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By AZ Advisory Team, February 27, 2010 9:00 am

The generation of Americans now between 44 and 62 years old, 76 million of them, collectively known as the baby boomers, make up about 30% of the U.S. population according to the U.S. Census Bureau. They helped shaped America into what it is now. The economic boom of the 1990s, when these baby boomers were 26 to 44 years old and when most were producing income for themselves, created an unprecedented amount of personal wealth in America—currently estimated at more than $33 trillion.

With this, we are now at the forefront of what is expected to be the largest transfer of wealth in American history.  This huge transfer of wealth, estimated to be $40.6 trillion in a 55-year period according to Paul G. Schervish and John J. Havens in a Boston College research, will be a mix of waves of retirements and inheritances spanning three generations surrounding the largest and richest generation in America, the baby boomers.

First, the oldest of the baby boomers are retiring.  A couple of years ago, Kathleen Casey-Kirschling born on January 1, 1946 – the first baby boomer – retires and files for early retirement benefits at 62.  Other millions of baby boomers will be retiring as well in the next 26 years. It won’t be long before they think of transferring their wealth to their heirs.

Stay tuned for the continuation of this post. If you want to receive the entire report, sign up here: AZ Advisory – Powerful Tips in Commercial Real Estate Investing.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 26, 2010 10:31 pm

Negotiating a commercial real estate lease need not be that difficult. As a matter of fact, many landlords and property managers are now recognizing that providing superior tenant service means making lease negotiation process as simple and efficient for tenants as much as possible.  It is important to arrive at a lease contract that meets the needs of tenant and landlord in a smooth and quick fashion as delays over minor details is not beneficial for either party.

Increasingly, landlords are shortening the lease negotiation process through a system of alternate lease clauses that can be used to substitute for standard lease clauses as the situation warrants.  By making the effort to develop “standard” alternative clauses, the landlord’s legal counsel can avoid having to write specific language each time an issue arises.

Tenants, at least initially, need only raise the issue or concern, rather than make specific requests with respect to changing lease language.  This is most easily accomplished by employing a checklist that covers the issues which typically need to be addressed, at least from the tenant’s perspective. By using such a checklist, tenants can quickly review each negotiable clause in the landlord’s standard form lease, with the issues and concerns then brought to the landlord’s attention.

Stay tuned for the continuation of this post. If you want to receive the entire report, sign up here: AZ Advisory – Powerful Tips in Commercial Real Estate Investing.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 26, 2010 10:14 pm

Third Party Development

Hospitals and health care systems have embraced third party ownership and management of real estate, because it can preserve capital resources for acute care needs, eliminate the potential conflicts that arise in the landlord/tenant relationship between hospitals and referring physicians, and minimize the potential legal and regulatory challenges associated with leasing space to referring physicians. High profile transactions to convert existing medical office buildings and other non-core medical real estate to third party ownership and management have focused public attention on monetization over the past few years. Hospitals and systems are now beginning to use third parties to develop and own new medical real estate projects.

This concludes the topic Repositioning to Medical Office.  Take a look at my commercial real estate office listings here and take a look at this medical office in South Miami available for investment acquisition.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 25, 2010 10:24 pm

Alex Zylberglait of Marcus & Millichap is proud to present 6285 Sunset Drive. This ready for occupancy 5,200-square foot medical office building is ideally suited for a small medical practice.

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6285 Sunset Drive lies within an established medical hub just steps from South Miami Hospital (which recently completed its medical office complex), a few blocks from South Dixie Highway, and the Metrorail & bus stations.

This medical office building commands a high visibility location in a heavily traveled section of Sunset Drive. It is in the vibrant city of South Miami which borders the University of Miami main campus and the affluent communities of Coral Gables and Pinecrest.

Because of the unparalleled quality of its location, 6285 Sunset Drive would be a solid investment with significant appreciation potential.

Contact Alex Zylberglait, CCIM, SIOR
Vice President Investments
Director – National Office and Industrial Properties Group

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 25, 2010 5:03 pm

These changing market dynamics will increase demand for medical office space, presenting new opportunities for commercial real estate professionals. Repositioning office space for medical use can be expensive in the short term; however, the long-term value benefits can be substantial. Retrofitting these buildings can run about $80 per square foot to $100 psf and strong management is key as physicians tend to have more maintenance issues due to patient traffic. In addition, higher parking ratios are a difficult hurdle to overcome. Depending on the jurisdiction, medical office parking ratios can be between four to five spaces per 1,000 square feet.

With significant barriers to entry, medical office repositioning projects are geared toward sophisticated investors with a solid management staff as well as an understanding of the demand for this space in a particular market. A building approved and re-zoned as medical office can provide an immediate pop in value similar to that of an approved condominium map for an apartment building. The rental premium created can provide a strong hedge against lagging office rental rates and high market vacancy, since medical practitioners tend to stay put.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services..

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By AZ Advisory Team, February 24, 2010 11:26 pm

Repositioning

Adding value to office assets usually is achieved through improved leasing practices on ailing buildings. While owners and managers can only raise rents as the market allows them, some are seeking tenants whose market rent per square foot exceeds that of the typical office tenant. Repurposing a building into medical office is a top strategy in markets with strong medical demand, such as Florida and Southern California.

As of second-quarter 2007, medical tenants occupied only 4.2 percent of leased office space nationwide, according to CoStar Group. However, U.S. healthcare spending totaled nearly $2 trillion in 2005, or $6,697 per person, a figure that is expected to more than double by 2016, according to the Centers for Medicare and Medicaid Services. In addition, healthcare services are expected to be the fastest-growing office-using employer between 2004 and 2014, according to a recent National Association of Realtors study.  With more than 1.9 million office-using healthcare jobs expected to come online in the next decade, high concentrations of medical office and a rapidly rising population may be a winning combination.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 24, 2010 6:22 pm

The increased amount of care and attention needed for the aging baby boomer population will have a tremendous impact on the health care industry. Consequently, medical office properties may offer a particularly lucrative opportunity for investment.

Medical offices are particularly attractive to doctors because it puts them in close proximity to other medical service providers. Patients also benefit from the centralization of medical offices for the convenience of obtaining a wide range of medical services, such as diagnoses, MRIs and physical therapy all in the same building. Owning and renting out medical office properties can be an appealing and relatively affordable option for investors who wish to get involved in commercial real estate.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 23, 2010 5:37 pm

Alex Zylberglait of Marcus & Millichap is proud to present 11981 Southwest 144th Court, a two-story Class B office building that was built in 2002 of concrete and stucco. The property has approximately 14,700 rentable square feet and will be delivered vacant. The building features upscale finishes. There is ample on-site parking with 50 parking spaces.

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The property is directly across from the Kendall-Tamiami Executive Airport which is one of the busiest airports in Florida, serving corporate, recreational, flight training, and governmental agency activities.

The Kendall area is one of the most densely populated metropolitan areas in Miami-Dade County, creating one of the most diverse cultural mixes that Miami has to offer. It is anticipated that the population of the Kendall area will continue to grow at a healthy pace over the next number of years. The property is minutes from the business centers of South Miami-Dade County and close to Southwest 137th Ave, Krome Ave, the Florida Turnpike and the Don Shula Expressway. The property’s location also provides fast and easy access to the Florida Keys as well as recreational and business activities in Miami and Miami Beach.

Contact Alex Zylberglait, CCIM, SIOR
Vice President Investments
Director – National Office and Industrial Properties Group

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 22, 2010 4:57 pm

Alex Zylberglait ranked no. 1 in the entire nation in the National Office and Industrial Properties Group at Marcus & Millichap for 2009.

Alex Zylberglait is also a finalist for the NAIOP’s (National Association of Industrial and Office Properties) Office Broker of the Year.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, February 19, 2010 11:24 am

Several factors continue to drive the medical office trend. The country’s aging population requires more medical care, and hospitals have been on a building binge for the past five years, spawning development of neighboring medical offices. Physicians and healthcare groups are also moving smaller stand-alone facilities closer to patients in suburban markets.

According to a recent study by Marcus & Millichap, the long-term outlook for the medical office market looks bright. “Once viewed as a higher-risk specialty asset, medical office properties have clearly become main stream for private and institutional investors,” notes the report. “Long-term leases and low tenant turnover, combined with a stable market outlook and advancing medical technology, point to a positive future.”

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.