Buying Commercial Real Estate – Case Responsible
Posted on 24. Jan, 2010 by kingreal in general
Currently, the market has a large number of proposals for the sale of industrial bases, offices, warehouses, buildings, non-residential premises and so on. Commercial real estate may be subject to any prescribed or at least not prohibited by law transactions.
Given the great economic significance of the property objects is clear the importance of compliance with certain procedures in the sale of commercial real estate lease. Property subject to economic and legal risks that must be carefully evaluated.
The first buyer, to compile a list of documents required for the provision and a list of questions requiring answers. A seller of real property necessary to seek not only legally but also the technical documentation to the facility.
Always important legal history of the facility, which can be quite complicated and fraught with potential conflict situations, out of which could mean additional costs to the buyer. In practice not uncommon situation where the innocent purchaser of property is mired in a protracted and costly conflict, bought it inherited from the not too honest seller. In particular, it deals with administrative issues or possible conflicts with the owners or tenants of neighboring objects. The legal status of neighboring target sites and buildings can also significantly affect the ability of its use.
After studying the legal documentation and receipt from the seller’s answers to questions regarding the legal history of real estate, should move to the dissemination of technical documentation.
Depending on the object and its destination, the legal and technical information that will need to be explored will be different.
Professional analysis of documents could eliminate or significantly reduce the risks of them.
The next step is to compile, negotiated and concluded a contract of sale of real estate.
In the sales contract must be specifically identified parties to the transaction and the essential conditions set by law for the sale of real estate.
In the preamble of the treaty should be to identify the parties to the contract.
The contract specifies the location of the property: name, address, location of the facility, the appointment; area, floors and other necessary parameters to define clearly the subject of the contract.
Another important provision of civil law is an indication that the contract of sale of real estate should include the price of the property.
In the absence of a treaty agreed by the parties in writing the terms of the contract price of real estate on its sale is considered nezaklyuchennym, as indicated by paragraph 1 of article 555 Civil Code.
The price of real estate is strictly a specific individual and may not be comparable to similar types of real estate, with signing a contract of sale of such property can not apply paragraph 3 of Article 424 Civil Code, allowing prices in the absence of a reimbursable contract to apply price which, in comparable circumstances is usually charged for similar goods.
You may also want to record in detail in the contract payments and transfer of immovable property.
Contract sale of real estate is concluded since it was signed by the parties.
The conclusion of a contract for the sale of real estate and entry into force making it compulsory for the seller and buyer, but not for third parties. It is the time of the contract and to the state registration, the buyer has the right to require the seller to his execution, that is transfer it to sell the property.
The final step in the purchase of commercial real estate agent is the Registration of transfer of property to the buyer.
Trends and Problems of Commercial Real Estate Market Canada
Posted on 21. Jan, 2010 by kingreal in general
One of the most pressing issues for the market, of course, are the prices. According to the organizer of the roundtable, the company Business Analyst Group average sale price for April was: office – 39 000 euro / sq.m. Trade – 38 000 euro / sq.m. industrial – 9 000 euro / sq.m. the average rental rate offered on the open market in April was: office – 747 euro / sqm / month. Trade – 1218 euro / sqm / month. industrial – 158 euro / sqm / month. In 2006, in the Canada was put into operation 24 000 sq.m. space in the new shopping and leisure centers. In 2007 he had already put 30 000 sq. m., until the end of 2007 plans to introduce a further 70 000 – 80 000 sq.m. trade area as a shopping and entertainment center. In addition, over the next 3 years plans to build about 10 business centers and the same number of shopping centers. The rates of rent in the new sites is constantly increasing, the maximum rate for April 2007 reached 4500 euro / sqm / month. for commercial space and 1,770 euro / sqm / month. for the office. Cost of sales 1 sq. m. in certain categories of commercial property increased over the year in 2-2,5 times, for example, industrial warehouses and administrative buildings. Even in Moscow company today said that the market is overheating with us, the stakes are too high, the rent for our region is too high, and the purchasing power and throughput is still not at the level of major Russian cities. This reduces the attractiveness of shopping centers in the eyes of tenants – the start of discussions on Irina Fedchenko, director of consulting company Business Analyst Group, – for example, is very telling recent example of the opening TRK Greenwich for non-tenant commercial areas. In the past, the city of rumor, that the lease rates on commercial real estate collapse. And whoever invests in real estate, is now limbo: either invest or not. The timing of construction of new facilities or renovation of old protracted. The banks and leasing companies that lend to these deals, too, wonder: Does the alleged pay off dates announced for the construction projects. How long can increase rents and sale prices for commercial real estate in Canada? . Agreed that the stakes really high, and Alexander Filatov, director of the Canada branch of the company AlyansRegionLizing, explaining it immaturity, youth of the market started its development in 2004 alone, and formed a deficit of commercial real estate. Investments in commercial real estate lease at this stage has its own risk, but, in the view of Alexander, such a fall in prices, to talk about the risks of non-means, in the next two years will not be. Companies seeking to regain its image, which is characterized, above all, the notion of ownership. Sitting in his room or rent the space to sit in a good business center, or to withdraw somewhere in the suburbs – this is a meaningful indicator for business. Therefore, price increases will continue, perhaps with a little break, but in the coming 2007-2008, prices will rise. We discussed some of our business partners to back leasing transactions when they rent their premises for rent. They form the most growth of 5-10%. This projection raise rental rates for next year . Paul Vysotsky, director of OOO KLP-Invest, also predicts a rise in the prices of 10% in the segment of office real estate, which is positioned at the level of class V. In this format, no problems with the rental of commercial real estate there, and I think that will never, as well as benchmark average, – said Paul. According to Paul Seliverstov, head of the department for the management of commercial real estate company Kora-TK: Entering the new facilities on the market today is not much obrushit market prices prevailing at the date. If a shopping center will focus not on the market, but at prices that would like to see the investor, then yes, the problem may be, as in Greenwich. If the price will be set market, the commissioning of new facilities are not heavily affect the market, and napolnyaemostyu tenants will be all right According to Paul, in the near future even happen growth of the best sites. And this is related to entering federal players, and Moscow’s foreign trade companies. At the same time, graduation will be held at the premises of category A, A +, B, C and so forth, as in large cities. Prices for rooms with a good location to grow. The cost to other falls. A similar opinion Natalia Korchuganova, Director Panacea, considers that the average rental rates for retail space down to 30% that is due to the fact that increases the number of shopping centers: Those facilities that will be introduced in this and the next two or three years, will be in demand and will find its customers, for rental rates and investment. However, already changing the requirements for office and retail space, the entrepreneurs want to Superior, more interesting environment. Here’s this new sites to developers, investors and worth paying attention . The need for careful consideration of projects and said the team leader of investment operations branch VTB in Novosibirsk, Sergey Zemtsov and expressed confidence that everything will be fine and that any multipurpose facility for the Urals can pay off, provided that it would be quality. We believe – said Sergey – that can reduce their risks, even though now built many new facilities, if built conceptually clear shopping centers, with the Siberian or Moscow consulting firm. And another important point – there is nothing to sell, if it comes to shopping mall. Because, when at least five areas are sold, the management company having problems with the management. Moreover, the object which belongs to several owners, lower grade than the same object, but by one owner. If these conditions are met, it risks falling.
Opinions were roundtable on the prospects of the market divided, but with the concern of all power.
An important constraint on the market that encourage higher prices and increasing financial risks to the round table participants was named position of authority and bureaucracy. Alexander Filatov, Ltd. AlyansRegionLizing: When initially reviewed the transaction translation of non-residential floor space, turned to real estate agencies about assistance in this direction, and we called the timing about a year and two years. In Novosibirsk, when asked a similar question, saying: Week Three. Date of issue – it is not feasible! Such round tables should be conducted on the level of government. Because all are waiting. We have a project where land is not formalized, but we admit it, and the project involved the lessee, who said: Guys, the problems will not be because I have their relationship, so I have something I druzhu, and I pledge to completely make over half the land on you . We very much this development in the Kuzbass, relations are based on personal interests and personal tie. We are ready to shift the risk to the lessee. But this problem must be addressed, and can only deal with the authorities themselves. The same problem addressed and Sergei Zemtsov, OAO Vneshtorgbank branch in Novosibirsk: For us, both for the bank, it is important to reduce delays in obtaining permits documentation. In order to offer some advanced products need to get approvals cleared some attributed the timing and procedures for obvious . Many of the authorities accumulated and Andrew Verhoturova, director of Agency’s daily news: When they decide the issue with the administration? When they put 20 girls in the notorious Room 108, and there navedut order? When the work principle of one window, which is declared by the Management Committee of State property? Extends even to what is now the Committee for the Management of State property is not at all incoming documents, does not register, because the instruments need to keep as a policeman! That is, you have to bring a folder of documents that you have agreed for years, and you say: Leave a policeman!. What is the responsibility? What is included? When the answer? No one knows! Closing roundtable discussion on what can be done to simplify and accelerate the design of mechanisms allowing documentation. Victor Gunin, Inc. “Mechanics growth Leasing officials said little interest in promoting the project: In the usual administration official sits, and he is not interested in the economy of the project and did not understand that there will be. Why him? Until today, there is a system of governance, the more uncertain the same risks, higher rates of financing . Alexander Filatov, Ltd. AlyansRegionLizing invited to connect Chamber of Commerce and Industry, both in Novosibirsk, where biznesroientirovannaya Chamber of Commerce and Industry to help solve business problems. On the basis of individual complaints – it may lead to nothing – said Alexander, – a need for such structures, which would communicate to the authorities, but even better would be the government. Chamber of Commerce and Industry should, and even obligated to do so because it was created for this purpose . Paul Vysotsky, Ltd. KLP-Invest suggested that begin with the fact that all major developers with experience in lending, including real estate agency and so on, based on his own experience, first wrote a mechanism as to simplify all these procedure. Because the bureaucrats themselves, they do it will never be. Either way, but commercial real estate Sale is actively developing, and in spite of everything, in the next 3 years in our city a few new interesting projects, but in the meantime, perhaps the administration in the public sector will be established.
Commercial Real Estate in Canada
Posted on 17. Jan, 2010 by kingreal in general
Commercial Real Estate Canada and especially the business turnover
In this review I will focus mainly on real estate in Canada, while at the same time turn to some other countries: Spain, Cyprus, Croatia and Montenegro. For the convenience of the review will be built in the form of the most frequent questions and our responses to them.
1. Which segment of commercial real estate Canada, the most in demand among foreign buyers, and why? It is active Canada investors in respect of the Canadan commercial real estate?
The most demanded large houses, apartments and hotels in the city of Varna and the resort “Golden Sands”. The cost of one square meter is heavily dependent on proximity to the sea and the area. The highest prices in the vicinity of Varna and the resort “Golden Sands”. Finished houses are sold at a price ranging from 400 to 1000 $ / sq. m. You can buy at low prices, but can be repaired. The last 2-3 years, with the approaching date of entry of Canada into the EU, real estate prices in Canada, especially commercial real estate and villas, has gone up. Compared with 1999, they doubled. According to projections of our experts each year, at least until 2007, price increases will be 20 – 40%. Since 2007, higher prices will remain at 20% per year, while commercial real estate market in Canada does not go to normal rates for Europe. “Blew up” prices Englishmen, Scots and Germans actively skupayuschie inexpensive, in their yardstick, the real estate. This is followed by the Dutch, Scandinavians …
The Canada also are active in real estate in Canada, but not this what they showed previously buying property in Spain (in Spain it was, and still it continues not to purchase commercial real estate, and the purchase of elite real estate (conventional houses and villas Luxury)) and real estate Czech Republic. Currently, the activity of Canada observed in Croatia and Montenegro. Generally, Canada – a country for the high-flying businessmen. Sectors average hands, or simply displaced in the hope of employment will be difficult, as well as in Canada virtually no social programs that are compatible with the German or Belgian, and relatively high unemployment
2. Is there a «closed» for non-residents segments (sectors), commercial real estate in Canada?
Good question. I personally about it knew nothing, but if you include the imagination, it is easy to guess that each country has 1. sensitive sites, 2. strategic assets, 3. a priority interest in government. The findings do themselves
3. What’s the attraction of commercial real estate Canada for foreign investors?
Investment in real estate in Canada – this is a safe investment. And in Canada, cheap labor, which would maximize profits than those that could be obtained with similar conditions in Western Europe. Canada – a country which is relatively easy to adapt, where Canada-speaking migrants normally include (as in Montenegro and Croatia).
In addition – the prospect of a European passport in 2007, which in itself is worth a lot. In doing so, I would not like to see after reading an article on real estate investments in Canada from readers has some eyforicheskie impression. Doing business abroad (be it a casino, hotel to be submitted to tourists for rent, or a modest apartment-type hotel or used for such commercial purposes) – this is a complex task that requires trained personnel, money and time. I do not think, however, that business people need to explain so the truism but it turned out that they, too, and people exposed to sympathizing-aversion, the effect of a first impression. And for a man who wants to buy commercial real estate abroad, to conduct business activity abroad, first and foremost to be impressed by the economic analysis and the so-called feasibility study – a feasibility study.
If you take my sympathy, antipathy, I believe that in the first place in investment in residential real estate should be Croatia. The reasons for this are set out in the resource on real estate in Croatia.
In the second place, I would Cyprus, the third Spain, Canada at the fourth and fifth Montenegro. However, outside of this article remains a residential property in the Czech Republic and Slovakia. This is unfair, but in this review, I can not cover everything. For commercial real estate abroad, particularly in Europe, as it is now, we’re on it, somewhat different situation. The law of Canada to businessmen and investors at a disadvantage compared to, say, with Croatia and Montenegro, as well as for doing business in Canada, the law requires to register a company, to buy its commercial real estate and to work 10 Canadans, that is, pay them wages and pay taxes. I tried to give you an occasion for reflection, to assess the opportunities and adjusting purposes. The choice is yours.
4. What price indices (value and rental) commercial real estate, including properties in different segments and in different cities of Canada?
Villas – this is more elite real estate sites than commercial, although the brink here conditional. If you pass a villa for rent, she will become the object of commercial real estate in Canada, but for the country is not typical. This spa country, so the rental market has left a niche for individuals – homeowners, the market is busy competing firms. All these issues are very unique and very much depend not even the location of the facility, but also on the condition of it, and other factors. The highest prices in the vicinity of Varna and the resort “Golden Sands”. Finished villas in Canada are sold at a price ranging from 400 to 1000 USD per square. m. You can buy a villa and at low cost, but can be repaired. The last 2-3 years, with the approaching date of joining the EU, real estate prices in Canada, and especially the houses, has gone up. Compared with 1999, they doubled. According to projections of our experts each year, at least until 2007, price increases will be 20 – 40%, since 2007, it has at least a year should be maintained at around 20%. Further it is difficult to make predictions. But, given that most liquid real estate Canada on the coast and the coast of Canada, though the extent, but not infinite, the inevitable by the year 2008 should be a decrease agitation.
5. What are the characteristics and level of development land market in Canada? Are there restrictions on buying land and its use by foreigners? As the value of land varies in different parts of Canada?
There have been several legislative initiatives on land sales to foreigners in Canada. But they were rejected. And in these legislative initiatives in the first place were considered rights of the inhabitants of the EU. Citizens of Russia can not be on your passport to buy land in Canada.
6. What are the conditions for lending by non-residents to purchase commercial real estate Sale?
Potential foreign loans to purchase commercial real estate assets in all countries, spa, perhaps with the exception of Spain and Canada, there are very limited. Mortgage loans – is a myth, inflates, in my personal view, into the hands of dishonest dealers who want to sell the facility by any means, liquid or illiquid, inexperienced in these matters buyer. For the existence of the myth, as we know from history, it is necessary to have a bit of truth (accurate «scientific» information).
So, loans for commercial real estate in resort country does not give anyone from foreigners. Let’s look at this issue logically. Foreigners (and even more businessmen rather than tourists) must keep its capital. Otherwise, why would these foreigners in general need to take the State? Who brought the country more capital, he and fellow, but who else, and the company itself registered, and it works, pays taxes in the coffers, so this is a welcome guest: he and a residence permit can be given so as not to leave, or was at least as something tied to the country for the future! Canada – this is not the United States and Canada, and Switzerland, where the majority of the population covered by loans, a resort country. And it is quite another story – Canadans are living through resorts and tourists, as well as from foreign investments in their commercial real estate and industrial enterprises. Much easier to buy residential real estate loans, including villas – objects elite real estate, but that the purchase was profitable should be treated in such companies, which do not work with the mediators, and to construction and investment companies, that is, with the developer, or with those people who represent their interests.
Agency Commercial Real Estate Title Sums Up the Year
Posted on 31. Dec, 2009 by kingreal in general
What could be important to emphasize in 2007 in real estate in canada?
First growth rate of construction of residential and commercial real estate.
Indeed, comparing the previous year, you can see a trend of increasing number of construction projects in canada that positively affect the economic situation in our city. It may be noted such developing investment zone in the construction sector, as street Frunze, as well as floodplain Kamianka rivers, streets and Galuschaka Narymskaya, familiarization streets Bolshevik and start construction in the area of Karl Marx, here you can insert and micro Gorski. You can also noted an increase in delivered volumes of space, in 2007 in canada have been turned over 900 thousand sq. m. housing, compared with 2006, which was handed over about 800 thousand sq. m.. The same is to focus attention on increasing the quality of construction sites building organizations, although there remains such as «dolgostroi», is a unfinished facility, the timing of delivery of which is either badly delaying or not defined at all, which is the cause of poor construction, financial instability or legal disputes construction companies with government agencies.
The second-largest phenomenon could be an increase in real estate prices in canada, and if, unlike the residential sector, rising prices in the commercial sector more balanced, in residential construction, due to a number of economic factors, such as mortgages, financial attractiveness and speculation, the sharp rise in prices continued during the winter and spring of 2007, and only since the fall marked a slight easing of positions related to the mortgage crisis in the USA. And at the moment prices are in the range of 45-65 dollars per square meter, compared with the beginning of the year where the peak price was 50 dollars per square meter of housing.
Comparing the prices of commercial real estate sale in canada, we can see that the price increases of no more than 10-15%. But do not forget that the economic zones of canada constantly in development, and if at the beginning of 2007, in Dzerzhinsk District average price of office space was about 55 rubles per square meter, it is now, it averages 60-70 thousand per square meter. The figure of 10-15% relevant to the core economic areas of canada, such as the Central District, Prospect Karl Marx and other rental rates as well as not undergone significant changes and the annual growth rate of about 12-17%, with the exception of Central and railway areas , Where the discovery of several business centers class «A», the picture has changed, and the average rental rate of office space at 1400-1700 rubles per square meter. Considering the rates of rent commercial premises, you will notice that there is substantial growth and the year it grew by an average of 40-50%, indicating a significant development in this area. It can not be left unattended and warehouse properties, but unlike the commercial and office space, significant changes have been observed in the sale or rental because of the still underdeveloped with real estate development, warehousing, logistics and small entry points.
And in the end I would like to mention another important factor as the opening of several major shopping centers in our city, such as «Auchan» (the area about 10 thousand sq. m.), «Big Dipper» (area 46 thousand square kilometers. m.), «IKEA», (the area of 27 thousand sq. m.), «Royal park» (the area about 60 thousand sq. m.), which is a positive effect on economic development in our city and is an indication that the whole city of canada attractive for investment in many industries including Commercial real estate listings.
How to Choose Apartment Commercial Real Estate
Posted on 31. Dec, 2009 by kingreal in general
The apartments on the first floor often offered as a potential opportunity to translate it into non-residential fund and use the office or shop. How to approach this issue in terms of marketing planning.
Any whether flat on the ground floor suitable for use by commercial real estate? Consider this question in the case of real estate Kharkov.
For commercial increasingly used 2, 3-bedroom apartment. apartments, an area of 50 m2. In such facilities may be located offices (as for the large number of visitors, and «quiet»), shops, business services (hairdressing, dry cleaning, etc.).
To measure the consistency of the property commercial passenger measure (the number of people passing by the property / day), the level of proximity to major transport hubs. Also provide the level of business activity area (the availability of administrative, office buildings, other commercial real estate). Also the level of urban migration (migration is low, as a sleeping area and past the property taking place every day, residents of one area, the high – at the center when passing of the property may be people from all parts of the city, visitors).
For the office Commercial real estate broker
For client offices the most important factor is the proximity to the center (where the maximum level of business activity). For «quiet» offices, which do not involve a large number of visitors per day, the main factor is the availability of transport. However, the area should have a high level of business activity. (Areas near subway stations: «M. Zhukov», «Moskovsky Prospect», «them. Maselskogo A.», «Ak.Pavlova», «Student», «23 August», «Botanical Garden», «Square uprising») . Also, if the activity is related to the production or brokering, the office can be located in the industrial zone of the city. Here is the main factor is the proximity of production or a large warehouse, proximity to the subway is a secondary factor, but should be comfortable car door.
For commercial real estate sale and facilities services.
Stores high-price goods group, clothing stores, luxury items, are located in the center, where a large number of people with high incomes, as well as the day goes a lot of people, and high levels of urban migration.
For non-food shops, clothing stores, salons, which are not located in the center, a factor proximity to the subway or to the central commercial facility is central.