MARKET KNOWLEDGE

 Purpose.    The purpose of research is to determine 5 primary factors: 

1.  Condition of the Market.  Will I be conducting my search for space in a Landlord or Tenant’s Market?

2. Ideal Location.  Where should I locate my office? Downtown or Suburban? high-rise or low-rise? north or south of town? office park or free standing facility.? 

3. Price Range.  What is the rental range I can expect to pay for my space?  Are the rates quoted on a full service or a net basis?  How is full service defined in this market?

4. Market Standard Practices.  Operating expense pass throughs?  CAM charges?  Annual rental increases, Common area factors.  Can I expect to run into any surprises or hidden charges because of practices that are generally acceptable in this market as opposed to others?

5. Parking and Fees for Amenities,  Is it standard to pay for parking and the use of amenities in this market?

1. Local Newspapers.  Read the local newspaper’s business section regularly looking specifically for stories related to commercial real estate the market trends, what’s under construction or proposed as well as any upcoming legislation that might effect your move.  Major corporate moves or layoffs that may directly affect the market.  Check out back issues for charts, market research reflecting recent trends, prices and comparisons of properties and sub-markets.

2. Local Business Journals.  Is there a local business journal in the market, if so look  for stories related to the commercial real estate industry.  Research back issues as you would a newspaper looking for charts, articles reflecting trends, and price comparisons of buildings and sub-markets.

3. Local Office Guides.  These publications not only carry valuable tips on hunting for business space and furnishings but they usually list the majority of buildings in the area.  These lists are typically broken down into sub-markets and they supply such information as name of building, size of building, amount of vacancy cost per square foot, contact information and lots of in depth info on a building by building scenario.

4. Local Magazines.  I would recommend checking these out starting about six months prior to a space search, they sometimes carry features about market trends and individuals that are very active and knowledgeable within the market.

5. Economic Development Commission.  The name varies from market to market but this group is charged with the responsibility by the community to attract industry and growth. They should have the most up to date information on the market.  They should also be able to direct you with information regarding tax breaks or incentives, economic development zones and much more regarding the area.  Quite often incentives are made available in the form of tax breaks, cash bonuses, flexible zoning ordinances and more to attract various industries to a particular state, county, city or even specific sub-market.  These incentives are not always exclusive to large firms. 

6. Chamber of Commerce.  Always a good source for general information about an area.  This group would most likely refer you to good sources as well as some of their members in the commercial real estate industry such as brokers, developers and building owners.

7. Local BOMA CHAPTER (Building Owners and Managers Association).  This is a source that can put you in touch with knowledgeable people, i.e. property managers and building owners within the industry.  You should ask about any information they may be able to share as well as a list of members to contact. 

8. Local NAIOP (National Association of Industrial and Office Properties).  Another excellent source that can put you in touch with knowledgeable people within the industry, i.e local commercial brokers, property leasing agents and building owners and developers.  You should ask about any information they too may be able to share as well as a list of members to contact.

9.  Commercial Brokerage Firms.  Most commercial brokerage firms do extensive research on their own markets in order to remain competitive..  This is a perfect opportunity to become acquainted with the brokers in the community.  I would suggest contacting four or five brokerage firms in the market for information.  Ask questions, discuss your needs and gather as much information as you can.  If you should decide to use a commercial broker, this experience will help you make the ultimate decision of who to use based on their knowledge, compatibility and philosophy.  

10.  Co-Star and Loopnet Research Firms.  These are a couple of the best for researching markets all around the country.  For valuable market info on many of the major markets in the country, go on line to either of these firms sites, I’m sure you will find them very helpful 

11.  Building Leasing Agents.  If you have time visit a few properties and discuss the market with some of the areas building leasing agents.  They should not only be knowledgeable about their property, if they’re good they should know their own sub-market intimately.

12.  The Public Library.  Always a good source for newspaper and magazine research, sometimes they even carry local market office studies.