All Forum Posts by: Russ Kitzberger

What you have is a legal issue that you need to capitalize to a business decision.

NOI/Value modeling based on risk analysis is similar to tax strategy. First you get your legal opinions on the likeliness of winning, amount to be won (or saved, lost, etc), and the cost of litigation. Then run a few different financial models with various projections, best case, worst case, and what is most likely. From there the analyst will create a likely scenario and the probable range of noi/value created or lost from the scenarios. That data is used to make a decision.

Most CRE brokers are not REALTORS, they are not held to the REALTOR ethics. Aside from that if you do find a REALTOR, you need to vet them and make sure they are Commercial REALTORS, because you are correct, most REALTORS sell houses, they have NO idea about commercial costs.

A telltale sign of inaptitude is if you are in a major market area and the agent doesn't have their own CoStar subscription. If they can't spend $1k+/- a month on their data sources, they are NOT actively involved in CRE and have limited access to leasing data.


Jake/OP If you find a REALTOR that is in commercial full time, has CoStar and does some leasing; that is a slam dunk, hire that person and pay their retainer to be your advisor.

Go work for a developer in the area of expertise you want to invest in. After 3-7 years you will be ready to go out on your own.

A/B BOMA info; you cannot take a B property and make it an A property in commercial office. "A"  level office require certain qualifications of the surrounding area. You can make a space A level built out space, but you are unlikely to achieve "A" level rents without the BOMA required surrounding businesses and amenities to support the "A" level rents.

Yes, PM'd you. If it doesn't go through; Google me and call my number at the Commercial Real Estate and Business Brokerage Group; KW 7Hills

Refer this to a commercial broker.

NAR Ethics:

Article 11

The services which REALTORS® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.

REALTORS® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/10)

In my area every CRE agent at a large brokerage has a college degree. Many have post graduate training. Other brokers owned businesses which they have sold and have connections, they are usually degreed as well.

Go to college and major in real estate or real estate development then go work for the biggest company you can find that will train you. Intern if you can. Agree with the above, concentrate on a CRE only firm or a large team that only does CRE.

It is very difficult to earn trust from clients in commercial real estate.  Exhibiting competency would be nearly impossible to do until you gain real world knowledge based on solid understanding of financials (accounting and finance that you will learn in undergraduate programs).

Something is amiss there.  

You can hire someone who is a counselor in real estate to explain what happed in the appraisal. Some appraisers do counseling, some CRE professionals do as well.

Helping others with lease agreement is practicing law in most states and requires a law license.

I had a client take a "highly recommended" "bulletproof" lease agreement and used it for a few years until they had a problem and needed to sue a tenant for significant damage to the property.  

They took it to an attorney to advise on how to sue for the damages. He looked over the agreement and told them that one provision was not going to hold up in that local court that would hear the case and because of that provision (seemingly standard language about costs incurred from eviction and/or bringing a lawsuit according to the online "forums" and various "books" advise) the court would probably throw out the entire lease and look very poorly at the owner (LLC) and reduce any award. In addition to that there was a possibility that the magistrate/judge could possibly award damages to the tenant for defending against those provisions.

So, instead of paying $600 (now property $1-2k) upfront for a good draft lease, total spend was $500 to be told the lease was bad, another $600 for a new lease, and lost $5-10k in damage reimbursement.  The "bulletproof" lease turned out to be a shooting target for any decent tenant attorney.

Residential and commercial leases are completely different. Usually attorneys are good at one or the other.

MAJOR ECONOMIC DEVELOPMENT WINS in the past decade; 

Ohio was setup for success by HUGE new projects by the economic development of the state over the past decade. They are just beginning to come online in the next 2-10 years.  

There are reasons that the huge projects decided to locate here, but the fact is that there is major tailwinds coming from the projects and investors that understand future demand are choosing to place $ in Ohio (as well as parts of KY, IN, and PA).

Russ Kitzberger

It isn't really commercial real estate question, that is a car wash business operations question: try

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