Tag: #officespace

Tenant Estoppel Certificates

Are you a tenant? A landlord thinking about selling? Or an investor looking to buy a leased property? If you have answered “yes” to any of these questions, it is important that you understand what a tenant estoppel certificate is and the benefits and protections it offers.

What is a tenant estoppel certificate?

A tenant estoppel certificate is a legally binding document signed by a tenant verifying the current status and terms of a lease and specifying any modifications to the original agreement, defaults by the landlord, or other issues relating to the lease. Typically, an estoppel certificate is requested by the landlord as part of the due diligence process before closing on the sale of a property. This statement of facts regarding the lease and the premises estops either party from making a claim that contradicts those facts post transaction.

Tenant Estoppel Certificates Include

If you lease, own, or want to purchase a tenant-occupied property, it’s important to understand how a Tenant Estoppel Certificate can protect you.

Most commercial real estate lease agreements include a provision requiring a tenant to complete an estoppel certificate within a specified amount of time after receiving the Landlord’s request. However, only a landlord wishing to sell or refinance the property would request the estoppel. If a lease does not have a provision requiring a tenant to complete an estoppel certificate, it is in the best interest of the tenant to carefully review and complete the estoppel certificate to verify all pertinent lease information.

Why sign a tenant estoppel certificate?

From the tenant’s perspective, an estoppel certificate informs and certifies to the purchaser of the property (i.e., the new landlord under the lease) and, in the event of financing, the lender of any existing issues they will need to address after closing. For lenders and purchasers, the estoppel certificate verifies information presented by the landlord regarding the tenant, the premises, and certain material terms of the lease, which helps prevent any costly surprises after closing.

As a full-service commercial real estate firm, Kelley Commercial Partners provides landlord and tenant representation. And no matter which side we represent, we are committed to successfully guiding you through the process from the beginning through closing. For all your commercial real estate needs, let us be your partner to success.

Abby Turner Promoted to Assistant Property Manager

Abby Turner

Last May, Abby Turner interviewed with Kelley Commercial Partners for the position of tenant relations manager, and it didn’t take long for us to figure out that Abby would be a great addition to our team and a perfect fit for the job. Immediately following her graduation from Ouachita Baptist University, the Arkadelphia-native packed up and moved to the big city to start her new job in Arkansas’s tallest building. She would assist tenants of the three floors in Simmons Tower dedicated to executive suites: Level Two Executive Suites, 15th Floor Executive Suites, and the new Capital Center 12th Floor Executive Suites.

When Abby started, we had nearly completed the conversion of 19,100 square feet of office space on the 12th floor to 50 executive suites. One month later, with Abby’s help, we began leasing the Capitol Center 12th Floor Executive Suites, which is now 80 percent occupied.

As the tenant relations manager, Abby welcomed new tenants to executive suites on floors 2, 12, and 15 and made sure they had everything they needed to get right to work, but she didn’t stop there. Abby also helped coordinate the annual Christmas Tree Lighting celebration and established the very popular “Food Truck Tuesday,” which takes place every other Tuesday. She even brought in a trainer and a yoga instructor to teach classes in the gym on the second floor. And on top of all of that, she still finds time to manage Simmons Tower’s social media accounts. (Follow them on Facebook and Instagram.)

In less than a year, Abby was promoted to assistant property manager, and she has just earned her real estate license. She looks forward to planning more events for the Tower and reestablishing a sense of community for the building. She says meeting new tenants is her favorite part of the job, plus she says she really likes her KCP teammates. Really.

Abby, we are so pleased to have you on our team and congratulate you on your achievements so far. We really like having you on our team. Really.

 

Predictions about commercial real estate in Little Rock circa 2050

In this month’s issue of the Arkansas Times, Hank Kelley shared his thoughts about what the commercial real estate industry will look like in 2050. 

Hank Kelley, CEO

Hank Kelley, CEO

Connectivity

There is demand now — and will be in the future — for unique living and workspaces in multiple-story buildings so your space can be close to other residents and professionals, and to other recreational and educational uses. The way we “go to work” now will change over the next 30 years, and the need to have the same level of hard-wall separate office areas within a building will change. More emphasis will be placed on a building’s connectivity for virtual connections than exists today. Even today, mobile professionals regularly chart their destinations based on the connection to credible Wi-Fi. In 30 years, the need for high-quality connections will be a constant and core requirement.

The exterior of buildings will hopefully be a source of energy generation through advances in solar panel technology, but not at the expense of views within the spaces. More filtering will improve indoor air quality. Rooftop decks and balconies with sunscreen canopies will be the norm as people continue to want to be outdoors but become even more concerned about sun exposure.

Mixed-Use

I believe we will continue to see an evolution of larger office buildings to include a mixture in their uses. The cost of converting their use, though, will have to be feasible before developers will invest in the remodeling needed for conversion. The conversion of office buildings to residential and or hospitality (hotel) requires extensive plumbing and mechanical alterations, and those changes will only happen when adequate demand for those uses justifies the conversion cost. In the short run, we will see workspaces within the buildings compressed to more flexible work environments and, in some cases, with even more open floor spaces for cubicle and tabletop workspaces. Landlords will become more flexible on tenant expansion and contraction needs to retain their tenants and use the surplus space they have to attract growing businesses.

The office buildings and existing residential condo buildings in Little Rock’s Central Business District represent the highest density of population per mile in our city and region, and companies will continue to be attracted by the excellent accessibility to both I-30 and I-40. People who live in midrise and high-rise buildings in the Central Business District enjoy walkable amenities now — the Central Arkansas Library, the Robinson Center, the Arkansas Museum of Fine Arts — and we believe the demand for walkable amenities will grow over time.

“’Hoteling’ of office space and rotation of in-office and out-of-office workdays will become more of a norm.”

As regards trends toward remote working, we don’t believe the majority of companies will choose a completely remote workforce because of the challenges in maintaining the culture needed to compete. “Hoteling” of office space and rotation of in-office and out-of-office workdays will become more of a norm. We continue to believe there is value in the separation of workspace and living space. The networking component of “going to work” is now and will continue to be a valuable need for workers and companies.

Energy Efficiency

We will see great advances in products and technology to conserve and generate energy, water and land at both the individual user level, but also at the utility provider level. We are hopeful those advances will reduce operating costs and help preserve our natural resources. The office building industry has been active in conservation efforts through the LEED certification process. Maintaining buildings to operate at peak efficiency will become a requirement to own and operate a building, and utility providers will charge non-compliant building owners penalties for excessive consumption.

We expect that fewer people will own their own cars, meaning we will see less of a need for parking spaces.

Finally, inflation will increase interest rates on the debt and the cost of services to maintain existing buildings. Some building owners are not prepared for their debt and operating expenses to increase, as they have been trying to maintain current rent levels with tenants. This means less income is available to pay debt and reinvest in building upgrades needed to maintain an efficient and attractive building. The squeeze of increasing costs will challenge some building owners and cause a change in ownership if those owners don’t have adequate reserves. Tenants will seek out buildings with owners who have the financial resources and desire to reinvest in their properties.

Hank Kelley is CEO and Executive Broker at Kelley Commercial Partners, and has been working in brokerage and property management in Little Rock for 36 years.

Franks Dermatology adds SKN at Franks Dermatology

 

Rachel Sims Hayden Franks

Rachel Sims, RN and Hayden Franks, MD partner to add SKN at Franks Dermatology

Franks Dermatology opened in Suite 320 of the Simmons Plaza Building at 4220 N. Rodney Parham Rd. in 2017. Dr. Hayden Franks and his wife, Lynne renovated the 2,064 s.f. suite and created a beautiful space for his patients from the moment they enter the reception area and into each examination room. They thought of every detail with the patients’ care and comfort foremost in their design. After practicing for more than 20 years, Franks has built a reputation for providing exceptional care. His staff shares the same commitment to the patients. Franks specializes in medical dermatology, surgical dermatology, and skin cancer.

In March, Franks partnered with Rachel Sims Miller to open SKN at Franks Dermatology located in Suite 102 of Simmons Plaza. This 1,977 s.f. space was also renovated to create a welcoming and relaxing space for clients. SKN offers high-end skin care and a wide range of aesthetic products. Miller is a registered nurse and an aesthetic nurse injector with more than seven years of experience. Her training and continuing education keep her informed of the latest, safest, and most effective products and procedures available. She has also developed her own skin care line, Miller Marsh Cosmetics. Like Franks, Miller is passionate about her work and dedicated to providing superior care to each client.

Senior property manager, Cheryl White, says Franks and Miller have been a pleasure to have as tenants. “I wish them great success with their newest endeavor. SKN is a wonderful addition the to the building and community,” said White.

Kelley Commercial Partners leases and manages properties to suit a variety of medical practices. If you would like more information about what we have available, please call 501.375.3200.

Landlord representation strategically positions property in the market

Landlord representation is just one aspect of the full range of brokerage services provided by our agents at Kelley Commercial Partners. Landlords, property owners, and investors in the know utilize our services to gain a better understanding of the market and, armed with the expertise and knowledge our agents provide, optimize the return on their investments. “We help property owners make informed decisions by strategically positioning their property in the market to achieve the best results,” said Daryl Peeples, president and partner at KCP.

Daryl Peeples, President, Principal Broker, Partner

“We help property owners make informed decisions by strategically positioning their property in the market to achieve the best results,” said Daryl Peeples, president and partner at KCP.

The first step in our process is evaluating your property and understanding your unique goals. After a tour of the property, agents will perform a thorough market analysis, make recommendations for any improvements or repairs, discuss competitive lease rates, current occupancy rates, and identify all possible tenants. This knowledge builds the foundation of our next step: an effective marketing plan.

Marketing your property through Kelley Commercial Partners includes high-quality photography, prominent signage, a property brochure, and exposure on our website and the nation’s leading commercial real estate search engines including Costar and Crexi. For retail property owners, we have a direct connection to a large network of retail partners across the country through our exclusive membership in ChainLinks Retail Advisors. Additional digital marketing includes regularly scheduled email campaigns sent to targeted lists of prospects as well as social media posts to our growing number of followers. Throughout the marketing process, agents keep you informed with open lines of communication and they are available at any time to address questions or concerns.

With a marketing plan in place, the real work for you and your property begins. Agents begin prospecting the most viable leads, conduct showings, screen prospects, negotiate rates, draft lease agreements, and perform all due diligence involved in the leasing process.

Even for the experienced landlord, leasing a property can be a time-consuming process and finding the ideal tenant can be a challenge. With our agents on your side, you can rest assured that we are committed to our fiduciary responsibility to you and we will work to serve your best interests.