Tag: commercial real estate

Unlocking Productivity and Flexibility: Exploring the Benefits of Executive Suites

Posted on 09/26/23

Capitol Center Executive Suites Reception

By Kaley Tucker, RPA
Property Manager | Partner

In the ever-evolving landscape of modern business, traditional office spaces are no longer the sole option for professionals seeking a conducive work environment. The rise of executive suites, also known as co-working office spaces, has transformed the way people work, collaborate, and succeed in their careers. In this article, we will delve into the key features of executive suites and explore the diverse range of individuals and businesses that can benefit from them.

What Are Executive Suites?

Executive suites, often referred to as co-working office spaces, are flexible workspace solutions that provide a wide range of office amenities and services within a shared environment. These spaces are designed to cater to the needs of professionals, freelancers, startups, and established businesses alike. They offer an alternative to the traditional office setup, allowing individuals and organizations to work in a collaborative and cost-effective environment.

The key features of executive suites include:

Flexible Office Space: Executive suites offer various workspace options, including private offices, meeting rooms, and communal areas. This flexibility allows individuals and businesses to choose the environment that best suits their needs.

Amenities and Services: Executive suites can come equipped with essential office amenities, such as high-speed Wi-Fi, printing and scanning facilities, phone services, community breakrooms, and conference facilities. Furnished spaces are also sometimes available upon request. Furthermore, executive suites frequently provide concierge services, manage mail handling, and offer access to comprehensive administrative support.

Networking Opportunities: Executive suites foster a sense of community by bringing together professionals from diverse backgrounds and industries. This environment encourages networking, collaboration, and the exchange of ideas and services.

Flexible Lease Terms: Another appealing feature of executive suites is their flexible lease terms. Unlike traditional office spaces that often require long-term lease commitments, executive suites typically offer month-to-month lease options. This flexibility allows occupants to expand or contract their space requirements with ease, making it an attractive choice for businesses that value adaptability in their workspace arrangements. Whether you’re scaling up your team or downsizing temporarily, the ability to adjust your office space on short notice can significantly enhance your operational agility.

Who Can Benefit from Executive Suites?

Entrepreneurs and Startups: For entrepreneurs and startups looking to establish themselves in the business world, executive suites provide an ideal solution. These spaces offer affordable office setups and access to resources that might otherwise be out of reach. The networking opportunities also help startups connect with potential partners, clients, and investors.

Remote Workers: As remote work becomes increasingly prevalent, remote workers often seek a dedicated workspace away from home. Executive suites offer a professional environment where remote workers can focus on their tasks without the distractions of home life.

Small and Medium-Sized Enterprises (SMEs): SMEs looking to scale their operations can benefit from executive suites as they provide flexible expansion options. Businesses can easily add or reduce the number of workspaces they require, adapting to their growth trajectory.

Freelancers and Solopreneurs: Freelancers and solopreneurs often find executive suites attractive because they offer a professional setting to meet clients, collaborate with others, and maintain a work-life balance. It also gives them access to a more formal work environment than working from home.

Large Corporations: Even established corporations can benefit from executive suites. They can use these spaces for project-based teams, satellite offices, or as temporary solutions during office renovations or relocations. This flexibility allows them to optimize their real estate portfolio.

Consultants and Professionals: Consultants, coaches, lawyers, accountants, and other professionals can utilize executive suites to meet with clients and have access to well-equipped meeting rooms. This creates a professional image and enhances client interactions.

Creatives and Artists: Creative professionals such as writers, designers, and artists can find inspiration in the dynamic atmosphere of executive suites. These spaces often host events and workshops that can foster creativity and collaboration.

Temporary and Mobile Workers: Professionals who require temporary office space while traveling or working on short-term projects can benefit from executive suites. They offer a convenient and comfortable workspace in various locations.

Nonprofit Organizations: Nonprofits often have limited budgets, and executive suites can provide a cost-effective solution for their office needs. These spaces allow nonprofits to focus their resources on their mission while benefiting from professional facilities.

Work-Life Balance Seekers: Individuals who value work-life balance may prefer executive suites over long commutes to traditional offices. These spaces are often located in convenient areas, reducing commute times and improving overall well-being.

Executive suites, or co-working office spaces, have emerged as a versatile and innovative solution for professionals and businesses seeking a conducive and flexible workspace. With their wide range of amenities, cost-effective options, and networking opportunities, executive suites cater to a diverse audience. From entrepreneurs and remote workers to SMEs and large corporations, these spaces offer a modern and adaptive approach to the evolving world of work. By embracing the benefits of executive suites, individuals and organizations can unlock new levels of productivity, collaboration, and success in their professional endeavors.

If you think executive suites might be the right fit for you or your business, Kelley Commercial Partners is your go-to resource for finding the ideal solution. With a robust portfolio encompassing nearly 110,000 square feet of executive suite space under our expert management, we are confident that we can help you find the space to fit your specific needs. Call us today at 501.374.3200 or visit our website and view our office listings to learn more.

1031 Exchanges Help Defer Certain Tax Liabilities

Posted on 09/11/23

Brokerage, property management, development management, consulting

For all of your commercial real estate questions, ask a professional at Kelley Commercial Partners

A 1031 exchange, also known as a tax-deferred exchange, gets its name from the Internal Revenue Code 1031. Essentially, this rule in the tax code allows investors to defer certain tax liabilities they would otherwise incur after making a profit from a real estate investment. This can be an incredibly effective tool for investors who find themselves in a situation in which they would like to sell a real estate holding, but do not want to incur the tax burdens such a transaction would create.

In order to take advantage of the 1031 exchange rule, you must replace the property you are selling (the relinquished property) by purchasing another property (the replacement property) with one of equal or greater value and similar in kind and use. For example, if you are relinquishing a rental property for $100,000, you must replace it with another rental property with one valued at $100,000 or more. (You may also have the option to buy several rental properties, so long as the sum total of their value is $100,000 or more). So, unfortunately, you cannot relinquish a rental property and replace it with a vacation home because those two properties would not be alike in kind and use.

In addition to these restrictions, there is a set time frame in which all of these transactions must occur. Once the relinquished property has closed, investors have 45 days to identify the replacement property and 180 days to close that transaction.

Finding buyers for the properties you wish to relinquish, while at the same time attempting to identify equitable exchange properties can be challenging, especially considering the time restrictions. Proper attention must be paid to the details of how 1031 exchanges work and how using them might affect your long-term plans. This is why it is so important to find an experienced CRE professional you can trust to help you with the due diligence commercial real estate transactions require.

If you have any questions regarding a tax-deferred exchange or any other commercial real estate issue, Kelley Commercial Partners brokers and associates are here to provide the answers and support you need to make successful decisions.

The Benefits of Investing in Office Buildings

Posted on 04/27/23

By Bill Puddephatt, CCIM

Investing in the CRE-Office sector can offer an excellent opportunity to diversify one’s investment portfolio. A CRE office property is a hard, tangible asset which has historically performed well over time. When the opportunity presents itself and if the time is right for you, it is wise to engage the services of an experienced CRE agent who can help evaluate and develop an investment strategy that is suited specifically for your needs and goals. It is also advisable to engage your CPA and attorney for their expertise at some point in time as well.

There are two types of investors: owner/users who intend to occupy the purchased property and those who strategically invest for the income stream and future appreciation value.

OWNERS/USERS

If you are an owner/user, you have better control over occupancy costs as you can manage levelized mortgage loan payments and have more control over operating costs such as real estate taxes, building insurance costs, property management fees, and grounds and building maintenance expenses. This provides an advantage tenants cannot have as they are often subject to annual rent increases, escalating operating costs, and a fair rate of return added for the landlord.

INCOME-GENERATING INVESTORS

Others chose to invest in CRE office property assets as an alternative way to diversify their portfolio while at the same time building a steady reliable cash flow. This type of investment also provides tax-favored treatment such as depreciation and capital gains treatment when you sell. You may also defer your gains via a 1031 tax-deferred exchange by rolling your gains into a like-kind property when you sell. The 1031 tax-deferred exchange has specific rules which one’s CPA can assist in analyzing for you. Read more about 1031 Exchanges by clicking here.

Both scenarios are considered excellent diversification strategies that may allow investors to achieve an attractive rate of return that can continue to grow over time, as well as the opportunity to sell and realize a gain resulting in a more favorable capital gains tax rate treatment than that of an ordinary income tax rate. And one doesn’t need to start with a large investment. You may decide to invest as a sole owner of a small property or as a partner/member of a larger entity. The latter provides the advantage of spreading out your risks, as a larger property likely has more tenants, which means if a tenant vacates a space, it is less impactful than losing a tenant in a smaller building with a single or very few tenants.

And last but certainly not least, investing in the CRE office sector provides another incalculable benefit: the pride of ownership!

As with any investment opportunity, risks are involved. This is why it is important to work with a professional commercial real estate broker who understands the market and can help you identify and carefully evaluate any potential investment opportunity to ensure that it aligns with your goals and risk tolerance. With the right approach, investing in office buildings can be a great way to build long-term wealth and generate passive income.

Bill Puddephatt, CCIM

Bill Puddephatt, a distinguished veteran of the Central Arkansas banking industry, made a seamless transition into the real estate brokerage field with Kelley Commercial Partners. With a remarkable career that included originating over $1 billion in loans without a single loss, Bill’s expertise in financing encompasses a wide range of real estate ventures, from office buildings to multi-family projects, hotels to subdivision developments. Renowned as a trusted advisor, he offers clients tailored solutions in the ever-changing realm of real estate.

Kelley Commercial Partners has an award-winning team of real estate professionals with the experience and knowledge to ensure you maximize your potential and reach your financial goals. Let us help you create a clear plan and provide the guidance you need to confidently move forward. Contact us today or click the links below to learn about current office property investment opportunities in Central Arkansas.

Office Building Investment Opportunities

1900 Malvern Ave, Hot Springs

212 Center St, Little Rock

720 W 3rd St, Little Rock

4 Shackleford Plaza, Little Rock

5414 Landers Rd, Sherwood

Due Diligence Explained

Posted on 02/01/23

Due diligence typically involves reviewing and gathering a variety of information about a property, including financial records, legal documents, appraisals, and physical inspections before a buyer or seller enters into an agreement. The role of a commercial real estate agent in the due diligence process is to act as a facilitator, helping to gather and organize information, and to serve as a resource for the buyer or seller as they assess the potential risks and liabilities associated with the purchase or sale of a commercial property.

Our job is to facilitate transactions for either buyers or sellers.

Due Diligence for Buyers

From the buyer’s perspective, due diligence is an important step in the process of purchasing commercial real estate because it helps them make an informed decision about whether to purchase the property and to understand the potential risks and liabilities associated with the purchase. Some specific tasks that may be involved in due diligence for a commercial real estate transaction from the buyer’s perspective include:

Reviewing financial documents, such as tax records, budgets, and income statements, to assess the financial health and performance of the property.
Examining legal documents, such as leases, contracts, and deeds, to understand the property’s ownership and any legal liabilities or obligations associated with it.
Conducting physical inspections of the property to assess its condition and identify any potential issues or repairs that may need to be addressed.
Reviewing environmental reports and assessments to ensure that the property is in compliance with local and national environmental regulations and to identify any potential environmental hazards.

Due Diligence for Sellers

From the seller’s perspective, due diligence is the process of providing information and documentation about the property to the potential buyer. The seller is responsible for disclosing any known issues or problems with the property, as well as providing any relevant financial and legal documents for the buyer to review. In addition to providing information to the buyer, the seller may also want to conduct their own due diligence on the buyer. This could involve reviewing the buyer’s financial situation and ability to purchase the property, as well as their plans for the property once they take ownership.

Our associates at Kelley Commercial Partners have the experience and knowledge to ensure seamless property transactions for either buyers or sellers. If you’re considering the acquisition of a property or the sale of property, consider representation from our team. Contact one of our experts today.

Stretch Zone Opens in West Cantrell Plaza

Posted on 06/28/22

Stretch. Work. Play. Repeat. That is the mantra at Stretch Zone, a practitioner-assisted stretching facility that recently opened its first Arkansas location in West Cantrell Plaza at 14300 Cantrell Rd. in Little Rock.

Blake Mack, the general manger of the new West Little Rock location explains practitioner-assisted stretching as “a life-changing stretch experience that can provide clients with immediate relief from muscle pain and tension, improve pain-free range of motion, and enhance physical and athletic skills.” And the best part is, you see results from day one. Mack described his session with a client recently saying, “I had to remove her socks when we first began because she could not bend over to do that herself, but by the time we were done, she was putting on her own socks!” That’s a fairly impressive accomplishment after a single session.

Stretch Zone uses a patented strapping system and proprietary tables that position, stabilize, and isolate muscles.

Stretch Zone uses a patented strapping system and proprietary tables that position, stabilize, and isolate muscles, allowing practitioners to provide a unique stretching experience that simply cannot be accomplished at home. This unique approach is designed to help just about anyone, from professional athletes to those recovering from surgery, and even a completely unconditioned person with very limited mobility.

All Stretch Zone practitioners receive hands-on training and are certified by the National Board of Therapeutic Massage and Bodywork, which means you are always in good hands. They work with professional sports teams in the NBA and the NFL. Stretch Zone services are also included in some of the best spas around the world, from Miami, to New York City, to Italy. And if you’re looking to improve your golf swing, Stretch Zone has you covered. They work closely with Palm Beach Gardens, the PGA National Resort and Spa!

Stretch Zone’s operating hours are flexible enough to work just about anyone’s schedule. They are open from 7 a.m. to 7 p.m. Monday through Friday and 7 a.m. to 5 p.m. Saturday and Sunday. You can try your first stretch session for free. To book an appointment, call 501.812.3931 or visit their website.

Brandon Sheard and Kindley Wasson of Kelley Commercial Partners represented Stretch Zone, and Eric Varner of Kelley Commercial Partners represented the landlord. Welcome to West Cantrell Plaza, Stretch Zone, and welcome to Arkansas!