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All Forum Posts by: Danny Simard

Danny Simard has started 6 posts and replied 71 times.

Post: Double Net Lease

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Jose Quinones:
Quote from @Steven McPherson:

100% what @Chris Mason said.

But I'm just curious: Why did you choose a NN lease and not a NNN lease?

Well, the business owner is my stepmom and we have a spoken agreement since she gave me the down payment to buy the property. I’m just trying to get up some docs to solidify our verbal agreement. Also, what I’m asking for will cover all expenses while still meeting here investsmwnt goals. 

Here to also say do what Chris Mason said. However, with an arrangement like that, you should talk to an attorney. 

Post: I NEED Help With The Atlanta Market!

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35

Hey Sam, 

I don't think I'm exactly the right partner for what you're describing, but I'm also bullish on Atlanta, and I have one residential rental property in Georgia. Plus, I work in the commercial world, so I might have some insight to share with you. If you'd like to chat and brainstorm ideas, my dm's are open.

Post: Dollar General sale

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35

Just going to piggy back on what others are saying here with a simple question you should ask when considering buying any existing property, assuming you aren't buying with the plan to demolish and build something new:

- When my current tenant leaves, what kind of tenant will replace them? It's a bad situation when you have a property that only serves an extremely limited pool of potential tenants, i.e. Dollar Generals et al. Apartments? Pretty much anyone can replace an outgoing tenant. Same applies for other broad asset classes (office, industrial, retail). Gas station? Pretty much only another gas station operator would move in there. Can't really convert it into a Starbucks without a cost-prohibitive amount of capex.

Post: Office Landlords: How's it going? (2023 Q4)

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Jade S.:

Just one office building in my portfolio at this point in the Upstate of South Carolina.  Two story, 7500 sq foot building with 5 tenants…just had one new tenant sign a lease for 1200 square feet even before the exiting one departs, and another current tenant has requested a 2-year renewal extension several months before their lease term ends.  The spaces in the building range from 650 sq feet up to that 1200 square foot space.  However, bigger office spaces (> 6000 sq feet) in Greenville, SC have had a harder time it appears, which seems consistent with some other metro areas.  


Congrats on that leasing activity! 

Post: Office Landlords: How's it going? (2023 Q4)

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Carlos Ptriawan:
Quote from @Danny Simard:
Quote from @Scott E.:

Are you considering repurposing the space in your high vacancy building?


Mine? Well, based on the floor plates of this particular building, there's not much to be done. We're in that sweet spot of too big to chop up into resi, and too modernized to justify the cost of either demo or cutting into the structure to make it "E" shaped. 


 I guess most office space would be hard to be converted to resi from technical perspective , I can't think how do you modify all those plumbing works. Would it better if you guys just build from scratch. Not to mention building code as well.


This is the $100,000,000 problem of most office landlords and will be for the rest of this decade (and beyond, probably).

Post: insight into baby steps?

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Kristi Kandel:
Quote from @Patric Doyle:

Outside of running your own rental and having some cash available. What would you say is the very first step in getting started in commercial real estate (i.e. multifamily or triple net)? It seems like it's a whole other world. Where do you start to build contacts?


 Start by networking with the development team professionals in your local market. 

  • Developer: in charge of the entire process
  • Partners: Strategic Partners understand the market & are a general partner in the deal
  • Financing & Funding: debt & equity partners
  • Legal: all contracts, leases, closings
  • Broker: site & tenant acquisition
  • Community (AHJ): zoning, building permits, inspections, business license - help ensure the project complies with zoning regulations & will be a benefit to the community
  • Design & Construction
  • Design Team
    • Architect
    • Structural Engineer
    • Mechanical/Plumbing/Electrical (MEP) Engineer
    • Civil Engineer
    • Landscape Architect
  • Management
    • Project Management through construction completion
    • Property Management throughout the lifetime of owning the asset

This is a fantastic list. Thanks for writing it up, @Kristi Kandel!

Post: Office Landlords: How's it going? (2023 Q4)

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Scott E.:

Are you considering repurposing the space in your high vacancy building?


Mine? Well, based on the floor plates of this particular building, there's not much to be done. We're in that sweet spot of too big to chop up into resi, and too modernized to justify the cost of either demo or cutting into the structure to make it "E" shaped. 

Post: Is Commercial Real Estate Still Active in Your Market?

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35
Quote from @Bradley G Fagg:
Quote from @Danny Simard:

What asset class are you working, @Bradley G Fagg? Here in Southern California, trophy properties are still doing well and still trading, though volume is down here like it's down everywhere. 

I'm in commercial office space in Utah and everyone I call isn't interested in selling at a loss. They seem to think there value is down so not the time to sell. I feel a lot of office space here in Utah is not being utilized fully is an other reason. It also seems deals keep falling through due to banks asking for more money down. Is this a Utah only thing? 

Definitely not unique to Utah. At least here in Southern California, the story is exactly the same (for most assets). For Landlords who don't have to sell, they're waiting out the storm, so to say. This is especially true for properties without debt. 

Post: Seeking advice on becoming a commercial real estate agent

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35

Hey @Chandler Butler, did you end up getting your license? Did you join a CRE brokerage?

Post: Becoming a Commercial Real Estate Agent now in 2023. Thoughts?

Danny Simard
Pro Member
Posted
  • Real Estate Broker
  • Los Angeles
  • Posts 73
  • Votes 35

The tl;dr is: it depends

At my last property, our brokers were busy as hell. We did, on average, 1 new lease and 1 renewal each month. This was at a class B industrial flex business park in San Diego, about 70 total tenants.

Also in San Diego, one of my office assets was 100% leased with soaring rents, strong lease renewals, and basically everything you could ask for. Meanwhile, one of my current office assets is doing some touring, but no real leasing activity (and we have plenty of vacancy).  

If you wanted to do capital markets for office right now, that's probably not the best plan, at least not in the short term. 

If you wanted to work leasing or capital markets for industrial just about anywhere, it's probably (relatively) easy to find success. 

Capital markets for residential? Kind of a good bet anywhere given the dearth of housing across the US. 

Like with anything, it depends on what you're trying to get into, where it is (Atlanta is a great market!), and your personal cash flow requirements. 

If you do make the switch, talk with multiple successful CRE brokerage teams, and find one where you can join, learn from the team, and support the team while doing so.