the possibilities and chart the best course for your commercial real estate ventures.

How Stance Commercial Real Estate Can Help You

Navigating the dynamic landscape of the commercial real estate market, especially in the high-speed environment of Southern California, can be a formidable undertaking. Rapid changes in any commercial real estate scenario can lead to unforeseen challenges. Additionally, securing a sale that aligns with your pricing and timeline objectives necessitates careful consideration of numerous supplementary factors.

Stance CRE stands as a valuable resource, catering to investors of all profiles. With a well-established history of augmenting investment decisions right here in Riverside, we offer more than just market acumen; we are deeply rooted in the local community.

Under the right market conditions, both active and passive investment options harbor the potential for consistent cash flow and return on investment. At Stance Commercial Real Estate, our connection to Riverside's culture runs deep. We don't merely operate within the community; we proudly call it home, and our fervor for the region propels us to assist you in accomplishing your objectives.

Feel free to contact us today at (909) 772-1212, and allow us to help you ascertain the most appropriate role to suit your needs!

by Joe Stance

Decoding the Cast of a Commercial Lease Agreement

Navigating the waters of commercial leasing requires an understanding of the various roles and responsibilities defined in the lease agreement. Whether the lease is for a warehouse, office space, commercial retail, or another business-focused facility, you're entering into a legally binding contract. This contract isn't just a simple agreement between a tenant and a landlord; it's a multifaceted document that can involve a variety of stakeholders once you peel back the layers.

The Core Participants in a Commercial Lease

At its core, a commercial lease involves the tenant, who conducts business on the property, and the landlord, who owns the property. It's crucial for businesses to ensure that the lease is under the company's name, shielding personal assets from liability. While a personal guarantee might be needed, the lease should firmly be in the name of the business entity.

Commercial Lease 101

A commercial lease is an agreement where a business tenant rents property from a landlord for business operations. These leases are frequently negotiated through commercial real estate brokers acting on behalf of their clients. Ultimately, it is the owner, also referred to as the "LESSEE," and the business, acting as the "LESSOR," who execute the contract. The lease grants specific rights to the tenant over the property and spells out the duties of both parties for the duration of the lease.

Comparing Commercial and Residential Leases

While they share similarities, commercial leases differ substantially from residential leases. Residential leases come with numerous legal protections for the tenant that cannot be waived—even by mutual agreement. Commercial leases, conversely, offer a canvas for customization with few restrictions beyond basic contractual laws. This flexibility necessitates that each commercial lease be negotiated and reviewed meticulously to include the precise terms desired.

Key Distinctions of Commercial Leases

Consumer Protection: Unlike residential leases, commercial leases are largely exempt from consumer protection laws, such as privacy rules or security deposit caps.
Custom Agreements: There is no one-size-fits-all for commercial leases; each is tailored to the landlord's requirements, demanding thorough examination by the tenant.
Longevity and Legality: Commercial leases represent a significant financial commitment and are not easily altered or terminated.
Negotiability: There's a greater scope for negotiation in commercial leases, allowing businesses to request custom features and landlords to offer incentives for tenancy.

Additional Stakeholders in the Lease Lifecycle

Identifying all parties involved in a commercial lease is straightforward until changes like assignments, subleases, or mergers come into play. Any of these actions can shift the responsibilities outlined in the lease, making it essential to track who is accountable throughout the lease term.

Lessor: The lessor, typically the landlord, is the entity granting the lease, bearing the legal obligations of the contract.
Lessee: The lessee, or tenant, is the party leasing the space, recommended to be the business entity to prevent personal liability.

Potential Additional Roles

Guarantor: This party guarantees rent payment should the tenant face financial difficulties, sharing responsibility for the lease.
Assignor/Assignee: The assignor transfers their lease interest to an assignee, who then becomes the new tenant.
Sublessor/Sublessee: In sublease situations, the sublessor (original tenant) arranges for a sublessee to occupy the space, without relieving themselves of the original lease obligations.

Influential Parties

Anchor Tenant: An anchor tenant is a major business that draws customers—and consequently, other businesses—to a commercial development. Typically occupying a substantial portion of a shopping center, they often enjoy lower rental rates due to their draw and size.

Conclusion

A commercial lease is more than just an agreement; it's a complex network of relationships with varying degrees of responsibility and commitment. Whether you're a landlord or a tenant, understanding each party's role is crucial for a harmonious and successful business relationship. And with expert guidance from a company like Stance, property owners can ensure they're making the most of their commercial investments, navigating the complexities of commercial leases with confidence and clarity.

How Stance Commercial Real Estate Can Support You

Navigating the dynamic commercial real estate market, particularly in a fast-paced region like Southern California, can be a daunting challenge. Changes in any commercial real estate situation can occur rapidly, presenting unexpected challenges. Furthermore, achieving a sale that aligns with your pricing and timeline objectives involves considering a multitude of additional factors.

Stance CRE serves as a valuable resource, catering to investors of all types. With a long-standing track record of enhancing investment decisions right here in Riverside, we offer more than just market expertise; we are your local neighbors. Our roots are firmly planted in the community.

In the right market conditions, both active and passive investment options offer the potential for consistent cash flow and return on investment. At Stance Commercial Real Estate, we are deeply ingrained in Riverside's culture. We don't just work in the community; we call it home, and our passion for the area drives us to assist you in achieving your goals.

Reach out to us today at (909) 772-1212, and let us help you determine the most suitable role for your needs!

by Joe Stance

Top Challenges Small Business Owners Face

Starting a business is a rewarding experience but it is definitely not easy. The last two years proved that small businesses face challenges that we cannot even predict. From building brand awareness and getting customers to keeping those customers and hiring the right kind of people to help your business grow and scale, you will face hurdles on a daily basis regardless of which industry you are in. Owning a local small business is not for the faint of heart but it is not impossible either. On the contrary, there are many common challenges every business faces and some you will eventually grow out of.

The City of Riverside is an exceptionally business-friendly local government. Riverside County has earned a reputation as one of the nation’s best places to work, or to start a business, including prominent businesses in the agricultural, manufacturing and distribution and high-tech industries.

If you are a small business owner or are considering starting your own business in Riverside, the market may be primed to help you reach success. There are still a number of challenges you will likely face. Before you forge ahead, you should be aware of the issues because being prepared is half the battle!

Here are some of the most common challenges you may encounter.

Money Management

Nothing can hold a business back like money problems. As a business owner, you not only have to have enough money to pay your business’s bills, but you must also have enough money to pay your personal expenses, too. While most larger companies have enough cash flow to keep up with payroll and keep the lights on, small businesses are often in a less stable situation. Whether your business or your life, one will likely emerge as a capital drain that puts pressure on the other.

If one big client fails to make a payment, your small business may not be able to cover its bills. Money management is always crucial to business success but becomes vitally important when cash is flowing into and out of the business often. In the beginning, it may be easy for an entrepreneur to handle all the accounting and bookkeeping tasks, but it is a good idea to get professional help to make sure you are not missing out on any valuable credits, or risking an audit.

Too Many Overheads

Overheads are one of the biggest small business challenges, and excessive overheads have driven many otherwise good companies to the wall. Resolving them involves paying close attention to what customers actually want and providing products or services sharply tailored to suit. This means working out what customers need and trimming back unnecessary services, or elements of products that customers are not particularly interested in. Analyzing your transactions and asking existing customers what they want is helpful. Where you add value, make sure that it does not increase overheads.

Lack of Time

As a small business owner, the temptation to do everything yourself can mean that you burn the candle at both ends. The smaller your business, the more tasks you are likely to take on yourself. You are the one responsible for executing business plans and winning new business, but you might also be answering the phones, filing the paperwork and dealing with vendors. This time crunch can be difficult to manage and can cause important matters to fall through the cracks.

Fatigue is one of the most commonly overlooked small business challenges and can leave you disorganized, forgetful and cranky, not paying as much attention to clients as you should. It also results in you making mistakes. Business owners have to pace themselves, which includes embracing strategic delegation, something that for any highly motivated individual isn’t an easy ask. You could also consider delegating tasks that are outside your skillset to specialists, such as accountants or legal experts – the results will likely be more professional and can save you endless headaches.

Trouble Finding Good Employees

Hiring the right people to help your business grow is a big challenge for small businesses because they often lack the resources to compete with larger companies. In many instances, your small business’ benefits package will not be able to compete with what large companies offer. Additionally, while large businesses can hire people for one specific task, you may need employees who can handle multiple tasks.

Instead of hiring a full-time employee, consider reaching out to freelancers and independent contractors who work on their own terms on an as-needed basis. Outsource things that you and your team need the most help with, so you can spend more time on tasks you have the know-how to do well.

Take ownership of attracting the right candidates to your company’s brand and making them interested in learning more about you. This builds a recruiting pipeline that helps to give hiring the same predictability as sales. Then, convert those leads into applicants.

Customer Acquisition and Retention

Small businesses are often dependent on their first client as they get things up and running. The problem comes when a company allows itself to become dependent on a single client. If a single client makes up more than half of your income, you are more independent contractor than a business owner. Diversifying your client base is vital to growing a business, but it can be difficult, especially when the client in question pays well and is on time. Keep in mind that customer acquisition is more expensive than retention because return customers are more likely to continue spending money with your company. They are a wonderful source of word-of-mouth – and can share bad experiences just as they can share the good.

Start by researching your customer base, and identifying the characteristics of your existing best customers (those with the highest volume of sales, and the most repeat custom). Make sure you integrate into this analysis any costs associated with particular customers, so you have a clear view of their net value to you.

Spend time figuring out who your ideal customers are. What do they like to do? Where they are spending their time online? What are their main pain points? How does your product or service address them? Getting specific can help improve your results – and guide your marketing channels and budget. Your marketing strategy will be unique based on your budget, industry, competition, and more. The more effort you put into getting it right and making adjustments based on real-time results, the better.

Difficulties Balancing Growth and Quality

It is a common story: one day you’re celebrating landing a big client, and the next day you are struggling to keep up with the new client’s needs. While business growth can be seen as a good thing, it can backfire. If the growth happens so fast it comes at the expense of quality – in terms of your product or service, customer experience, or customer service, then you will end up suffering. Sometimes your business must sacrifice to scale up.

In many instances, you have to make the choice between working long hours—and asking your staff to do the same—or finding ways to cut corners. Neither is a great solution, meaning that, ultimately, you will have to find a way to grow your business without hurting your business.

Ineffective Web Presence and Brand Awareness

Marketing, in general, can cause small businesses a number of problems. Advertising is expensive and word of mouth is slow-moving. Brands like Amazon, Toyota, Kleenex and Coca-Cola are all household names and do not need to worry much about brand awareness. Small businesses have to work hard to become well-known. The internet provides opportunities to find customers without breaking the bank, but many small businesses do not do enough with their online presence. You probably know that you need a website, but is it SEO optimized?

PR is not all about paying for media coverage – it is about focusing your brand voice and finding your place in the market. Put effort into creating high-quality blog content. It will help you establish authority and trust in your industry, while also helping drive traffic to your website and convert it into leads.

You also need to consider social media like Facebook and Twitter, and pay attention to review sites like Yelp where one dissatisfied customer can damage your reputation.

How Stance CRE Can Help You

Every challenge has a myriad of solutions. Navigating the commercial real estate market can be an intimidating task, especially in a fast-moving market such as the Inland Empire. Any commercial real estate situation can change in the blink of an eye, leaving you to face challenges that you never anticipated. And to make a sale that meets your pricing and timeline goals, there are even more factors to keep in mind.

Stance CRE can be a great resource regardless of which type of business owner you are. We have been adding value to business owners’ decisions right here in Riverside for years. We are not just market experts, we are your neighbors! We are a local business with local interests.

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Tips for Collaborating with Other Local Riverside Businesses

As a business owner, it is easy to set all your sights on gaining customers and revenue. Between ads, events and social media posts, your limited budget and already busy schedule can become overwhelmed quite quickly. As a small business, it is crucial that your community know you exist so you can get customers in the door.

We have all heard the saying “there is strength in numbers” and this is so true for business partnerships. Riverside is a unique little town… we have the amenities of a city while still embracing our small town charm. Located in the heart of the Inland Empire, Riverside is home to a wide array of locally owned shops, restaurants, delis, music venues, breweries, coffee houses, and more. This spirited environment offers so many opportunities for small businesses to collaborate with each other to build a network that is equally beneficial for all involved.

Collaboration between small businesses can be hugely beneficial. Not only can it increase exposure for both companies, it can result in more leads and greater overall success compared to working on the same initiative alone. Partnering with another company with complementary expertise can enrich the content and attract a wider engaged audience.

Below is a discussion concerning how teaming up with other businesses can positively impact your business and how to be successful at it

Why Partner with Local Businesses?

Strategic partnerships are the key to bringing communities together. Consumers want to buy from locally owned businesses rather than national chain retailers because studies have shown that about 67 cents of every dollar spent at a small business stays and circulates in the local community. Today’s consumers are conscious of the fact that every time they purchase from a small business, they are not just adding to a bottom line of an already wealthy company, they are keeping a neighbor’s mortgage paid and food on their table.

As consumers grow ever more interested in shopping small and helping out their fellow neighbor, the opportunity for small business owners to partner up with other local businesses becomes more apparent and more important.

Partnerships Bring Brand Awareness to Both Businesses

The good thing is that these partnerships do not have to cost anything. The biggest benefit is the word-of-mouth from the owner to their customers. The businesses within the partnership will share info about each other’s business. Your products and services likely do not cover everything your customers need, so make strategic partnerships could unknowingly fill that need for customers.

Choose Businesses That Complement Yours

Partnerships work best between businesses with similar interests in the industry. Therefore, there is more to benefit from a business that complements yours than one that does not.

When it comes to collaborating with other local businesses, similarity can be your ally. It is a good idea to start with other businesses that are like your own, because these partnerships keep everyone’s customers first.

Here are a few types of partnerships to consider, but do not be afraid to think outside the box and get creative with who to partner with.

Complementary Products & Services: Collaborating with businesses that your customers are likely to buy from based on their interests, purchases, and needs is a great fit. For example, a massage therapist could partner with a local soap maker or local essential oils company.
Creative Parallels: Look for businesses that are similar to yours but offer different services or focus on a different specialty or demographic. For example, a hair salon could partner with a dog groomer to offer complementary discounts for similar services for dogs and cats. Think of companies you might refer your customers to for other ideas on who to collaborate with.
Fan & Local Favorites: What other local businesses do your customers love? If your auto repair shop is down the street from a donut shop, offering a free coffee to your customers while they wait could also bring in customers for other items for the donut shop.

What Can You Do With Collaborators?

Once you have identified local businesses you want to work with, what should you do to collaborate together? Here are a few ideas.

Event Collaboration

Local events provide an important opportunity to connect with your community. Sharing a booth at the local fair or street concert allows your business to make a connection face-to-face with potential customers. For example, if you own a small winery, sharing a table with a florist will enhance your display while also giving the florist a chance to get their name out there. This is a huge opportunity to resonate with potential customers while saving money in booth fees.

Social Collaboration

Calling attention to local businesses you have partnered with is a friendly way to use your following to expand the other businesses reach, and vice-versa. To do so, build a few posts into your social content calendar that directly tags your partners to show off what great things the other business is doing, and then collaborate with that business partner to have them also build posts that highlight your business. These types of social posts expose the followers of BOTH accounts to new businesses they are sure to love. After all, if they follow your business account, they will trust that your friends should be their friends too.

Merchandising Collaboration

The key to merchandising appropriately is to first identify the goals you are trying to achieve. Whether you want your business or brand to be associated with a specific business with complimentary products or services or if you have an important anniversary product that could use some help to be showcased in a special way, collaborating with another small business may be mutually beneficial. If your goals are centered around creating attention for your business or products, try retail merchandising, you could try placing another business’ items strategically where you transact with customers. And a key detail to note with this option is that placement of your products near related items in a convenient and discoverable location will directly communicate the benefits your product brings to your target customer.

How Stance CRE Can Help You

Navigating the commercial real estate market can be an intimidating task, especially in a fast-moving market such as the Inland Empire. Any commercial real estate situation can change in the blink of an eye, leaving you to face challenges that you never anticipated. And to make a sale that meets your pricing and timeline goals, there are even more factors to keep in mind.

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Ways Your Small Business Impacts the Community

When you run a small business, it can be easy to feel like your impact is small too. But in reality, small businesses form the backbone of any community because they create jobs for locals, they encourage economic growth and they lessen the environmental impact. Small businesses also each bring personality to the community and add something unique while also sharing common values and characteristics.

Your small business is incredibly valuable and not just because it puts food on your table and keeps a roof over your head. Small businesses are an asset to the local community because they have a connection to the town and people that big corporations will never have.

Small and local businesses have more community impact than on their designated once-a-year Small Business Saturday awareness events. Celebrating a small business is about recognizing and cherishing the positive impact it holds around your community and local government, plus all of the independent and unique products or services not found with big businesses.

As a small business ourselves, we at Stance CRE know that providing the right service can set you apart from the big brands. We also live, work and play in Riverside and we want to see you succeed. We also want you to know the impact your business has on Riverside.

So here are some ways your small business is helping your local community.

Local Jobs

This one seems obvious, but it is likely the largest contribution as local small business has. With the increase in local small businesses comes an increase in the number of available local jobs. Local jobs are ideal because they reduce the amount of traveling and commuting employees need to do to get to work and encourages more people to stay in the area.

By opening local jobs, your area’s unemployment rate can start to see a decrease, producing great numbers for your economy. Those who work locally also tend to shop locally because they do not need to commute away from their city. When people support a local business, by working there or buying there, they are supporting their local economy too. Picking up lunch at local delis, buying from local crafters and even drinking at their local brewery all give a community feel.

More Money in the Local Economy

When customers patronize a local business, most of the money they spend will end up circulating back into the local community. Local businesses pay local taxes which means more revenue goes back into the community. That additional revenue means more money for improvements to city roads, schools, and other needs. Small business owners also tend to outsource with other local businesses – for example, if a local coffee shop wants to add a mural to their wall or if a local retailer needs to do some renovations, those small companies are more likely to seek out another small business in their local area instead of going with a large company.

Similarly, small business owners themselves tend to shop locally as well, as a way to encourage others around them to do the same. Owners of small businesses tend to eat at local restaurants and shop at local retailers, and often encourage their friends and family to do the same.

While shopping online is easy, it does not keep tax revenue local. This is a problem many small communities face. Another issue is large warehouses and shopping centers. They often strain local resources rather than create more improvements for the community. The development of these large companies can also stretch a city’s budget.

Increased Tax Base

As mentioned above, small local businesses contribute hugely to the economy in the local area and nationally. With the revenue that small businesses generate, taxes paid to small businesses, and the local taxes paid by small businesses, end up paying for community improvements such as schools, green space, public transit, and health care. Conversely, taxes paid to big corporations, or when shopping online, may not stay within the local circuit.

In addition, when local residents shop in local stores, their tax dollars are put back into their local community. This creates a ripple effect. Those small businesses are then more likely to shop with local suppliers and distributors, ultimately growing the economy in that area.

Encourage Entrepreneurship

Small businesses, freelancers and partnerships on the small side all contribute to the entrepreneurial spirit of a location. By starting a small enterprise, you are taking charge of your own future in a really big way. Successful small businesses inspire others to consider starting their own small businesses, encouraging innovation and healthy competition in your local area. This is essential for any city to thrive and generate new ideas to create diversity in a community.

Entrepreneurship requires a lot of effort and patience, and involves more than just having a good idea. Often the advice and information from a person who is from a smaller business can feel more relatable than a CEO of a big corporation who did not necessarily start the company he/she is working in. The general idea is that when you see someone in your community doing something, it is not a far stretch to envision yourself doing it as well

Small businesses also encourage entrepreneurship by providing hiring opportunities to local high schools and community colleges, giving students hands-on experience to learn professional skills and what it takes to run a business. This can help students discover their passion and gain practical experience that they will carry with them. Finding new ways to make a living is more innovative than it has ever been.

Community Identity

Forming and shaping the identity of a community might be one of the biggest roles of small businesses. They reflect the communities from which they come – having been founded by local entrepreneurs and maintained by local employees, small businesses are a portrait of the local area. Each small business fills a specific need with a personal touch that often reflects the community around them. Small business owners can connect with their clientele on a more personal level and get to know their needs and desires.

Their participation in the community can help reflect an important history that is crucial to the town. Being a substantial presence within the local community can shape the character of the people as well, directly influencing tourism in the area as well as connecting with everyday individuals passing through. This can encourage more innovation with diverse, locally made products and allows small businesses to tailor their inventory to reflect their community’s specific tastes and demands.

There’s a small-town feeling that arises when anyone walks into a local business — the staff is polite, the owner is present and friendly and customers always feel welcome. Think about it like this – if you are walking down the streets of downtown Riverside, the collection of restaurants, coffee shops, and boutiques create the unique charm of the city.

Product Diversity

The role of a small business is to be innovative, new and diverse. To stand out from the larger companies, small businesses need inventory and products that are fresh, new and unique. An independent retailer will generally provide one-of-a-kind products that are unable to be found at larger retailers.

With small businesses, there is the ability for cooperation with other local businesses. Many products can be made because of the goods and services of other local outfits, allowing the profits to return to the local economy. Technology can also help small businesses thrive, especially regarding online shopping. Providing multiple shipping options can enable community members to be flexible with their shopping, viewing all of the different and innovative products available in a local setting.

Local Decision-Making and Involvement

Incorporating small businesses into local government decisions can help ensure the small town culture within the community. By actively producing wealth in the economy, small business owners should be invited to participate in governing meetings and decision-making processes.

Aside from direct political involvement, a small business should join the Riverside Chamber of Commerce to get involved in the community. Many small business owners will hold a weekend event or fundraiser with other local businesses, donate portions of their sales to local charities or organizations, volunteer at fairs and festivals. Some schools and sports teams even reach out to local businesses for sponsorships of tournaments and events. Small business owners tend to sponsor, organize and host local events to maintain a lively community.

Less Infrastructure and Low Maintenance

Small businesses do not require as much work and maintenance as your standard large corporation. Your smaller store will have much fewer rules and regulations to adhere to. Meaning you can spend much more time working on your goods and services than trawling through paperwork. Because they are often placed in the middle of a city or downtown area, these small businesses can be added to already existing buildings. This positively affects the economy because there is less city planning that needs to be done.

There is also less labor and work involved than mapping out and building a new mall or department store. When someone needs to speak to the manager, chances are you are going to be able to help them in ways that a bigger chain just cannot. The personal touch matters and smaller companies have it in bulk.

When a big business can get tied up in red tape, your application processes, insurances, permits and even just the process of opening the store will be more straightforward.

Better for the Environment

Local businesses tend to set up shop in pre-existing buildings. Bigger companies and corporations often build new infrastructure, leading to less green space in the community and more harmful materials. Small businesses do not take more space – they typically use the space that is already there, which is what environmental conservation is all about.

Small businesses also tend to adopt environmentally friendly practices, such as using more recycled materials, as well as reuse and update old buildings to include more sustainable features.

How Stance CRE Can Help You

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Get Your Small Business Involved in the Riverside Community

Your local community is just as integral to the wellness of your business as it is to all of us as individuals. No man is an island and the same goes for businesses. Businesses, especially local small businesses depend on a vast network of others around them. And without these relationships, success is impossible.

Did you know that 94% of people say they prefer to buy local than from a big chain? But one of the obstacles that many small businesses face is finding creative and cost-effective ways to advertise who they are, what they do and where they are. The best solution is community involvement.

Unlike big corporate chain stores, local businesses have closer access to customers and a better connection to the community they operate in. That means businesses like yours (and ours) can have a direct positive impact on your community by getting more involved. At Stance CRE, we value our connection to the wonderful, quaint city of Riverside. We like being an extension of this community. We strive to be an integral part of where people live, work and play. After all, we live, work and play here too!

Doing good for the community is also good for business. Not only will volunteering and getting involved build community leaders among your organization, but it will also show that your business is trying to make a difference within your neighborhood. Your potential customers will notice and appreciate these efforts.

Here are some ways to get more involved with your community and give back as a business.

Serve on a Board

Joining a board, such as a nonprofit board, business organization board or school board, is a great way to get involved with your local community and to help serve the community’s needs. These boards also offer an incredible opportunity to network with other local leaders and make important connections that can contribute to your business’s future growth.

At Stance CRE, we feel that this is one of the best ways to become part of the change and growth we all strive for. That is why Heidi Stance serves as the Social Committee Chair and Impact Committee Chair for the Pick Group of Young Professionals and Joe Stance serves on the Social Committee. The Pick Group is a diverse network of young professionals interested in engaging with and bettering their community while pursuing excellence in the workplace.

With monthly meetings and several events, including a year-end awards ceremony, The Pick Group allows the owners of Stance CRE to guide and shape young professionals and helping other local businesses get involved through sponsorships. This year’s awards ceremony event is on the rooftop of the Riverside Arts Museum on October 13^th, with a theme of “Above Water, Sky’s the Limit”. The community can purchase tickets at https://www.pickriverside.org/ .

Join Your Local Chamber of Commerce

Your local chamber of commerce is a centerpiece for business in your community. Getting involved with your own allows you the opportunity to network with other small businesses in the area. It also gives you the opportunity to become among the leading experts in your industry.

As members of the Riverside Chamber of Commerce, we at Stance CRE attend monthly chamber events, mixers and other meetings. We have always valued the opportunity to be part of a like-minded group dedicated to helping businesses and we actively advocate for new businesses in Riverside becoming Chamber members. The Riverside Chamber of Commerce offers programs and solutions for all stages of business and oftentimes, new businesses can find mentors that include established business people. Through the chamber, you can shape the future of education in your area by working with the leaders in business, government and education. And you will be a part of the chamber directory that may help your business get more traffic and customers.

Attend Other Local Business Group Meetings

In addition to serving on boards and joining the chamber of commerce, many cities have a myriad of opportunities for small business owners to network and help the communities. For instance, Riverside Downtown Partnership serve as the essential liaison between downtown businesses and local government to effectively represent members’ interests and advances downtown business priorities. We at Stance CRE are active members and we attend meetings regularly. The goal of Riverside Downtown Partnership’s is to foster a vibrant, safe and successful business and cultural community in downtown Riverside.

Riverside really is a unique community. The community is committed to making the business environment as beneficial as it can for all involved. The best way to reap these benefits is to put your hat into the pile and jump in with as much time and effort as you can. Attend these meetings. Come say hi to us! Joe and Heidi Stance would love to meet you. Remember that within any community, you get out what you put in.

Donate to Local Charities

Donating to a charitable cause or local nonprofit is a simple yet effective way to give your community the tools it needs to make a difference. This is a good entry point for businesses that want to give back, as it can be as easy as clicking a button on a website or mailing a check. You might also consider donating products or offering pro bono services to community organizations for even greater brand exposure and community impact.

Sponsor Local Events and Sports Teams

Nearly every community hosts local events and organized sports teams. Sponsoring these events or teams allows for an opportunity to be a part of your community culture, while also generating valuable engagement and positive public relations for your business. Get your name on the uniforms by sponsoring a youth sports team, purchase advertising space in event programs or donate free goods or services to organizations when requested for raffles and other giveaways. Making donations can go a long way toward supporting goodwill in the community while making a direct impact on the organizations you support.

Volunteer Your Time

We all know that one of the best ways to get involved in your community is by getting hands-on experience and volunteering. Pick a cause that is important to your team and that aligns with your brand values, and plan a day to volunteer together. Aside from supporting a worthy cause, you will be building team camaraderie and contributing to a positive company culture. This creates a relationship with the community and feeling of connection.

The Importance of Businesses Being Involved in Communities

At Stance CRE, we love to help businesses in Riverside. We know first-hand how deeply most business owners care about their community and we hope you realize how important community involvement is for your day-to-day operations.

Here are a few reasons why it is so important for businesses to be involved in their communities.

Community Involvement Gives Back to the People Who Support You

Your local community supports your business, and getting involved helps you to return the favor. A business’s involvement affects positive change and investment by bringing members of the community together to enrich lives. The health of your community has a direct impact on the health of your business, so get involved and all will prosper.

Community Involvement Builds Strong Bonds

Leaders who can tap into their team’s group intelligence are leaders who build strong and meaningful connections with their teams. Make it a priority to develop good collaboration and camaraderie. Strong relationships build strong teams. While working in your community, you will meet your neighbors who will then become personally familiar with your business. The strong bonds built with your public will have incredible benefits for your organization in the long-run.

Whether it involves raising money for park improvements or sponsoring a school program, make sure that it is something that your company can get behind and remain passionate about. By doing this, you will create monumental waves in your community and solidify lasting relationships.

Community Involvement is Good for Business

Today’s consumers are more informed than ever before and many strive to keep their dollars local. The businesses that a consumer chooses to spend their money with are often directly impacted by corporate responsibility and philanthropy. In fact, millennials prefer companies that give back to their community, and are more likely to recommend them to their friends and family. In short, consumers recognize and appreciate when organizations give back to the community, and they are likely to direct their business to those who do.

Community Involvement Helps You Get the Best Hires and Retain Them

Customers are not the only group drawn to philanthropic companies. Employees pay close attention to those who give back, as well. In fact, it is quite a powerful recruiting tool. Giving your employees the opportunity to volunteer has even more impact. Initiating a volunteer program can enhance engagement in the work place, build professional skills and encourage productivity- while supporting the community at the same time.

How Stance CRE Can Help You

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by jstewart

Turning Your Commercial Space Into a Coworking Space

As telecommuting and freelancing become more common, coworking is turning into a viable alternative to working from home or a traditional office. Even in today’s digital age, having a physical place to work still matters. Beyond that, coworking spaces are as much about being around other people as they are about having that aforementioned place to work.

Cities like Riverside provide a thriving coworking culture as people crave social interaction, access to conference rooms and the ability to establish a better work-home balance. As a booming college town that is home to numerous start-up and e-commerce companies, Riverside residents realize that work in the new economy is meaningful, innovative, collaborative and fun. Those operating successful coworking spaces are already beginning to differentiate themselves into segmented market niches to meet the specific needs of a diverse range of workers.

Do you have a vacant retail space? Only operate a storefront a few days per week? Monetize this unused space and create new lines of revenue when business is slow or during your closed hours. Offering amenities such as private offices, meeting rooms, open lounges and cafes, allows users to work efficiently. It is a great alternative over working from home, with the benefit of community and connections that help your business progress.

If you are considering utilizing part or all of your commercial building to start a coworking space, the expert team at Stance CRE would like to guide you through the details and highlight things to consider. Our passion is in commercial real estate and our dedication is focused on creating a flourishing culture within our quaint, beautiful city so that Riverside, California becomes a hub for small businesses and entrepreneurs across the Inland Empire.

What Is a Coworking Space?

Coworking is an office-sharing arrangement between individuals and (sometimes) small businesses. In some cases, the arrangement is very informal whereas a business owner who owns or leases an office space that is too large for their needs then sublets desks and offices to others. Coworking spaces also operate as formal businesses, renting out desk and office space to freelancers, telecommuters and even business travelers.

These workspaces provide flexible memberships to remote workers and businesses. Due to this increased flexibility and new opportunities to network, coworking spaces appeal to a large demographic of users. Operation models vary, with some coworking businesses charging daily, weekly, or monthly rent, while others sell memberships that allow the member to make use of the workspace and its amenities. Coworking spaces usually do not utilize long-term membership contracts or leases.

In addition to offering office space and shared use of amenities, some coworking space owners actively encourage collaboration between members by sponsoring networking events or “getting to know you” websites that allow members to introduce themselves to one another.

The Rise of Coworking In Retail

As a retail owner, learning how you can further monetize your underutilized space can turn your vacant retail space into a super-profitable, vibrant coworking community. By offering professionals a new way they can work and interact, you can become the solution many in our community are searching for.

Companies like Walmart and Amazon have completely disrupted the retail industry by offering consumers new ways of purchasing goods. As a result, many local retail businesses have had to close their doors or have scaled back the need to lease storefronts in highly trafficked areas. Paying high mortgages on office or retail space in the modern era just does not seem to make much sense for many small business owners. Due to the impact of large e-commerce brands and increasing retail vacancy rates, there needs to be a “new use” for these retail locations. The trend toward coworking spaces seems to be on the rise for this very reason.

The Benefits of Turning Your Storefront Into A Coworking Space

If you already own or have invested in retail, by creating a coworking model that is complementary to your target audience’s needs means that you can turn your slow hours or closed hours into a source of revenue.

You already operate a space to sell your products/services. By leveraging your current investment, you can maximize your opportunities by making money from workspace memberships and customer experiences.
Creating a popup workspace during your closed or preferred hours, will allow you to build a loyal community by creating unique experiences around your space.

Coworking can increase foot traffic to a building or retail space. Coworking presents a viable solution for vacant retail space by decreasing vacancy and driving additional foot traffic with a guaranteed daytime population. Coworking brands that also offer a coffee shop within their space, means that more passersby are likely to stop and enter your building.

Coworking Model

Not all coworking spaces offer the same membership. Below, we break down the three most popular space layouts below:

Open Space Coworking

As the name implies, this model mainly offers open desks, lounges and sometimes a conference room for members who need to have privacy. Memberships are offered for specific access to the shared areas, with the option to purchase a dedicated desk to store your belongings if you so need.

Coworking & Office Space

Not all members can work in open space. If the need for privacy is crucial, these users cannot utilize the open coworking model. The coworking and office model allows these customers access to their own dedicated, lockable space.

Shared Office

Unlike the traditional open space coworking model, the shared office model consists of 90% dedicated lockable offices with one smaller open common area. This model is more like a typical office that caters to smaller companies who want a suite.

What Are the Costs Involved in Opening a Coworking Space Business?

The startup costs associated with opening a coworking space business are manageable. The primary costs include leasing a commercial space and purchasing:

Furniture
Networking Equipment
Decorations
Miscellaneous Office Supplies (e.g. trash bags and toilet paper)
Insurance

Who Is the Target Market?

The target market for a coworking space business is business owners and professionals with a focus on serving entrepreneurs, solopreneurs and small business owners in the local community. In a destination city like Riverside, your coworking space could cater to large corporations with traveling employees. Riverside is also home to 4 major universities, meaning you could expand to cater to graduate students, remote workers and freelancers.

Other industries and professionals that could be well-served by a coworking space include Software Developers, IT Services, Financial and Legal Services, Marketing and Advertising Services, and more. Developing a coworking marketing plan that communicates your services to the types of users it serves is best because it helps you identify avenues for future growth.

How Does a Coworking Space Make Money?

A coworking space business’ primary source of revenue is subscription fees, which clients pay in exchange for being able to use the space. Many coworking space businesses rent meeting rooms, offer classes and hold events for additional sources of revenue. Since the whole point of a coworking space is to provide flexible office solutions, most coworking space owners have multiple subscription options. Clients could pay by the day, week or month, with an extra charge for a dedicated desk, an office or a locker. Some spaces charge extra for use of a meeting room, while others including meeting room use in their standard fee.

With coworking locations expected to double worldwide by 2024, this is the perfect time to invest in a growing trend. Coworking spaces are continuing to trend and will soon become relatively mainstream. Coworking has become a global industry that can be as viable to big chains as it is to single, self-run locations.

Popular Revenue Streams

People collaborate in diverse ways and many need a location to perform a myriad of short-term and long-term tasks. There is a multitude of models to run a coworking space, but most include at least several options to monetize the space, the equipment and the human resources.

Membership Fees

Depending on how much privacy and liberty the coworker needs over the rented space, membership packages can include private offices, shared desks or dedicated desk options. Membership fees can be calculated at daily, monthly, quarterly or annual fees and can allow the member to use basic or more advanced amenities of the coworking space.

Membership Packages

This is an area where you can get creative. This option can vary based on the needs of the client. The more the member uses, the more cost-effective the package gets. A membership package can include benefits and discounts with restaurant, gyms, outdoor activities and even transportation services. These all meet the needs of the members and can be easily negotiated and incorporated into different packages.

Renting Amenities and Equipment

While your amenities could be free, you can also choose to charge for them. Premium conveniences like private audio or video call booths, individual lockers, social spaces, telephone lines, video and audio equipment, printers, computers, and even cloud storage for startups that need larger data resources.

Start a coworking space business by following these 10 steps:

Plan your Coworking Space Business
Form your Coworking Space Business into a Legal Entity
Register your Coworking Space Business for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Coworking Space Business
Get the Necessary Permits & Licenses for your Coworking Space Business
Get Coworking Space Business Insurance
Define your Coworking Space Business Brand
Create your Coworking Space Business Website
Set up your Business Phone System

How Stance CRE Can Help You

Typically, when we ask people what they do for a living, we ask where they work. We think about work and the workplace as synonymous. Lawyers work in a law firm and journalists work in newsrooms. Increasingly over the past decade, coworking spaces have begun popping up in areas around the country. Riverside is a city prime for such spaces.

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by jstewart

The Ultimate Guide to a Smooth Office Relocation

A business will grow and change many times over the course of its life. As a company continues to expand, there will likely come a day that it outgrows its current setting. Relocating your office to a bigger space can be quite daunting and could take several weeks or even months to see it all the way through. Though it can be a stressful process, if your team spends time planning and preparing, the entire transition can be relatively smooth.

Addressing the details early and making arrangements beforehand will streamline the process enough that moving your team from its current location to a more suitable coworking space will feel like just another day at the office.

Whether you are moving because of rapid growth, a better location or even downsizing to a smaller space due to more remote employees, it is very easy to get lost in the sea of paperwork and cardboard boxes that pile up during this process, all while you still have a business to run.

To make your move a little simpler, our team has put together an office relocation project plan to guide you through the entire process of moving an office, from planning to unpacking. At Stance CRE, we are here to help the city grow and to help your business navigate the landscape of this charming college town. After all, we eat, sleep and live in this city. To us, Riverside is more than just a place… it is home!

Getting Started

Long before you begin packing up, you will need to start devising your relocation plan. In the early stages, it does not need to be completely detailed, but your strategy should become clearer as the move draws nearer. Begin with the big picture stuff, including the general area in which you plan to relocate, lease stipulations and employee needs.

When moving locations, ease of accessibility for both your clients and employees should be one of your top priorities. Understand your brand’s public perception as well as the feel of the neighborhoods you are considering. The new location need to make sense for your specific business. Draft your business development and expansion strategy with future expansion and ease of finding a labor force. Remember that Riverside is a college town, so newly graduated students will need a reason to stay local. You might also be able to find interns through the various colleges in the city. Riverside is a hub of higher education, boasting three internationally recognized universities and colleges (Cal Baptist, La Sierra, UCR) that serve more than 50,000 students.

After you have taken all of these factors into consideration, a Stance CRE agent can help you along in the process. While you may be able to find a suitable office location on your own, it can be quite a challenging and time-consuming process. Also keep in mind that some landlords work exclusively with real estate brokers, thereby limiting your options. You should also take this planning phase to discuss the move with your employees and any investors you might have.

Not all locations are created equal and not all of the available options will fit into your budget, so you will want to work with an agent who can gather a varied list of possible commercial properties. Take your time and compare the advantages and disadvantages of each location. In the real world, there is no place that offers only advantages, so be honest about the disadvantages as well.

Space Options

Planning an office move is a critical business decision, so of course it should not be taken lightly. Your new office home will likely need to meet your needs for the next few years or decades. Take into consideration all the services you need to run your business smoothly and put them on the list to check how the new place compares to your current infrastructure. Focus on tiny details that could become huge problems down the line.

First and foremost, make sure that you can afford the rent, taking into consideration the fact that you’ll likely be signing a lease. But there are plenty of other factors to include in your deliberations.

Finalize Logistics

Before you can begin preparing for your office relocation, you must ensure that you have completely settled the legal and financial aspects of the move. Begin by having Stance CRE review your current lease and finalizing the details of your new lease. Stance CRE will take special care when organizing the end date of your current lease and the start date for your new lease. In some instances, it may be best to have a bit of overlap between the dates of the two leases to create a buffer that ensures you have ample time to move all belongings from one office to the other.

During this time, you will also need to finalize the budget and timeframe for the move. If possible, try to allow for a bit of wiggle room in the budget in case things do not go exactly according to plan.

Before the Move

It is now time to get into the fine details. You should reserve elevators and loading docks for moving day and inventory everything you plan to bring along. Arrange for the storage or disposal of old files. Look into updated or new contracts for internet, utilities, office supplies, and other equipment like printers.

Develop a master relocation project schedule, including packing, unpacking, stocking, and cleanup. You want to be operational as soon as possible after the move. Verify your moving insurance, set security procedures, and make sure you can access the new location. Arrange for your staff to tour new premises a few weeks prior to the move to get acquainted with the new space.

Maintain an Open Line of Communication

Communication is key to executing a smooth office relocation. There will be many moving parts in this process, and maintaining an open line of communication is the best way to ensure that everything runs efficiently. There are several different groups of people you will need to communicate with during the course of the relocation.

First, you must maintain an open and honest line of communication with your employees. They will be the most directly affected by the move, so it is important to let them know about the office move as soon as possible so that they can plan ahead. Your new location might be farther away from their homes, so it is important to let them know the date they are required to report to the new location so that they can ensure they can make it to work on time.

Make sure that you continue to remind your employees about the move in the weeks leading up to it so that they don’t forget. You can enlist the help of your email marketing platform so that you can set automated email reminders to go out to their personal and business email addresses the closer you get to the move. This will ensure consistent communication.

You will also need to communicate with contractors and project managers to ensure that the new office will be ready in time for your move. Finally, you will need to communicate with your clients and customers. Anyone who would normally visit your office should be informed of the move ahead of time. This is another place where you can utilize your email marketing software to help you get the word out. You should also update your website with your new address so that people who look you up online can find you. Updating your website with your new address will improve your local SEO and help people who don’t have current relationships with your business find you.

Moving Day

Arrange with your building manager to have the air conditioning on during the move. Begin installing big equipment like servers as soon as possible. Keep an eye on your emergency contact list of experts for elevator maintenance, utilities, internet, and moving. Make sure your utilities are working. Turn on the lights to make sure that you have electricity. If the power is not working, call your utility company as soon as possible to get the problem resolved.

Set Up the Office

Set up the computers, workspaces, standing desks and machinery so that you can see how the office looks visually from a client or partner’s perspective. Doing this immediately can help you make changes to the layout before you commit. You should even set up a comfortable lounging area that your employees can go to relax the body from any work pains, such as arthritis or arm numbness.

Test All Equipment

Once everything is in place, install and test your routers, computers, telephones and printers, making sure each works and troubleshooting as you go along. Devise and internally distribute a new phone list and office map, outlining the locations of departments, administrators and managers. This will allow you to bring in your employees to start working as soon as possible.

Clean Up

Once the move is complete, pick up any garbage that was made from the move or unpacking supplies and equipment. When you’re done, do a thorough cleaning of the entire office space so that you can ensure it’s ready for employees and clients the next day.

After the Move

Once everything is in the new location, the harder work begins. Complete a detailed walkthrough of the premises, noting any issues or damages to report to the moving company or building owner. Audit the final invoice from the moving company against your contract.

Keep in mind that you are not yet done with your old space. Confirm the termination of your old lease or agreement. Collect parking passes, security cards and keys for your old facility and return them to the landlord. Complete and file all warranty information for all new furniture and equipment and update your fixed asset accounting system for all of those pieces as well. Confirm that your address has been correctly updated everywhere it needs to be. Schedule a press release and client announcement for the next business day.

Welcome Your Employees

Moving can be one of the hardest yet most rewarding changes your business will face. After the move, make sure you take a moment to breathe and try to move beyond the stress of relocation. Give your teammates and employees the same treatment, especially if they have called the old location home for quite a while. Welcome your employees to the new office by giving them a tour and showing them where their desks and workstations are located. If you have moved to a new, better location, you might even have a short get-together in the lunchroom as a celebration of your upgrade.

Get Back to Work

Now that you are officially moved in, and your employees are back, it is time to get back to work. Your new office should enable your employees to work more productively and efficiently. In the first few days of operation, make an effort to be positive and to improve office culture. Your entire team has been through a lot, so make sure everyone feels appreciated. The relocation will be much easier if you lead by example and treat the new space as a beneficial and necessary step forward. Ask your employees what they want to see in the office and try to make it happen within your means.

How Stance CRE Can Help You

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Supporting Small Business Through Shop Riverside!

Riverside is a neat little city. With a population of nearly 315,000, Riverside ranks 12^th in population within California and yet it holds onto its small town charm at the same time. Located in the heart of the Inland Empire, Riverside is a vibrant college town that offers a wide array of lively restaurants, eclectic music venues, local craft breweries, indie shops, quaint coffee houses and more. Riverside boasts an astounding 24 nationally registered historic sites and more than 100 city landmarks that encapsulate the city’s rich and remarkable history.

Modern in places and historic in others, Riverside really is a unique place to live and work. The residents of Riverside really care about the community and make a constant effort to support local small businesses. And this sense of community is bolstered by a City government that is united and dedicated to making small businesses thrive. This really is what makes this city so unique.

At Stance, we are here to help the city grow and to help guide new businesses through the landscape of this charming college town. That is why we support the City in its Shop Riverside! campaign. We like to position ourselves as more than just a commercial real estate firm. Our passion is with helping small business owners find the perfect property for their business. We take our jobs seriously. We do not want to just sell a property; we want to sell the concept of community. To us, Riverside is more than just a place… it is home!

Shop Riverside!

Shop Riverside, Riverside! The City of Riverside is a proud supporter of businesses large and small, which is why we all love it when you shop within city limits! The benefits of shopping within city limits not only builds a closer community but also a cleaner environment and a stronger economy. Spending your dollars here in Riverside provides a steady lifeline to keep businesses open. And when businesses thrive, they are generating taxes and funds which ultimately circulate back into our local economy. Employers and employees are not the only ones benefiting by your efforts to Shop Riverside; City parks, libraries, police and fire departments all receive a portion, as well. It’s a win-win for all!

A Stronger Economy. Oftentimes, local businesses hire local workers. In addition to staff for the stores, they hire local architects and contractors for building and remodeling, local accountants and insurance brokers to help them run the business, and local ad agencies to promote it. All these factors together create a “multiplier effect,” meaning that each dollar spent in a local store brings more to the local economy.
A Closer Community. Shopping within city limits can lend time for neighbors to connect; less time to travel and more time for connection.
A Cleaner Environment. Having stores in your community means you have opportunities to leave your car parked and do your errands on foot or by bicycle. Fewer cars on the road means less traffic, less noise, and less pollution. If you made just one trip each week via alternative transportation instead of making a round trip by car, you would reduce your annual driving drastically.

Your Riverside Chamber of Commerce

One of the best ways to form business connections in your community is by joining your local chamber of commerce. When you join a Chamber of Commerce, you are afforded the opportunity to network with other business owners. You will also receive discounts on valuable services for your business. And you may even have access to free marketing opportunities or customer referrals.

The Riverside Chamber is committed to helping local companies grow their business by taking the lead in programs and efforts that help create a strong local economy and make our community a great place to do business. The Riverside Chamber provides numerous opportunities for members to increase their contact base and have fun doing it through various meetings, networking events and committees. In addition, the Riverside Chamber makes hundreds of referrals to member companies every month.

As the leading advocate for business in the greater Riverside area, the Chamber also works to create and sustain a favorable business environment in which all businesses can grow and prosper.

As one of the most influential chambers in the state, the Riverside Chamber works closely with local government and other entities to strengthen the local economy. The Chamber is pro-actively involved in every important issue facing Riverside business. One of the largest Chambers in Southern California, the Riverside Chamber is comprised of nearly 1,300 business enterprises, civic organizations, education institutions, and individuals. As a member driven organization, the Chamber is committed to building a stronger local economy through the following means:

Actively promoting and supporting the local community
Fostering the growth and strength of our member organizations
Engaging in federal, state and local officials on behalf of business interests

The Chamber brings people together to solve problems, orchestrate meetings to discuss projects, and work diligently behind the scenes to forge agreements and compromises. Whatever is needed to advance the progress and welfare of the community and local economy - the Chamber is there!

There are MANY advantages to joining the Greater Riverside Chambers of Commerce.

How Do Small Businesses Invest in the Local Economy?

Economic impact modeling tracks the amount of money that is circulated throughout the local economy as a result of some initial spending or investment. One of the simplest metrics used in economic impact modeling is called a “multiplier,” which measures the additional economic impact created as a result of a direct impact. For example, a multiplier of 1.25 would imply that for every dollar spent in the economy an additional $0.25 of economic activity is generated locally, through indirect (business to business), and induced (household) spending.

Just by the nature of being local, small businesses are investing in their local economy. Small, independent businesses are more likely to purchase inputs (goods and services) from local suppliers and distributors, are more likely to hire a local workforce, and are more likely to do business with local financial institutions than are businesses with headquarters elsewhere. These things add up to a bigger multiplier for every dollar spent by the local business.

What Happens When You Shop Local

Here’s what happens when you “shop local”:

More of your money will be kept in your local economy
You embrace what makes your community unique
You create local jobs
You help the environment
You nurture community
You keep your tax dollars local
You create more choice
You took advantage of their expertise
You invested in entrepreneurship
You made your community a destination

Economic Impact of Shopping Local

Small businesses generate $68 of local economic return for every $100 spent with them.
Over $9.3 billion would be directly returned to our economy if every US family spent just $10 a month at a local business.
Businesses with fewer than 500 employees account for 99.7% of all US employers.
108 million shoppers spent $12.9 billion on Small Business Saturday.
Small businesses donate 250% more than large businesses to community causes.
Small businesses employ 58.9 million people.
Local business generates 70% more local economic activity per square foot than big box retail.
Shipping produces 1 billion metric tons of C02 a year.
More than a quarter of small business owners are immigrants.
48% of overall growth of US business ownership is attributed to immigrant business owners.
25% of local businesses closed because of low sales or limited cash flow.
65% of Americans’ shopping budgets is still spent in-store.
73% of searchers trust a local business more because of positive reviews.
65 million local businesses have a Facebook page.
But only 4 million are taking advantage of Facebook advertising products.
61% shop at local businesses because of their unique product selection.
56% of workers at locally owned businesses have high commitment scores.

How Stance CRE Can Help You

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Leasing Versus Buying Commercial Real Estate

Riverside is an ever growing market and the potential for success looms throughout this beautiful city of ours. As you look for the right place for your business, your main focus will probably be “location, location, location.” While proximity to your customers and employees will be a priority, there are other factors just as important. When your company decides it is time to search for commercial space, it can sometimes be difficult to decide between leasing and buying.

Each option has a list of pros and cons but the option that is best for your company is largely dependent on your company’s needs and expectations for the future. Over the long term, buying commercial real estate is typically more cost-effective. That said, each leasing also has its advantages and potential drawbacks that you will need to consider with respect to your financial and operational needs.

We at Stance CRE like to arm our clients with as much information as possible before they make their commercial real estate decisions. We know this city well and can guide you through the process from start to finish. So whether you need office, retail or warehouse space, we have compiled an overview of pros and cons of both leasing and buying your commercial space to aid you in the decision-making process.

Buying Commercial Real Estate

Buying commercial real estate gives you dependability and control. That is why investing in a commercial property is often advised for established companies looking to meet future, as well as current, space requirements.

However, the decision to invest in real estate comes with larger upfront costs, as well as additional legal, regulatory, and maintenance responsibilities. Carefully consider your business’s immediate and long-term goals.

Purchasing can help you to:

Potentially realize investment/capital gains as the property value appreciates
Avoid exposure to rising rental costs
Take advantage of tax deductions for commercial mortgage interest and annual depreciation
Tailor the property to your needs without landlord limitations
Sublet the property or some of its units for additional business income
Have more control over how the property is used

Pros of Buying

Building Equity: The good news is that, for the most part, property values appreciate. The longer you remain a property owner, the more money you make. If you decide to lease part of your property to other businesses, you can revise your lease terms and increase rents according to the lease agreement you have with the tenants. You can also decide to sell the building later and earn a profit to buy a new one at a better location.

Appreciating Asset: Owning commercial real estate allows you to benefit from capital appreciation — the increase in your property’s value over time. The rate of appreciation varies with the inflation rate, local supply and demand conditions, interest rates and other factors.

Rental Income: You can start earning rental income immediately when you become a commercial building owner. If you are not using all the space available, you can rent it out to other business owners and make extra income from the monthly rent payments.

Tax Breaks: You can deduct interest and depreciation on your commercial property as a tax break.

Control: When you own property, you have control over it (within the confines of zoning restrictions), which means you don’t have to negotiate with a landlord if you want to reconfigure the space. You’ll also make fixed monthly mortgage payments, instead of a rent payment that can be changed whenever a lease expires.

Cons of Buying

Upfront Spending: If you are buying an office or commercial building, you need first to make a down payment. Just like auto loans, these down payments usually range from 15%-30% of the building’s entire purchase price, especially if you want a loan to finance it. This money can be a lot for a small or growing business, making it almost impossible to own if your margins are thin. for owner-users they may qualify for an SBA loan and only need to put down 10%. For investment users, the down payment is typically closer to the 20%-35% range. If this applies to you, it is in your best interest to look into an SBA loan. These generally only require 10% of the purchase price as a down payment.

Liabilities: You are responsible if someone is hurt on your property, which means you’ll have to pay for a liability insurance policy to protect yourself from lawsuits. If you rent out part of the property, you are subject to property manager liability, which will require additional insurance and property upkeep. Furthermore, many loans may require a personal guarantee, which makes you personally liable to repay the loan if your business cannot.

Loss of Liquidity or Capital: You may be forced to use business capital to make a down payment for the building. Most business owners will take out a loan to finance the purchase. However, you may stretch yourself too much to meet these debt obligations, and this can impact your available credit when you go to purchase future items.

Leasing Commercial Real Estate

Commercial leases typically run from five to 10 years. You can use the property during the lease, subject to any restrictions built into the lease agreement. When there is low inventory, such as the market we are currently in, it can be challenging to find the perfect building to buy so leasing can be a good alternative for the short term.

Leasing can help you to:

Avoid tying up capital in a major asset, and keep lines of credit open
Fully deduct your business’s lease payments as a business expense
Expand and reduce the scale of your operations as necessary
Remove the common risks associated with property ownership
Relocate to a space that is a better fit (or better price) at the end of the lease term

Pros of Leasing

More Liquidity: Your business does not have to make a huge down payment when leasing. As a tenant, you only need to pay the agreed-upon rent and a refundable security deposit, and then move in. The monthly payments leave you with disposable income for business operations.

Tax Breaks: You may deduct these costs as incurred: Lease payments, property insurance, property taxes (depending on the lease type), utilities and maintenance. You can deduct your entire lease payment, in contrast to a mortgage’s interest-only deduction.

More Flexibility: Qualifying for a lease is typically easier than qualifying for a commercial real estate loan, so your options are greater in terms of choosing a space. You can also move when the lease is up without having to sell the property. You might be able to afford to lease a property that is too expensive to buy, which can help you get into a prime or strategic location.

Cons of Leasing

No Equity or Appreciation: You still will not qualify as an owner after many years of paying the monthly rent and renewing the lease agreement. Even if you pay as much money as the price of the building, you will move out one day and leave it behind along with your entire investment.

No Passive Income: You are not the landlord and thus cannot collect rent from others, losing secondary income you could gain from owning property.

Higher Monthly Payments: In the long run, rent payments are costly. You will find that in 10 or 20 years’ time, you have paid enough rent to own that building – but it still belongs to another person. In addition, at the end of the lease term, you will pay the wear and tear charges from your security rent deposit. Also, early termination is very costly and can eat into your profits.

No Control: The lease may have restrictions and even early termination clauses that hamstring the tenant’s ability to control the rental space. You have no control over rent hikes when the lease expires, and if you go out of business, you must continue paying rent or face penalties.

How Stance Commercial Real Estate Can Help You

At Stance Commercial Real Estate, we live and breathe Riverside culture. We are not only working in the community, we live here… we love it and we want to help you succeed in it!

Call us today at (909) 772-1212 and let us help you decide which type of role is best for you!

by Joe Stance

Blog

Understanding the Lease and Purchase Options

Advantages of Leasing Commercial Real Estate

Challenges When Leasing

Perks of Purchasing Commercial Real Estate

The Downside of Ownership

Riverside's Commercial Real Estate Outlook

Stance CRE: Your Guide to Commercial Real Estate

How Stance Commercial Real Estate Can Help You

The Core Participants in a Commercial Lease

Commercial Lease 101

Comparing Commercial and Residential Leases

Key Distinctions of Commercial Leases

Additional Stakeholders in the Lease Lifecycle

Potential Additional Roles

Influential Parties

Conclusion

How Stance Commercial Real Estate Can Support You

Money Management

Too Many Overheads

Lack of Time

Trouble Finding Good Employees

Customer Acquisition and Retention

Difficulties Balancing Growth and Quality

Ineffective Web Presence and Brand Awareness

How Stance CRE Can Help You

Why Partner with Local Businesses?

Partnerships Bring Brand Awareness to Both Businesses

Choose Businesses That Complement Yours

What Can You Do With Collaborators?

Event Collaboration

Social Collaboration

Merchandising Collaboration

How Stance CRE Can Help You

Local Jobs

More Money in the Local Economy

Increased Tax Base

Encourage Entrepreneurship

Community Identity

Product Diversity

Local Decision-Making and Involvement

Less Infrastructure and Low Maintenance

Better for the Environment

How Stance CRE Can Help You

Serve on a Board

Join Your Local Chamber of Commerce

Attend Other Local Business Group Meetings

Donate to Local Charities

Sponsor Local Events and Sports Teams

Volunteer Your Time

The Importance of Businesses Being Involved in Communities

Community Involvement Gives Back to the People Who Support You

Community Involvement Builds Strong Bonds

Community Involvement is Good for Business

Community Involvement Helps You Get the Best Hires and Retain Them

How Stance CRE Can Help You

What Is a Coworking Space?

The Rise of Coworking In Retail

The Benefits of Turning Your Storefront Into A Coworking Space

Coworking Model

What Are the Costs Involved in Opening a Coworking Space Business?

Who Is the Target Market?

How Does a Coworking Space Make Money?

Popular Revenue Streams

Membership Fees

Membership Packages

Renting Amenities and Equipment

Start a coworking space business by following these 10 steps:

How Stance CRE Can Help You

Getting Started

Space Options

Finalize Logistics

Before the Move

Maintain an Open Line of Communication

Moving Day

Set Up the Office

Test All Equipment

Clean Up

After the Move

Welcome Your Employees