HOW DO I FIND A PROPERTY?
Find a Property
Find any property available for sale or lease in Indiana on the XPLOR LISTINGS page. Input specific user needs or conduct a general search!
WHERE IS THE XPLOR OFFICE?
127 W Berry Street
Suite 700
Fort Wayne, IN 46802
Our office is located in the heart of Downtown Fort Wayne on the 7th floor of the STAR Building. Come visit us today!
HOW DO I TALK TO SOMEONE?
(260) 438-3699
If you want to speak to a person, give our office a call or visit our TEAM PAGE where full contact details of everyone on our team is available.
HOW TO GET NEW LISTINGS ALERTS?
Stay in the loop with emails about new listings, market insight, and recent transactions! We promise to only send the most important email!
TOP 10 MOST ASKED QUESTIONS
Commercial real estate, also known as commercial property, is real property used for business purposes rather than as a private residence or for general living. This includes offices, store front or shops, industrial purposes, rentals such as apartments, and special uses like churches or schools.
Hiring a commercial real estate broker can save you time and money due to all of the complex nuances that dictate how commercial properties may be used. You know you have a good real estate agent if they provide clear communication, they understand the total cost of the transaction, and will negotiate on your behalf to best meet your financial goals and bottom-line. With the evolving landscape of the real estate industry you will want a trusted commercial real estate professional to conduct a thorough due diligence period, mitigate liabilities, and conduct a closing that keeps you in mind while meeting the demands of a smooth transfer of ownership.
A full-service commercial real estate brokerage office provides expertise in real estate development, investment, management, maintenance, sales, and leasing in all property types including industrial, office, retail, land, multifamily, and special-use. These types of firms are able to answer all questions you have relating to commercial real estate.
There is no definitive way of knowing if you should buy or rent a commercial space to operate out of. Until an official cash-flow analysis is completed, user needs can’t fully be understood to best align you for the future. However, below are a few things to keep in mind as you consider all options. The upfront cost of buying commercial real estate far outweigh a standard lease; however, a purchase does end up costing less in the long run. While considering if owning is a better choice for your current situation, think about your business’s goals, access to capital, projected growth, and cash-flow in the event of an economic recession or pandemic. A trusted commercial real estate agent is able to help discuss scenarios for you to consider and offer sound advice when making such large financial decision.
As with any sound investment decision, establishing a team of seasoned professionals is the first step toward successfully investing in your first piece of commercial real estate. The next step will be to identify motivation behind your decision. To understand why you want to invest in commercial real estate will assist in knowing what product type will best suit your future goals. The third step will be to align financing. Commercial real estate properties sell at higher purchase prices and often require substantial up-front costs. Ensuring you have adequate financing and cash is essential for unknowns. Lastly, if you are a seasoned portfolio holder or a first-time real estate investor, prepare yourself by having the right systems in place prior to closing. A trusted commercial real estate agent is able to advise through all steps involved in the long and exhaustive process from the search to active ownership. Their job is to save you time and money in the long run by mitigating surprises and providing resources to keep costs down.
The most basic answer is, freedom and money. A Property Manager saves you time by handling all day-to-day tasks including fielding tenant questions and background screens, prospecting to fill empty spaces, collecting rent and pursuing evictions, handling maintenance calls and repairs, coordinating contractors, and so much more, so you can focus your energy on other endeavors.
A Manager also saves you money by balancing budgets, finding cost saving alternatives, utilizing community connections for competitive bidding, processing CAM reconciliations, enforcing lease provisions, and improving efficiencies. While there is a monthly expense to hire a property manager, often times owners will pass that expense back to the tenants via CAM charges.
Your time is valuable and so is your investment. Allowing a Property Manager to handle tedious day-to-day operations increases your asset’s value and opens the door for you to have more time. A seasoned manager will be the best investment you give yourself and your property.
A real estate agent is an individual licensed with the state and has completed required courses and exams, applications, and paid a licensing fee to the State of Indiana. A commercial real estate agent, also known as “Commercial Broker”, is a licensed real estate professional who specializes in the transfer of commercial real estate property types. Commercial agents often complete further training to understand the complexities of the commercial real estate industry.
An assessment of business use or purpose, number of employees, and growth expectations are a good start to determining space requirements. When looking at office space, take the number of employees and multiply it by 250, this will roughly estimate square footage needs for personnel. However, this equation is just for office use – this does not include reception area, break room, board room, coat closets, OSHA standard restrooms, warehouse, storage, etc. A trusted commercial real estate professional will be able to best assist you in addressing size needs and what will best suit your business’ future.
The best way to begin the leasing (or renting) process is to create a checklist of needs vs. wants. The checklist should include items such as:
– Realistic monthly budget
– Size requirement
– Move-in timeline
– Desired area
– Desired client make-up
– Term or length of lease
– Space aesthetics
– Staff accessibility
Once these items have been addressed, a commercial real estate agent will be able to help you do a market search for properties that lay within your criteria.
There are endless factors that go into determining the worth of a property. To better understand the market value of a property, or an appropriate price your property would be able to sell for, the professionals at Xplor will gladly conduct a Market Valuation. A Market Valuation is a comprehensive assessment of factors that impact the value of real estate in the market include, but are not limited to:
– Recent sales of similar properties
– Income and expense of the real estate
– Cost new or any improvements and their condition
– Location, age and condition, utility
Once concluded, a member of our team will review the findings with you and walk you through the process of either listing your property or suggesting improvements to increase marketable value. A Market Valuation is not a formal appraisal. Only a Licensed Appraiser® is able to determine “Appraised Value”. Xplor Commercial recommends using The Worden Group for your commercial property appraisal needs.
The State of Indiana requires all real estate professionals to hold an active Real Estate Broker License. This is attained by completing state required courses and exams, submitting licensure applications, and paying a license fee. Beyond holding a license, we recommend visiting the Indiana Commercial Board of Realtors website to learn more about the industry, best practices, and how to successfully launch a career as a commercial real estate broker in the State of Indiana.
If you currently hold a real estate license and are considering a career in commercial real estate, we welcome you to contact the Xplor Commercial Real Estate office. Our team is always looking for motivated individuals who are ready to take the next step toward a challenging, yet highly rewarding, career in commercial real estate.
COMMERCIAL REAL ESTATE GLOSSARY OF TERMS
Compiled by the National Association of Realtors®, here is a comprehensive list of definitions and terms related to commercial real estate.
ACQUISITION COST
Incidental expenses with securing ownership of the property such as broker commissions, mortgage fees, professional fees, governmental fees, etc.
BUILD-TO-SUIT
A commercial property developed specifically for a single end user to occupy and use.
CONSTRUCTION COST
Expenses incurred for the actual construction of structures, such as labor and material.
DEVELOPMENT COST
Fees and expenses with the planning, creation, and execution of the development. This includes site prep, permits, infrastructure, architectural and engineering assistance, legal expenses, etc. DUE DILIGENCE The process of examining a property, related documents, and procedures conducted by or for the potential lender or purchaser to reduce risk. Applying a consistent standard of inspection and investigation one can determine if the actual conditions do or do not reflect the information as represented.
GROSS DEVELOPMENT VALUE
A performance metric which analyses the capital expended while developing against the future market value of the final developed property.
IMPROVED LAND
Any raw piece of land that infrastructure has been installed.
LAND COST
The amount paid by the developer for the property where development is intended.
TAX INCREMENT FINANCING (TIF)
A TIF is a subsidy received by refunding or diverting direct paid taxes, or consumer paid taxes, to pay for redevelopment in a “TIF DISTRICT”, or a city designated area deeming in need of redeveloped.
UNIMPROVED LAND
Raw land in its natural state without any improvements.
1031 EXCHANGE
Utilizing Section 1031 of the United States Internal Revenue Code, this is an investment strategy to scale an investment portfolio. It is done by deferring paying taxes on a real estate sale if you re-invest the profits in another property, or real estate portfolio, of equal or greater value.
CAPITALIZATION RATE (CAP RATE)
A CAP Rate is a percentage calculated by dividing net operating income by the purchase price. The percentage evaluates the risk level of a commercial real estate investment. The lower the percentage the safer the investment.
CASH FLOW
A calculation to determine monthly profits for an investment property. This is calculated by subtracting operating expenses (including loan payments and financing terms) from rental income.
CASH-ON-CASH RETURN
A ratio measuring yearly return by dividing actual cash invested from annual pre-tax profits. This ratio does not consider benefits beyond real estate profits such as tax incentives, capital, and property appreciation.
DISTRESSED ASSET
This is a property that is priced below market value typically due to underperformance as a result of mismanagement, deterioration, or short-term complications that are out of the owner’s control.
INTERNAL RATE OF RETURN (IRR)
A complex calculation used to measure potential profits over the lifetime of a commercial real estate investment. The higher the percentage, the better the investment’s profitability.
MODERN PORTFOLIO THEORY
A real estate investment strategy to maximize return and minimize risk by diversifying real estate holdings across all property types and markets. This strategy is used to protect the performance of a portfolio if a property underperforms due to changing market conditions.
NET OPERATING INCOME (NOI)
NOI measures a property’s potential profitability and is required to calculate CAP Rate. It is calculated by subtracting operating expenses from estimated revenue; excluding mortgage payments and financing terms.
ASSET MANAGEMENT
Monitoring and executing strategic adjustments to improve value, mitigate risks, streamline operations, reduce expenses, increase cash flow, and improve long-term performance of a property.
ASSET PERFORMANCE
The overall function or investment return of a commercial real estate property.
ASSET OR PORTFOLIO VALUATION
A process to determine the economic value of a real estate property or portfolio. Valuation may be an appraisal from a Certified Appraiser® or market valuation utilizing one, or a combination of, the Income Approach, Sales Comparison Approach, or Cost Approach conducted by a licensed real estate professional.
LOAN OR MORTGAGE VALUE
Value of a property recognized by a lender when securing a loan.
MARKET BENCHMARK
Analyzing key performance indicators for a property against a standard set of characteristics. This is done to determine proficiencies and inefficiencies when transacting real estate.
MARKET INSIGHT
Deep analysis of the commercial real estate industry to discover relevant, actionable trends or to reveal previously unrealized factors.
PERFORMANCE TRACKING
Monitoring quantifiable measurements to assess the performance of a property. This can include monitoring CAP, NOI, sale or lease leads, listing visibility, and so much more.
PROPERTY MANAGEMENT
Daily oversight of a commercial real estate property by a third-party professional most commonly known as a Property Manager.
INVESTMENT PORTFOLIO
A collection of real estate properties owned by an individual, or group, for a specific financial goal.
PROPERTY TYPE The specific category of a commercial real estate property to help determine use. The four most common are: Office, Retail, Industrial, and Land. Additional types include special use, multifamily, hotel and hospitality, flex, and mixed use.
BUILDING CLASS
Quality rating of a building based on condition, location, and amenities. Three classes include Class A, Class B, and Class C being the lowest rating.
DUE DILIGENCE
The process of research and analysis of a property, related documents, and historical data conducted to reveal, reduce, and mitigate risk.
EARNEST MONEY
A deposit made to a seller to express a buyer’s motivation.
FINANCING
Also known as a, commercial loan, this is financing in the form of a mortgage used in the purchase of commercial real estate. The loans come in varying forms and terms set by a lender.
LETTER OF INTENT (LOI)
A letter sent from a motivated party outlining the terms of a deal and serves as an informal, non-binding, non-legal agreement.
LIST PRICE
Price of a property advertised for purposes of strategic marketing.
PURCHASE AGREEMENT
A legally binding contract that governs the terms and conditions for the sale of a property from one party to another.
PURCHASE PRICE
The actual monetary amount paid in the purchase of a commercial real estate property.
VACANCY RATE
The percentage of unoccupied space or units in a commercial building available for rent at any particular point in time.
BASE RENT
Fixed, minimum monthly rate to lease a space usually expressed in a per square foot or monthly amount.
COMMON AREA MAINTENANCE (CAM)
Amount paid, in addition to base rent, for the maintenance of non-exclusive areas used by all tenants such as utilities, parking lot maintenance, snow removal, and day-to-day operations.
DELIVERY CONDITIONS
Condition of leased premises when tenant takes possession or at lease commencement.
EXCLUSIVE USE PROVISION
Typically seen in a retail setting, these provisions restrict specified uses to minimize competition at direct premises.
FULL SERVICE GROSS LEASE
A lease structure where a tenant pays a base rent and the landlord pays for all other expenses.
LEASE STRUCTURE
Conditions of payment for the contractual use of a commercial real estate property or space for a certain period of time.
MODIFIED GROSS LEASE
A lease structure where the tenant pays a base rent and shares certain expenses with the landlord.
RENEWAL OPTION
Outlined terms for the continuation of a lease beyond the original lease term.
RENT ESCALATION CLAUSE
Lease provision outlining percent of increase to base rent realized either annually or during renewal options.
SUBLEASE
A contractual prevision where an active tenant leases their space to another party while remaining the responsible party on the original lease agreement.
SECOND GENERATION
Leasable premises previously built out to suit the needs of the prior tenant including ceilings, HVAC, walls, plumbing, electrical, etc.
TENANT IMPROVEMENT (TI)
Customized change to leased premises to satisfy the specific use of a tenant. Typically paid by the tenant, TI allowance is a negotiable sum of money landlords may give tenants to use toward construction costs.
WHITE BOX /SHELL CONDITION
Condition of a leasable space that has had minimal finishes. Often times the property will have concrete floors, minimal utility fixtures, and unpainted sheetrock walls.