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)

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.

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.

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.