In the last blog “Modern Updates Attracts Younger Generations” we discussed that the owners of office buildings should take a serious look at the exterior of their buildings and consider updating and upgrading the appearance of their buildings to bring them into a new era of office building design with an accent on the good and replacing or redesigning the bad and the ugly. That was outside. Now, let us go inside.
(Aldi's Edmond location on West Edmond Road)
The winds of change are blowing into the Oklahoma City grocery market in the form of discount retailers Winco, Aldi and Save A Lot. Winco is a major warehouse-type grocer new to Oklahoma with a 90,000 sq ft footprint. They have identified four locations in the Oklahoma City metro area and are under construction with three of those stores now. Aldi and Save-A-Lot are both small neighborhood deep-discounters with a limited assortment of items targeting thrifty shoppers, and both are adding locations to their store count.
Of all the expenses to consider in running your new business, rent is one of the largest. In commercial leasing, "Base Rent" is generally marketed on a per square foot, annualized basis. However, one feature to be cognizant of is rent escalation based on the Landlord operational cost increases or the dreaded “Additional Rent”. Landlords want protection from uncontrolled cost increases that affect their return. So, they will bill back to all tenants a pro-rata share of the operational cost increases.
As our "Price Edwards Client Profile Series" continues, we look at a sit down with Darin Miller, CEO of Miller Architects Inc. Mr. Miller and his company are involved in the operations of St. Anthony's newest healthplexes across the Oklahoma City metropolitan area. The newest locations are in Midwest City, Mustang, North Oklahoma City, and South Oklahoma City. The four properties were the first Freestanding Emergency Facilities in the state of Oklahoma and continue to serve thousands in the community every month.
Many small businesses have trouble deciding whether to lease or buy commercial real estate. While financial aspects play a major role in this decision, money is not the only factor--there are pros and cons for both sides. Keep in mind that there are many intangibles not mentioned here and your real estate professional, accountant, banker and tax specialist are all resources to help you make the best decision for your business.
When looking at leasing space consider these points:
OKLAHOMA CITY - APRIL 6, 2017 - Price Edwards & Company has been selected by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces, to receive a CoStar Power Broker TM Award. This annual award recognizes the “best of the best” in commercial real estate brokerage by highlighting the firms and individual brokers who closed the highest transaction volumes in commercial property sales or leases in 2016 within their respective markets.
Since the founding of our company in 1988, we have always valued our client relationships. We believe that developing and maintaining relationships with our clients will always lead us to become more successful as a company. One of those relationships is with Bill Hedrick of Rebel Oil. Mr. Hedrick and the Lee family has entrusted Price Edwards & Company with the management of their investments since 2010.