Small business owners in North Carolina and South Carolina are being forced to make some hard choices. Do I pay rent for my commercial space, or do I pay my employees? What if I can’t do either? What if I can only do one?
Some businesses have been able to adapt and get creative to make it through these hard times, but may not be operating at 100%. Other businesses are facing severe hardships through no fault of their own and have already closed their doors or are hanging on by a thread. If you fall into one of these categories, there is help available to you.
The CARES Act was recently passed by Congress. Although the details are still being worked out, the purpose is to give small business owners immediate help to survive the COVID-19 pandemic. There are a few options to help you pay your rent and pay your employees. For the most up to date information please visit https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act
Paycheck Protection Program (PPP) allows small businesses to keep workers on payroll during the pandemic. You can also use the money to pay rent, mortgage interest, and utilities.
- Has the potential of the all or most of the loan to be forgiven (businesses that pay all employees for 8 weeks will not have to repay loans used for payroll, rent, mortgage interest, utilities)
- Only for small businesses with less than 500 employees
- It covers sole proprietors, independent contractors, self-employed individuals, private non-profits, veteran’s organizations
Economic Injury Disaster Loan Emergency Advance (EIDL) is a loan that can provide up to $2 million dollars at 3.75% interest for a 30-year term. Most non-profits will have a 2.75% interest rate. While the payments are deferred for 12 months, the interest does accrue.
- Advances up to $10,000 within 3 days of successful application – does not need to be repaid
- No personal guarantee for loans under $200,000
- Collateral required for loans over $25,000
- Sole proprietors, independent contractors, co-op, or tribal small businesses are eligible
- There are some exclusions on how you can use the money (dividends, bonuses, expansion/acquisition of real estate, refinancing debt)
- Apply for the loan here: https://covid19relief.sba.gov/#/
In addition, you can apply and use both PPP and EIDL as long as the funds are used for different purposes. Please consult https://www.sba.gov/funding-programs/loans/coronavirus-relief-options for the most current information.
SBA Express Bridge Loans is for small businesses who have an existing relationship with an SBA Express Lender.
- Access up to $25,000
- Quick turnaround
- Repaid in full or part by an EIDL loan
As you can see, there are many options available to you that are designed to give your business the lifeboat it may need. You will be able to pay your employees, pay your monthly rent or mortgage, and basically keep the lights on until your business can reopen.
Disclaimer: The logistics are still being worked out and the rules and regulations are very fluid at the time this article was posted. You will find the most up to date information on sbc.senate.gov. Please consult with an SBA preferred lender, your bank, or your accountant for their professional recommendations.
Brian Smith, CCIM, MBA, is the founder of Regent Commercial Real Estate, located in Mecklenburg County, North Carolina. He specializes in tenant and landlord representation in North Carolina and South Carolina. He is an expert in his field and welcomes the opportunity to answer any questions you may have during this confusing and uncertain time.
We are experiencing unprecedented events that leave most of use worried and confused. Most business owners are being forced to make hard decisions, like laying off staff or temporarily closing their doors. If you rent commercial space, you may be wondering what your options are if your business is facing hardship during the coronavirus pandemic.
You should start by reading your lease to see if you have any options for reduced rent. It’s probably not likely, but you need to know your options.
Talk to your landlord. If you have a real estate broker, have them speak to your landlord on your behalf. It doesn’t hurt to plead your case. This is an emotionally charged time for everyone and it might make more sense to have a neutral party that isn’t emotionally invested. Landlords are also making difficult choices so keep the conversation civil if you are talking to them directly.
While you may be concerned about your immediate need for rent relief, most landlords are in this for the long haul and will be looking at the big picture. Which means they might be willing to work with you. However, your landlord’s situation will have a direct impact on how much they are willing to help―or not help you.
Even if your business is operating as usual during the COVID-19 pandemic, you should contact your landlord. They may be willing to offer you some concessions, especially if you are getting near the end of your lease term or are coming up on a renewal option. You are also in a very strong position if you need expansion space.
No one has been though something of this magnitude before and we are learning as we go, butgetting some advice from a trusted commercial real estate professional may help ease your mind a bit during this uncertain time.
Brian Smith, CCIM, is the founder of Regent Commercial Real Estate based in Charlotte, North Carolina (Mecklenburg County). He specializes in tenant and landlord representation in North and South Carolina. Please don’t hesitate to contact him with any specific questions you may have. 704.910.9518 or firstname.lastname@example.org
Subleasing a space sounds like a great deal, right? Find a furnished space and move-in. Although subleasing a space sounds simple and straightforward, it is not. There are many factors to consider when entering into a sublease. A sublease will contain more paperwork than a standard lease. It will include the sublease, the original lease and addendums, and the landlord’s consentdocument.
You need to be cautious, and having a qualified a commercial real estate broker at your side will immediately give you an advantage. Your sublease is contingent on the sublessor’s original lease and it needs to be thoroughly reviewed by a professional. They have the experience to understand the documents needed for a sublease transaction and can walk you through the process.
There are many reasons a company chooses to sublease their space. They may have downsized and are trying to cut costs by subleasing the space they no longer need, or they could be outgrowing their space and the landlord is not able to accommodate them in their current space. If there is enough term left it would make sense for them to sublease rather than pay earlier termination fees. Either way, you will probably get a below market deal.
Deciding whether or not to sublease is a big decision and there are many factors to consider. We can help you navigate through unfamiliar territory. Contact us today and we can help you get started.
Thinking of Selling Your Commercial Property? Now is the time!
Brian Smith, founder of Regent Commercial Real Estate, recently closed on a record sale in Fort Mill, South Carolina. This industrial property sold before it even hit the market!
Brian has the connections and the expertise to guide you through a successful commercial sale. Contact him today for a complimentary consultation. email@example.com 704.910.9518
When you rent office space, your monthly rent and all expenses are determined on a per square
foot basis. Since this is the determining factor for all your expenses, it is important to make sure
you have the right amount of space for your needs. While cost is important, you should also
take into consideration how the space layout will affect your employee’s productivity and job
Your first step is to assess your current situation and have a general idea of your future needs.
Here are a few questions you should ask yourself:
- How many employees do you currently have?
- Do you plan on hiring or downsizing in the next five years?
- Does your current office layout work for you? Create a pro and con list
- If you do not currently have office space, what would your ideal space look like?
Square footage needs per person will vary greatly depending on your industry and personal
preferences, but a safe average is 175 square feet per person. For example, if you have 25
employees, you will probably need an office around 4,375 square feet. While that might not be
your final number it will give you a general idea of what you will need. Keep in mind that it could
be as low as 150 square feet per person or as high as 330 square feet person. It all comes
down to the type of layout you will need.
You will also need to determine the type of space that will work the best for you and your
employees. Your company will have its own unique requirements so there is no one fits all
approach. While cost is a deciding factor, it shouldn’t be the only criteria. Having an open
dialogue with your employees on their wants and needs can be very helpful at this stage. Here
is a look at the most common layouts.
This type of space will have minimal (if any) private office and conference rooms. This allows for
flexibility and collaboration, but you sacrifice privacy. This type of layout typically requires less
square footage, making this a more affordable option. This space is ideal for start-ups and call
Private Office Layout
This dense plan consists of private offices and conference rooms. Each employee will have their
own space and will be closed off from their coworkers, however this works if confidentiality and
client meetings are a priority. This type of layout will be more expensive due to the larger square
footage required. Law offices and mental health practices can work well with this layout.
The 2019 Gensler U.S. Workplace Survey states that 77% of employees prefer an office space
that takes elements from both the open and private layouts. By choosing the combination
layout, you are able to offer an adequate level of collaboration and privacy to your employees.
Now it’s time to enlist the help of a commercial real estate broker to help you find your ideal
space. Once you have found the perfect space it is time to bring in a space planner. A space
planner can help you determine the most efficient layout for your needs.
Regent Commercial Real Estate specializes in tenant representation. They are experienced and
dedicated. Contact them today.
Commercial property is considered anything that is used for business. It can include office
buildings, warehouses, retail malls, manufacturing facilities, hotels and large residential
properties. When you invest in commercial property you make money through rental income
and appreciation in the property’s value over time. Investing in commercial real estate can be
profitable, but can also come with significant risks. Buildings don’t always hold value and
tenants don’t always renew. You think you are ready, but where do you start?
Step One: Know Your Why
Take some time to determine what your goals are for purchasing commercial real estate. Some
examples would be:
- Do you want to invest in a property that you will also occupy or are you interested in
purchasing a property to diversify your portfolio?
- Do you want to buy a property that is 100% leased and doesn’t need any immediate
improvements or do you want to purchase a vacant property that needs significant
improvements at a lower price (value add property)?
Step Two: Get Educated
Buying commercial property is complicated and it takes research, planning, and time. Eventually
you will need to call in the experts, but it never hurts to have a simple understanding of the
process. This is not like investing in stock. Commercial properties will require your time and
attention to stay on top of any issues. You need to be an involved participant for your
investment to succeed. For example, real estate markets are cyclical so you need to determine
where the market currently stands and when it is expected to change. Getting in at the right time
Step Three: Assemble an Expert Team
You know the old saying “you don’t know what you don’t know?” This is especially true when
you decide to invest in commercial real estate. You need to surround yourself with specialists
who have been there, done that and can guide you through this new venture. These specialists
- Commercial real estate broker to help you analyze the market and find potential
opportunities that meets your goals
- Mortgage broker to help with your financing needs
- Lawyer to review all documents associated with the transaction
- Accountant to advise you on tax related issues and to run the numbers before you buy.
They should also forecast your future returns.
Step Four: Find the Right Property
This is where a commercial real estate broker is essential. Their market expertise is invaluable
as you search for your first property. If you have been thinking about purchasing commercial
property, give us a call. We would welcome the opportunity to discuss your needs and
determine if the time is right to start investing in commercial real estate.
Brian Smith, CCIM, can answer any questions you have about investing in commercial real
estate. Contact him today for a complimentary consultation.