Leo Nordine

Has Sold Over 5400 Properties Nordine Commercials Nordine Commercials


5 ways to outfit a commercial property for selling

Just like selling a home, doing your homework before releasing a piece of commercial property out into the crowded world of listings increases your chances of successfully negotiating a sale.

Here are a few handy tips that can help you attract the right buyers:

1. Get in touch with a specialist

Involving a third party who specializes in the property type you’re attempting to sell is a very smart move. Chances are, someone who’s experienced has already successfully completed similar transactions, giving your commercial property an instant advantage on the market.

2. Repair strategically

With commercial properties, it’s okay to leave a few minor things unrepaired – but it’s very important to be honest when asked about the property’s maintenance status. Open communication is key – sellers should be able to understand the value of the property but at the same time be upfront about issues like repairs or upgrades. Transparency will ensure a smooth, problem-free transaction, and avoid future misunderstandings.

3. Enhance its appeal

You’ll never know what a commercial property will be used for so your efforts at cosmetic enhancements may prove meaningless to a prospective buyer. The better option is to ensure that the property is thoroughly cleaned.

4. Make sure the roof is in excellent condition

A well-maintained roof puts the seller in a positive light. It shows that a seller cares about the property enough to ensure it’s always in great condition. Just a single leak or minimal visible damage on a roof is enough to lower a potential buyer’s interest.

5. Always have paperwork and documentation ready

A seller must know how much a piece of commercial property makes, and have the necessary documents to prove it. Showing a prospective buyer that you’ve gathered all the important papers ahead of time speaks of your professionalism and puts buyers at ease.

Challenges and benefits of mixed-use buildings

Mixed-use facilities are now commonplace in the commercial real estate market.

A development can be called “mixed use” when it has three or more revenue-generating uses, which can include retail, residential, office, and entertainment, among others.

All the functional parts should also be closely integrated by way of uninterrupted walkable connections.

The upside

Like everything else, however, mixed-use development is not without its own set of advantages and disadvantages.

“A mixed-use center is, in my opinion, a lot more appealing to the marketplace. It’s got that 24/7 feel, where you can walk from your residence and get on the street, and you can go shopping and go to the bar or the restaurant, and you don’t have to get in your car. It’s got a lot more curb appeal.” – Sean Davis, principal at Morris & Ritchie Associates

1. Mixed-use properties are efficient because, as Sean Davis mentioned in the quote above, you can have access to a lot of services in just one setting – so it’s one way to conserve or maximize land resources. Similarly, a mixed-used development presents opportunities for building and energy efficiency , making them friendly to the environment.

2. Reduced long-term maintenance costs are another advantage because of the proximity of uses, including many which are stacked vertically.

3. Uses will evolve thanks to builders and property owners who are coming up with more new ways to utilize the facilities.

The downside

Preventing mixed-use developments from being the perfect residential set up are the following issues:

1. Lack of parking space is a dilemma often encountered by occupants and visitors of a mixed-use facility. From implementation of parking policies to working out the relationship between different spaces and their uses, parking can create quite a headache. Oh, and did we mention that the traffic can get heavy? Yikes.

2. Noise transfer from commercial to residential areas seems like the tradeoff to convenience. It can be problematic especially if a residential unit is located close to a restaurant or a nighttime bar. Ditto for related irritants like cooking smells, cigarette smoke, and visible trash from the commercial component of the development. But like any other problem, there are solutions to these problems.

In the end, however, mixed-use properties show great potential when done right. They are sustainable, efficient, and can enliven any neighborhood.

How to sell commercial property quickly

Selling commercial property is very different from selling homes.

Even if you’re an experienced seller of residential real estate, you’ll quickly discover a new set of challenges that comes with selling commercial properties.

How so?

What to consider when selling commercial property

One of the main differences between selling a house and commercial real estate is the way in which the property is valued.

The income a commercial property generates has a lot to do with how much it’s going to sell for – a consideration absent when it comes to determining the value of a home.

However, potential buyers won’t just take your word for it. You need to show proof of the commercial property’s actual incomes.

Commercial properties also have:

  • Significantly higher appraisal expenses
  • Extra requirements such as environmental reports
  • A different method of financing
  • A different buying audience

Take a moment to think through your selling strategy as well. Will streamlining the process convince buyers that a piece of commercial property is worth pursuing?
A solid strategy increases the chances of selling a commercial property quickly

Handy tips

1. Collate all documents
The majority of buyers these days are extra cautious when it comes to investments. Gathering all the necessary paperwork and documentation demonstrate your conscientiousness as a seller. The documents you have on hand are concrete evidence of the property’s earning potential.

2. Do a bit of clean up
Get to the nooks and crannies of the commercial space to make sure everything’s clean, organized, and in good working condition. Remember not to go overboard and spend too much on renovations – a little landscaping and pressure cleaning should do the trick.

3. Offer a portion of an existing business
If you’re selling a business along with a piece of property, it’s a good idea to offer buyers a portion of the business as part of the deal. You can offer to stick around and continue to manage the business in order to initiate a smoother transition.

How do commercial real estate brokers market their listings?

Selling a commercial space can involve more tedious work compared to marketing residential properties. However, the most successful brokers take it upon themselves to promote their listings as fervidly as possible.

There are many ways to advertise a commercial property. For example, one of the easiest ways to communicate with interested buyers is through the Internet. Anyone who isn’t on the web yet is missing out on so many opportunities every minute.

So, how does a broker effectively market commercial properties online exactly?

Your website is your showroom

In the world of commercial real estate, newspapers and other print media are still the leading source of information for buyers on the lookout for property.

However, according to the report Real Estate Marketing in the Digital Age published just this September, 94 % of millennials and 84 % of baby boomers use real estate websites to look for homes.

So the first step to improving a commercial listing’s presence is to have a website. Once real estate brokers engage in online marketing, they’re already a step ahead of the pack.

A real estate website should not only be informative but also interactive. A commercial property website should include:

  • Information on the real estate broker
  • Detailed information on the properties for sale (type of property, location, size, price, and so on)
  • A “Contact Us” page that makes it tremendously easy for online users to inquire about your properties, including your telephone numbers, a chat or direct messaging facility, your email address, and the street address of your office

While inquiries may not always result in a sale, it’s always nice to interact with prospective clients, who may choose in the future to buy from you.

Real estate brokers can also use newsletters to share updates. These can be sent out by email with the frequency you prefer, including every week, every two weeks, monthly, and so on.

The website also needs to be optimized through keyword usage, quality content, enhanced URLs, and a responsive design. Optimizing your website improves the site’s search rank, traffic, and conversions. The idea is to ensure that your website appears on top of the search results page when people Google for properties that fit the criteria of your real estate.

Social media engages customers

Social media is a great way to reinforce your online presence and engage customers, potential buyers, and business partners.

Millennials and Generation Xers depend not just on the Internet as a resource, but also on social media for answers to anything—including their real estate questions because they trust the opinion of their peers in their social media circles.

Determine which social accounts you’d like to maintain. The list is growing: Facebook, LinkedIn, Instagram, Twitter, YouTube, Pinterest, and so on.

Then ensure that you always have fresh content—updates on Facebook, eye-catching photos on Instagram – to keep people interested. Using social media ups the chances of having your listings noticed.

Commercial real estate is hopping into online marketing; it’s definitely not a fad and it isn’t going away, so don’t get left behind.

More housing construction means more demand for warehouses

It’s common sense: the more houses are ordered for construction, the greater the demand for building materials.

But while the manufacturer of these materials is fixed in one place, construction sites are all over the place.

Thus, there has been a growing need for warehouses all over the US.

More building permits

Warehouses cut the physical distance between demand and supply while keeping the materials safe from to the elements.

Whether a sign of sustained recovery in the housing sector or short-term fad, one thing is clear – the projected demand for light industrial space is supported by the 25.4% increase in building permits issued in May of this year.

Aside from new residential developments, home sales in general have also seen a significant and steady increase since April 2015.

Confidence in the industrial sector

This boost in sales has also inspired confidence in the industrial sector, where investors are being encouraged to look into the warehousing market.

Industrial property experts also expect furniture stores and home products retail chains to make a comeback – which, in turn, engenders a knock-on effect for more industrial materials that need to be warehoused.

These companies are yearning to recover from the losses incurred by e-commerce, which dethroned these businesses overnight by removing the “middleman warehouse” from the equation.

Investing in warehouses

With more housing developments sprouting all over the country, Home Depot and similar businesses—big and small—have rejoined the fray and will need more space to store the mountains of products they need to move faster and nearer the customer.

What experienced investors need now is the right location to set up their light industrial spaces. Once word gets out and new players decide to invest on this market, it would be harder to penetrate.

A word of caution: remember to keep very close tabs on developments in the industrial sector and its sub-markets before jumping in.

Need to know source warehouse locations in LA? Give Nordine Commercial a call at 310-379-8800.

Commercial real estate yields bigger profits

It’s a simple truth that cash flow is generally greater with commercial real estate and the yield is higher per square foot than in residential.

And experts say that now is a good time to invest in such properties.

Here are the top picks of commercial real estate types to invest in, according to a survey conducted by the real estate research firm Situs RERC.

INVEST IN: Industrial warehouses

With an investment condition rating of 7.6, industrial warehouses are entering a golden age in investment, thanks to the rebirth of manufacturing as well as the growth of e-commerce in the United States.

INVEST IN: Office buildings

When we say “invest in office buildings,” we mean invest in office buildings located in central business districts (CBDs) –real estate in these locations has an investment conditions rating of 6.6, according to Situs RERC. National Real Estate Investors adds that office buildings in CBDs currently show robust growth in prices than any other property type. The time is ripe!

INVEST IN: Neighborhood retail

Neighborhood shopping centers, regardless of the current state of the country’s economy, are still in demand because they continue to fulfill the immediate needs of the communities around them. Whether it’s a mixed-use building or a standalone structure, neighborhood retail has earned an investment conditions rating of 6.6.

INVEST IN: Student housing

The reason for the investment conditions rating of 6.5 for student housing is simple – demographics. Student populations are not to be dismissed, and investors are taking note. . You should, too. If you need further convincing about putting your money in student housing, check out this article.


The hospitality sector may have been badly hit in the last economic downturn, but hotels are taking advantage of this grace period to renovate and innovate, in time with the US market’s slow but steady return to shape. Their investment conditions rating? A nice 6.4, according to Situs RERC.

2015 Q2 Commercial Real Estate Market Survey

In line with their mission to distribute comprehensive data to their members, strategists, media, and the consumers, the National Association of REALTORS® has released the results of a market survey covering the second quarterof 2015.

According to NAR president Chris Polychron and the association’s officers, the statistics gathered have been duly qualified, with the following results:


  • 60% of commercial REALTORS® closed a sale
  • 9% rise on sales volume from the Second Quarter of 2014
  • 7% increase on year-over-year sales prices, compared to the previous quarter’s 4% gain
  • Sales transaction values continue to rise, reaching $2 million from last quarter’s $1.7 million.


  • Investment sales for commercial real estate picked-up with a 6.4% quarterly increase and 9.1% hike from the second quarter of 2014.
  • The current market value of apartments sank its cap rate to 6.8%, lowest among all property types. Retail transactions have the highest comparative capitalization rate of 8%. Office and industrial spaces come close at 7.7% and 7.5% respectively. Hotels follow at 7.4%.
  • The general direction of business opportunities are looking at a positive 6.4% rise. The NAR predicts favorable circumstances in the Industrial, Retail, Construction, and Apartments/Multifamily areas.


  • 54% of commercial REALTORS® completed a lease transaction
  • 60% of the commercial market are still under 36-month to 60-month lease terms
  • An average gross lease volume of $629,000 was estimated during this quarter
  • On average, 84% of leased properties are 5,000 square-feet and below in size, same as last quarter’s


  • The increase in employment opportunities caused no wage improvements, weakening confidence in the market
  • Delays in the building departments result in a lack of stability, which causes prices to go up
  • Some small towns are seeing plenty of startups and franchises

To find out about available commercial properties in Los Angeles, contact Leo Nordine at 310-379-880.

Why a listing agent is a must

While some homeowners do well selling their property without an agent, most actually fail.

As much as we’d like to rely on ourselves to perform tasks not rated ”rocket science” by our peers, there really are challenges only field experts tackle to desired outcomes, at prescribed times, and cost.

In real estate, these experts are known as listing agents.

Real estate knowledge

When choosing a listing agent, check their track record. Have they sold a considerable number of properties? Have they been certified by reputable real estate organizations?

Listing agents have been trained to build their network and, as important, be intimately familiar with everything that influences real estate as a community and the trends it follows as an industry.

With that knowledge, a seasoned listing agent can give you the best piece of advice regarding the sale of your property, be it residential or commercial.

Promotion and pricing experts

You’ll be the first to know, for instance, if your commercial space needs certain improvements or what steps to take to add value to your property.

Without the specialist’s eye for detail, you might miss a step or two and end up mispricing your property.

Also, listing agents are constantly on the lookout for bogus inquirers. After they weed those out, you’re ready to meet the serious buyers or renters only.

Wide network

Listing agents are hands on when it comes to giving advice to their clients.

Most specialize on an area, e.g., Los Angeles County, but will connect you to the best people with the same level of service excellence for all your needs outside the areas they cover.

Have a commercial property in LA you want listed? Make your life a whole lot easier by contacting a listing agent.

When you call an expert like Leo Nordine, you can be sure he’ll list your property in no time and make sure it’s priced correctly and peddled to the right kind of buyers.

Commercial real estate trends to look out for

2015 is an exciting time for those involved in commercial real estate because everyone seems to be stepping up in a big way – from real estate firms to landlords, and marketing agencies to tech providers.

Everything seems to be evolving at a rapid pace, and there are all sorts of new creative tools, strategies, and methods just waiting to be harnessed.

Here are some of the top trends in commercial real estate that are slowly but surely changing the game in a big way:

1. Social media as an effective delivery tool

With a seemingly endless stream of new insights and content, social media is proving to be an effective delivery tool for a growing number of marketing teams.

As more millennials involve themselves in real estate, they are showing how everything is becoming increasingly interconnected. With platforms such as LinkedIn being used as resources for colleagues, potential partners and jobs, creating solutions and tackling challenges have become easier.

2. Crowdfunding to raise equity or capital

With the rise of online crowdfunding platforms, consumers have more direct control over their investments. This means investors gain access to better, more relevant information, and the average investor will want to reap the benefits available with private equity real estate.

3. Commercial real estate photography to help you stand out

Thanks to the rising popularity of aerial drones, commercial properties can now be seen and photographed from a host of angles – including views from structures that aren’t built yet but are now possible. This allows commercial real estate marketers to stand out a little better in overcrowded listing sites.

4. Improving technology provides marketers more tools

Technology has given marketers more tools that can help them promote commercial real estate. Everything from advances in 3D software, new listing and data platforms, online space planning tools, and crowdfunding websites have contributed to a more competitive market.

Though many of the new high-tech tools might fail, those that cause a significant impact on the market are bound to drastically change the industry.

The commercial property appraisal process

There are three available means for appraising commercial real estate:

1. The cost approach
2. The sales comparison approach
3. The income capitalization approach

Each approach has distinct advantages, depending on each situation as well as property type.

Let’s take a look at each of the three different approaches:

The cost approach

The cost approach assumes that a property’s value is equal to the cost required to construct the property, or replacement cost. This appraisal method is not commonly used, and requires a comprehensive knowledge of construction and material costs.

The cost approach usually involves four steps:

1. Estimation of a land’s value
2. Estimation of replacement cost, entrepreneur’s profit, and other development costs
3. Estimation of contributory value of improvements excluding all forms of depreciation
4. The addition of land value to the value of improvements in order to estimate market value

The sales comparison/market approach

This method is comparable to the approach used to value residential real estate.

It involves taking a look at recently sold similar properties that belong to the same market area and have the same characteristics.

Once these are identified, they are then compared to the current property in question, and a professional appraiser will than deduct or increase value accordingly. This is usually required for investors looking for conventional financing.

The income capitalization approach

This approach takes into account a property’s current market value along with its potential cash flow.

Many investors seeking a streamlined valuation method use this in order to compare a property’s value and its expected income to other similar properties.

This approach involves analyzing a property’s ability to generate an adequate net annual return on invested capital in order to estimate its value as an asset. Another factor taken into account during this approach is whether there’s a negative relationship between the market value and potential risks with regards to reaching its expected cash flow.