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What You Need to Know About Commercial Real Estate: Lease or Purchase

Wake up, check emails, drive to a property to offer clients a tour, take a phone call while driving to a second tour— that’s a typical day in the life of Joe and Heidi Stance. The power couple are not only experts on commercial real estate, they are experts at putting their clients at ease.

Purchasing a property or leasing a building is a huge decision and one that impacts both the individual and the organization they represent. The Stances’ business model is centered around the golden rule: treat others as you want to be treated. With such high standards, Joe and Heidi are known for helping their clients find locations that best fit their needs both immediately and in the long run.

Commercial real estate covers a variety of industries. Medical professionals, retail businesses, non-profits organizations etc. all have one thing in common: they will have to consider purchasing or leasing a building or property at some point. Whatever your reason for needing a building or land, the first decision you will face is whether or not you should lease or purchase.

Is Purchasing Affordable?

Most individuals will look to leasing as their first option, but the Stance Team tries to keep both options on the table. Many clients may not even realize they are in a position to purchase right off the bat.

With Joe Stance’s in-depth knowledge of the Riverside area and surrounding cities, he can often find a property that fits a client’s needs and is available for a sale. SBA financing might put a client in the position to purchase a building for as low as 10% down. What clients may not realize is that purchasing can often be more affordable than a lease in the long run!

By purchasing property, the owner also gets the added benefit of having more control over how they manage their building and/or land. Other possible benefits of your commercial real estate purchase are potential tax breaks, building equity and boosting the value of your organization over time.

Utilizing Extra Space

Tenants can help cover the cost of a space. If you are purchasing a building or property, chances are you may have extra space you can lease out to tenants. Sometimes a quality tenant can actually help cover the costs of the purchase.

Take for example a Stance Commercial Real Estate client who was looking for a large building for their organization to grow into. At first, the client assumed leasing would be the only affordable option. Not only did Joe Stance find a building that had plenty of space and was for sale at a reasonable price, but the building also came with short-term tenants whose monthly lease covered the cost of the building’s overall mortgage. The building practically paid for itself!

Commercial Real Estate Lease Options

If a client isn’t in a position to purchase or if they simply prefer not to, the Stance Team will look at the entire market for the perfect commercial real estate property to lease.

While purchasing can often be more affordable in the long run, sometimes leasing a building or land is still the better option. A purchasing deposit, paid up front, may be out of budget for certain organizations. There are also risks involved with purchasing that may not necessarily come with leasing. With a lease, you aren’t liable for nearly as much as you would be as the sole owner of a property.

Leasing with an option to buy can also be a great approach. Clients may lease a building until the building or property owner is ready to sell. This takes away the pressures of immediate purchase, while assuring there will eventually be the option of ownership.

At the end of the day there is no one-fits-all solution. That’s why having a commercial real estate broker you can trust, is a must. Joe and Heidi Stance strive to always be available, are fast and responsive, and they just simply love to help people bring their visions to life. Stance Commercial Real Estate is all about service, so whether you are purchasing property or leasing a building, Team Stance has your best interest in mind.

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Have questions? Call Joe at (909) 772-1212 for a free consultation, or contact us for more information. Ready to see what’s on the market? Browse our list of available properties.

by jstewart

What you Need to Know about Commercial Real Estate: An Introduction

Finding the right commercial real estate (CRE) property can be a daunting task. There is a lot to consider during your search for the right location, which is why we’ve put together a commercial real estate blog series to help you make the right choice. This article will be an overview of how to get started on your CRE journey and helpful commercial real estate information to consider.

The first step on your journey is to decide if you want to lease or purchase. There are benefits to both, but ultimately it comes down to what you prefer or can afford. Oftentimes, purchasing ends up being less costly than a lease. If you are unsure of which option is best for you, call us anytime to schedule a call and go over your options at no cost.

Before searching for property, consider how much square footage you need or how many parking spaces you want. Also know if you need a building, additional land, and what demographic you want surrounding your location. Do you prefer a ground level space? Will a building located in a shopping center benefit your organization? Different industries and individuals will have different needs and preferences. Start by picturing your ideal space and location, then go from there. 

In this blog series we will cover popular industries seeking commercial real estate information, and hot topics such as SBA financing, CPAs and investing. We will also go over other services to consider when making your decision. You may need information on moving companies, inspection services or an attorney. In this commercial real estate blog series we will dive deeper into each topic so you have all of the tools you need to move forward. 

We will elaborate on the discussion of landlords and finding an insurance agent. We will also go over finding tenants if you are a landlord. Oftentimes landlords need to sublease or find new tenants in a short amount of time. We also will go over what to expect from your landlord if you’re a tenant. A lot of tenants don’t know what kind of zoning they need or how to find a trustworthy landlord. 

Our commercial real estate blog series will cover as much of the basics as we can to help your lease or purchase go as smoothly as possible. Ready to get started on your journey now? Contact our team today to hear what else you need to know about commercial real estate. 

by jstewart

Taking Care Of Business: A Look At New Businesses Coming To Riverside

We grew up in Riverside. We love the city and we want to see it thrive and grow. What better place to be than on the forefront of that growth with commercial real estate? We have been blessed to be able to bring in new businesses and new ideas to this city which we admire so much.

Why do we love Riverside? The area we serve is unique in that Riverside has all the benefits and opportunities of a larger city,while maintaining the kind of community one would find in a smaller town. Riverside boasts affordable housing, is known for its arts and innovation, and it is a great location close to both the mountains and the beach. The entire Inland Empire is an up-and-coming hub for new businesses and passionate entrepreneurs.

We want to continue to see it grow and for those local business owners to thrive. We work hard to bring great business owners to Riverside. Our clients are all like-minded individuals who want to see the city succeed as much as we do. Any city is basically what you make it. Your investment into the city is what it will give back to you. That’s why at Stance Commercial Real Estate we have dedicated our time to serving our city and community.

The Place To Be

There are many reasons for new businesses to start here. For manufacturers, Riverside is on its own power grid, so their power savings can be tremendous. The cost of living is also more affordable, which means business owners and operators can live and work in the same city, eliminating exhausting commutes. With new residential development going on, it’s no secret that the city is booming.

Riverside also has unique demographics that opens new business opportunities. The city is known for its city college as well as three major universities. With such a large student and young adult population, there is always a demand for new restaurants, places of entertainment, retail stores and more. College students not only make great interns, but also broader the labor pool for owners and managers to hire from. Downtown Riverside has been creating businesses that cater to a younger population, which in turn has kept money circulating within the local economy. We’d like to see more of that.

How We Are Giving Back

With commercial real estate, we get to partner with the best businesses and help them get started. We are being strategic as a commercial real estate company to bring in good and profitable businesses that want to be here. We love partnering with clients who share our passion for the city and want to be a part of this community. On numerous occasions we have also found like-minded clients in neighboring cities and brought them to Riverside to expand. Most of our listings are here in Riverside, but we get calls from new businesses everywhere around the world. The first question we always ask is, how can we bring them to Riverside?

One of our clients, KGEL Steel Inc., is a prime example of how we bring great companies to this city. Originally we put them in a building in Colton as a start up three years ago, and during that three year time, their business expanded. They were suddenly in a position to double their size, as well as in a position to purchase. We not only helped them find the perfect location to purchase in Riverside, we also helped them sublease the Colton location which saved them hundreds of thousands of dollars. Additionally, by owning a location in Riverside, they are paying less for power, which is a major plus. We are expecting KGEL to double again within the next three years, and we will maintain a relationship and will be there to help the moment they are ready.

Following The Opportunity

Now is the time to jump in and establish a business in Riverside. Organizations from other cities and states are already seizing the opportunity. Staffing companies are coming to Riverside for the large labor pool. Entrepreneurs are starting new companies that cater to the city’s unique and diverse demographic. Riverside, the city of arts and innovation, just has more to offer than most people know, and we are the ones to talk to.

We will never push our clients into something they don’t want, but we truly believe that the cost of doing and starting a business is better in Riverside, which means business owners can take more risks and grow. Knowing all the options is key. Not all brokerages offer those options or even know all of them. Stance Commercial Real Estate will show everything that is on the market as well as opportunities only we know about, because we want new businesses to find the best option for their company.

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Call today for a free consultation, we’d love to meet you!

by jstewart

Small Business Help During Tough Times

As small business owners ourselves, we are impacted by the pandemic of 2020. However, as a Commercial Real Estate brokerage we find ourselves in a fortunate position to be able to offer help for small businesses during this time. While many small businesses are struggling, we have to think positively and see this as an opportunity to be creative, innovative, and fight to move forward. I feel like it is more important than ever to work with a local commercial real estate brokerage like ourselves to look at solutions and make the necessary adjustments to help your small business thrive. 

Here are some solutions to consider:  

• Review lease options 
• Expand or downsize your space 
• Assess the current market value of your property
• Look at practical strategies for your business as a whole

Review Lease Options

Tenants may be looking to reduce their rent during this time, or to modify their lease. While the details of a lease are ultimately between a landlord and their tenant, we can offer knowledge and insight that may be helpful when reviewing your options. 

Rather than breaking a lease entirely, we can help both tenants and landlords by discussing the possibility of a sublease or lease assignment. With a lease assignment we can assist by finding new tenants to adopt the current lease. With our vast network of connections, we are guaranteed to find reliable tenants.  At Stance Commercial Real Estate, we look at all your options and provide the information needed to make the best decisions.

Expand or Downsize Your Space 

If you need to downsize or expand your space we can help with the process.  Many companies will need to make a decision in 2020 to downsize or expand for operational reasons. Yes, some industries are expanding, like shipping companies, home delivery, online marketing, and medical—just to name a few. For these types of companies, Stance Commercial Real Estate is in a position to help these small businesses find the perfect building. For the companies who need to make the tough decision to downsize, we are here for them too. Our stellar reputation among brokers, building owners, and government officials often give us and our clients a first opportunity on properties that come to market. We can guarantee we will find you exactly the kind of property you want, if you need to downsize. 

Assess Current Market Value 

We can give building owners a current market value of property. Having exclusively practiced commercial real estate in Riverside for 14 years, our team has either leased, sold, or toured nearly every building in the area. This not only saves you valuable time when looking for a property, it also means we know exactly what your property is worth.  If you are in a position to sell, we have a vast local network of industries who help commercial real estate owners. We utilize this network to help the clients we represent. You will get what your property is worth and without hassle. 

Look At Practical Strategies For Your Business 

Using our large network of connections, we can provide help for small businesses as a whole. As a company who believes in serving others, we see this time as an opportunity to take a Stance for service. We can help you discover the next steps needed to keep your business thriving using practical commercial real estate strategies.

I am often surprised when tenants looking to lease don’t know they are in position to purchase. If you are a company who needs to operate out of a building, you have to put yourself in a position to own. With interest rates at historic lows, companies often have a lower monthly mortgage payment than the monthly lease payment.  As a property owner you have more control over your destiny and have financial benefits as well. Companies who own their property are able to lease back from themselves. This means you can write off your lease payment during tax season to save thousands. Companies who qualify for a SBA loan only have to put down 10% on a purchase. This is typically what you would pay over a one-year term on a lease or less. Once you are ready to move out of the building, we can help lease it out or sell it. If you decide to sell it, you can utilize a 1031 tax-deferred exchange. This allows you to take the money you have earned in equity to buy another building for your company. I am surprised that building owners don’t always know these strategies.   

We love our city and want to see other small businesses like us continue to stay in business. We are here to serve you. The possibilities are endless! Don’t hesitate to reach out and get a free consultation at (909) 772-1212 or send an email to joe@stancerealestate.com.

Best, 

Joe 

by jstewart