#CRE

May 27, 2022
2 min

Figure It Out

I was lucky to find a great mentor who encouraged me to get into the commercial real estate business. No doubt my career would look very different if I hadn’t met John Allen of Industrial Equities. He provided me guidance, whether it was sharing insight, asking the right questions, or simply giving me the space to figure things out on my own. As long as I made more good decisions than bad and learned from those bad decisions, we were good. This gave me confidence and allowed

Jeff@CEGspaces

May 13, 2022
2 min

Multiple Offers, Right Deal

It’s a seller’s market, especially when it comes to industrial properties. Currently, I’m representing clients that have multiple offers on their properties. It’s a lot to sort through, and every broker wants to help the seller pick the best one. So, how do you get the right deal under contract? How do you find the deal where the stars align? Although a seller’s priority is to make the most money possible, sometimes the highest offer isn’t always the best. Here are five addit

Jeff@CEGspaces

Apr 29, 2022
3 min

Just Write It

I had a conversation with a small group after my BNI meeting Wednesday that I thought I’d use as this week’s blog topic. When one of my business mentors first suggested I start a blog, I was very hesitant. Honestly, I was a little fearful of people’s reactions., specifically my fellow colleagues. But after some thought, I came around to it as I decided it was more important for me to do it, than not. I needed to put myself out there and let the words flow, so we launched the

Jeff@CEGspaces

Apr 15, 2022
3 min

We Know…What?!

Years ago, a buddy of mine sent me of a photo of an astronaut on the moon, a bottle in hand, kicking back with his feet on a cooler, and the Earth on the horizon. He suggested I use it for marketing, and the taglines “Jeff knows space” and “We know space" followed. If you’ve ever looked up space in the dictionary, you will notice there are many definitions. After reading them all, here are five that show how CEG knows and uses “space.” 1. “An area of business in which a

Jeff@CEGspaces

Apr 1, 2022
3 min

What It Takes

Commercial Equities Group is hiring an associate (or aspiring) broker. When making the decision to bring on another team member, I reflected on my start in commercial real estate. I hustled! I learned every aspect of the business. I was the plow guy, the demo guy, and often swept properties during the evenings for the final move in. Each step taught me something, and I now – with much delayed gratitude – I reap the benefits as a broker that owns my own business. CRE is a cha

Jeff@CEGspaces

Mar 18, 2022
3 min

Chain Saws, Machines, & Spring

Sunday is the first day of spring, and I’m ready. Spring offers a chance to look at our surroundings with a fresh eye. I know we probably haven’t seen our last snow – we live in Minnesota after all. But it’s the time to look at your property with a critical eye. Does it make a good first impression? Properties that look attractive from the street can greatly increase their value, both the market price and how people perceive the businesses and property management. To make the

Do the Numbers Make Sense to Take the Jump? 🪂

Jeff@CEGspaces

Mar 11, 2022
2 min

Do the Numbers Make Sense to Take the Jump? 🪂

Is it the right deal for you? The first step in deciding on a CRE investment property is to compare what it offers to your strategies. Are you focusing on quick cash flow or looking long-term to build wealth? Does the property fit? One way to see if a property aligns with your strategies is to look at the numbers. When an investor calls a deal “good”, they usually mean the property will generate a strong return. Net operating income (NOI) helps determine cash-on-cash return,

Jeff@CEGspaces

Mar 4, 2022
2 min

Those Day-to-Day Costs

A building needs to be maintained, insured, and compliant, and that costs money. Those short-term expenses, like common maintenance fees, insurance coverage, and property taxes, are required to “run” the building. Operating expenses – also known as additional rent and CAM (common area maintenance) – are normal parts of doing business. They affect the costs for the tenant and the net operating income (NOI) for the landlord. However, each party views the costs from a different

Jeff@CEGspaces

Feb 25, 2022
2 min

Givers Gain and Gainers Give

“New collaborations and partnerships fuel business and innovation, and that’s a plus. Giving back, helping someone out, and contributing to our community is rewarding and satisfying. It’s true that givers gain.” I wrote this in my fifth blog, Reflections on Networking. As I was driving to a showing earlier this week, I began to think again about the convergence of contributing to our community and the benefits of networking. I believe the value of both increases when the two

Jeff@CEGspaces

Feb 18, 2022
3 min

Real Talk

The market is hot, and properties are moving fast. Although not impossible, finding a building for sale that matches a buyer’s needs is much more difficult than it used to be. Finding the right lease opportunity is also tough. Because spaces are harder to find––especially smaller offices and industrial properties–– landlords and owners are looking for high credit tenants and buyers. It’s important to know that your actions or inaction can make or break a deal for a seller or

Jeff@CEGspaces

Feb 11, 2022
3 min

Drive-In Door on the 4th Floor? 🤔

How we shop, where we work, what we value, and what we do during our free time have all come into play over the last two years. These trends have left some office buildings, big box stores, and shopping centers empty, but increased the need for industrial properties. All those shipping boxes and home deliveries are packaged somewhere! So, how do we repurpose existing structures to meet the needs of the market? If only we could put drive-in doors or docks to access the fourth

What Being in the Army Airborne Taught Me About CRE

Jeff@CEGspaces

Feb 4, 2022
3 min

What Being in the Army Airborne Taught Me About CRE

In my “Help! We All Need Somebody” blog, I referenced how a conversation with John Allen impacted my decision to become a broker. My experiences working with John – as well as my paper route as a boy to my service in the US military as a young adult – have all impacted how I approach being a broker. In 1986, I joined the US Army and became an Airborne rigger right out of high school. Those three years really changed how I see the world. Based primarily in Germany, I met and w

Jeff@CEGspaces

Jan 28, 2022
2 min

Money on My Mind 🎶🎧

When it comes to CRE financing, not all banks are the same. The lender you choose becomes a partner to help reach your goals, so the right choice is important. The market is tight, but opportunities are out there. To not miss out, you’ll want to develop that financial partnership early. A CRE loan is used to purchase, refinance and/or renovate a commercial property. A business owner needs to find a lender that serves their loan purpose and offers rates and terms that match th

Jeff@CEGspaces

Jan 21, 2022
2 min

I Quit

Let’s say, you’re a small industrial business looking for a space. You want a new building with a specific square footage and all the modern amenities. Well, it’s time to quit that thinking. It used to be that Minneapolis-St. Paul had plenty of industrial sites and new construction suited for small businesses and start-ups. Not so anymore. Competition is fierce in the 3,000-30,000 SF range. Current construction leans to much larger structures, and smaller buildings are being

Jeff@CEGspaces

Jan 14, 2022
2 min

Help! We All Need Somebody

In the early 1990’s, John Allen (Industrial Equities) asked me a question that changed the trajectory of my life. While grilling fish and drinking G&Ts, he said, “What are you going to college for?” I was thinking about a career path that I was familiar with and would help people. It was not in CRE. However, because of the conversation that followed, I chose to be a broker. It was, and still is, the perfect fit. I didn’t know, what I didn’t know. We all need help at some poin

Contacting Brokers in 2022’s Fast-Moving Market

Jeff@CEGspaces

Jan 7, 2022
2 min

Contacting Brokers in 2022’s Fast-Moving Market

We are in some crazy times. Great properties are moving fast, and a successful broker must be a fantastic juggler. Brokers work in a relationship-industry, as we set up deals between people. That means, we might get hundreds of calls or messages a day. So, how do you ensure your call, text, DM, or email gets noticed when things are moving fast? Here are my five tips to make sure you get a response and beat the pack to get your deal done. 1. If calling, leave a voicemail. W

Jeff@CEGspaces

Dec 17, 2021
3 min

Due Diligence in CRE

The due diligence period is critical for a successful CRE investment. After signing a purchase or sale contract, it’s your responsibility as a buyer to inspect, explore and analyze. Correctly done, this important step can mean you either make money or lose it. Reviewing information can confirm the original terms of the deal or provide leverage to renegotiate. Either way, it’s essential for proper decision-making. The following four types of due diligence can help ensure the p

Jeff@CEGspaces

Dec 10, 2021
3 min

LOCATION Matters!

When a business is looking for a site, location is key. Zoning, title, environmental factors, and geographic areas are all critical and concrete factors that come into play. Buyers and lessees must understand the exact uses and restrictions assigned to the property. Local authorities segment land into zoning districts that define what can be built, how buildings are used, and how they relate to other buildings. If the property zoning fits and there are no issues with the titl

Jeff@CEGspaces

Dec 3, 2021
3 min

Commercial Zoning

Commercial zoning can be complex or straightforward. In many markets, finding the correct zoning for your use is becoming more and more challenging. It all depends on the local authorities who segmented the land in accordance with federal, state, and local ordinances, regulations, and laws. Zoning defines what structures can be built, how they are used, and how they relate to other properties. Most often they include the following: Commercial property types Allowed commercial

Jeff@CEGspaces

Nov 19, 2021
2 min

Appreciate Depreciation in CRE

In commercial real estate investing, the benefit of appreciation is obvious to beginning and experienced investors. In general terms, it's an increase in the value of an asset over time. We can all get on board with watching assets grow in value, preferably ahead of inflation. However, depreciation is not so obvious and often underrated. It’s an accounting method that tracks the physical or tangible asset over its useful life. Depreciation is about how an asset is used, and y

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