Profitability

Commercial Lease Total Rent Exposure Part 4

Commercial Lease Total Rent Exposure Part 4 By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 In our last video, we discussed how parking space and after-hours HVAC impact your effective rent. Let’s now look at more factors affecting your total occupancy cost. My team works hard with the tenant to get the most concessions. These are items deducted from the total occupancy costs over time to establish an effective rent. Examples include beneficial occupancy, free rent, free parking, tenant improvements, and moving allowances. https://youtu.be/tC09k8mIV8E If...

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Commercial Lease Total Rent Exposure Part 3

Commercial Lease Total Rent Exposure Part 3 By Forrest Blake, Senior Vice President of SVN Commercial - Phone 310-850-2381 - CalBRE Lic # 01054174 Decision makers must have a clear picture of the total occupancy cost to eliminate surprises and to maintain cash flow and profitability. An accurate budget with both variable and fixed expenses will help the team make the right decision between staying in the current building or relocating. In our last video, we focused on the impact of property tax increases on your total occupancy cost or effective rent. Let’s now look at parking space...

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COMMERCIAL REAL ESTATE LIABILITY & RESPONSIBILITY

COMMERCIAL REAL ESTATE LIABILITY & RESPONSIBILITY If your enterprise is like most companies, your commercial office rent plays a role as the second largest business expense to the company, which directly affects your bottom-line.  As the CEO of GolfTEC Southern California, back in the earl 2000’s, I experienced this exposure personally with a $70,000-monthly-base rent expense spread over the fifteen leased locations. Note: I am not counting other triple net expenses in this amount; just base rent alone. As you may know, paying large rents can be very painful. And, often untimely when...

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Commercial Office Space Creates Profits

By: Forrest Blake Over two decades I have made representing tenants in commercial real estate a major part of my professional life. I have always questioned the standard method of measuring the success of a commercial office lease transaction based on the rate-per-square-foot. If this was an accurate measurement, then all my professional service clients should have leased warehouse space in Commerce, CA at only $0.45 per square foot. Their rents would be cut by 75%, but likely the same percentage of staff would quit because of the poor working conditions. Yes, I am giving a dramatic example...

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Speaking on People Equals Profits

Engage Forrest Blake to Speak on, "People Equals Profits" The people you employee and manage are central to a successful business. Hiring, retaining and maximizing productivity must be at the center of any business strategy.  Company growth in the new economy will include baby boomers late in their career and echo boomers looking for alternative workplace strategies.  Getting the most out of these very diverse groups takes a substantial amount of creativity and tenacity. Over the past 7 years I owned and ran GolfTEC improvement centers in Sothern California. Prior to selling the company...

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Engage Forrest Blake, “The Business Golf Expert”

...to speak to your company, your clients, your fund raising dinner, your civic organization, your executive club or other organization. Forrest Blake’s passion is for helping business executives discover how to drive business development, employee recruitment and personnel retention using golf. Blake wants to pass along what he learned successfully closed hundreds of millions of dollars of commercial real estate deals on the golf course during the 16 years that he was one of Los Angeles’ most successful brokers. His clients included Warner Brothers, Blue Shield and oil giant Texaco. Blake...

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Sky Golf Profitable in the Great Recession

By Forrest Blake The owner of 12 GolfTEC Centers here in Sothern California, Sky Golf LLC, has great news on their continuing success of its business.  The fiscal year end was August 31st and we are happy to report an increase in EBIDAT of 62%. During one of the most difficult times for discretionary retail in the US we have now posted two years of in a row of profitability. The expectations this year is to increase another $200,000 and begin to drive towards our goal of a million in EBIDAT. Gross Same Store Sales revenue increased over 20% in 2011 which is in addition to 27% increase posted...

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