Lead-based paint was used in many homes and apartment units in the U.S. until it was found to have adverse effects on human health, particularly on the health of children. To reduce exposure to lead-based paint hazards, Congress enacted the Residential Lead-Based Paint Hazard Reduction Act in 1992, Title X.
This law requires sellers to disclose the existence of any known lead-based paint in pre-1978 residential properties, and to disclose the results of any previous testing for lead-based paint. As a result, Title X created additional responsibilities for real estate agents and brokers and property managers in sales and lease transactions by requiring them to facilitate disclosure of this information and to ensure the buyer receives and reviews the relevant information on lead-based paint hazards.
The EPA has taken a step further and its most recent rule addresses lead hazards in remodeling and renovation projects. To reduce exposure to lead-based paint hazards during renovation activities, EPA is requiring additional notification and work safety procedures before, during, and after any remodeling or renovation activity. These new rules will particularly impact commercial and residential property management activities.
Under a settlement agreement between the EPA and various public interest groups, the EPA is required to develop regulations that establish lead safe work practices for renovation, repair and painting (RRP) activities for commercial and public buildings.
Under the original agreement, a proposed RRP rule for the exterior of commercial and public buildings was due on Dec. 15, 2011. This date has been pushed back twice so far, most recently to Sept. 15, 2012. A final rule is due on July 15, 2013, although the delays in issuing the proposed rule will no doubt delay promulgation of the final rule. (Source: NAR e-newsletter dated July 26, 2012)
The CCIM Institute published a good article titled “Small(er) Markets, Big Opportunities | CCIM Institute” that talks about how investors are moving away from core markets to capitalize on properties in the secondary and tiertary markets.
Investment property sales have been historically limited in Lincoln due to a high amount of local ownership and owners focusing on long-term investment strategies rather than thinking about a hold period. However, in 2011, the Lincoln market experienced an increase in out-of-state private investment with several significant office sales occurring that reached more than $16 million in transaction volume. A significant sale for the city was the Federal Trust Building, a 12-story downtown office building that sold for $5.775 million or $92 per square-foot. Lincoln’s largest transaction was the sale of the three former TierOne Bank buildings and a 265-stall parking garage to Woodbury Strategic Partners at a price of $9.3 million. Both properties were bought by out-of-state investors with the intent of long-term ownership. Lincoln’s stable economy and the construction boom from university and government-driven projects has provided added incentive for investors to consider our tertiary market.
NAI FMA Realty works with institutions, private investors, entrepreneurs and lenders seeking to maximize their real estate position and portfolio strategy on properties ranging from portfolios of owned real estate, to single-tenant net leases, multi-family properties, and corporate headquarters. If you are considering investing in the Lincoln market, contact our investment brokers to gain a thorough understanding of your investment critera and assist you in the planning and due diligence of a transaction.
For more information, contact Richard Meginnis, Tom Graf or Chris Vasek at 402-441-5800.
77 Acres of residential zoned ground is available for sale at 35th & Superior. 21.9 Acres has been elevated out of the floodway and now ready for development. Ideal setting for a residential development or corporate campus with zoning change. View details of the property or contact John Hyland or Richard Meginnis at 402-441-5800 for futher information.
Capitalization rates averaged 7.22 percent in the second quarter, or 4.29 percentage points higher than the yield on 10-year government bonds. Read more..
(Source: REALTOR® Magazine-Daily News)
Lawrence Yun, chief economist for the National Realtor Association believes the commercial real estate market will not see a recovery until 2011. He stated the job market is expected to grow later this year and with that the demand for office and warehouse space will improve. Furthermore, as consumer confidence increases so will the demand for retail space. To read the article in full – No Real Commercial Recovery Before 2011.
Dell, Inc. plans to buy Perot Systems Corp. as it tries to expand beyond its PC business and compete against Hewlett-Packard Co.
Locally, Perot Systems is consolidating offices to a new 150,000 square foot office complex in northwest Lincoln, in the University of Nebraska Technology Park. This new facility is being developed by KDC and will be one of Perot Systems’ largest U.S. employment locations (October 21, 2008 Perot Systems Corp Press Release). Estimated occupancy date is in October 2009.
Commercial real estate prices fell 5.1 percent from June to July according to Moody’s/REAL Commercial Property Price Indices. Read more…REALTOR® Magazine-Daily News-Commercial Prices Continue to Drop
NAI FMA Realty is licensed for the state of Nebraska and can help you with any commercial real estate property throughout the state but through our affiliation with the NAI Global network, we can assist you with property all over the world. Where can we help you next?
Are you looking to relocate, consolidate, sublease, acquire new space or dispose of excess space? For most companies this is not an every day occurrence but a task possibly every 3 to 5 years or more. But before beginning this process, ask you yourself if you have the time and expertise to research the market of available opportunities? Do you know the market leasing rates and incentives being offered today? Do you have the time and expertise to negotiate with landlords while handling all of your other job responsibilities? If you answered no to any of these questions, then consider engaging a tenant representative to work on your behalf.
The leasing process is generally a complex, time-consuming task and full of potential problems. Hiring a good tenant representative can eliminate many of the hassles, save you a substantial amount of time and generate cost savings.
What are some of the benefits to using a tenant rep?
- Acts as your guide through the leasing process
- Analyzes your space needs to avoid leasing too much or too little space
- Shares their knowledge of asking rates and incentives available in the market
- Assists in negotiations to obtain terms that meet present and future needs of your business and avoids critical mistakes
- Serves as a buffer between you and the landlord to keep your relationship with the landlord cordial
- Handles the paperwork necessary to complete the transaction and other details of lease negotiation
Your primary business is running your company. Allow a tenant rep to help you find the right space with the best possible terms and conditions and save you time and money. Call today for a free copy of an Office Space Planning Checklist.