McGinnis Commercial Real Estate Co Blog

Financing real estate occupancy through leasing is a wise investment. Not only does the business enterprise preserve capital for the operation of its business, but many attractive properties become available. The three key features, as they say, of real estate are location, location, and location. Theoretically, all of the best locations are already acquired, and not for sale. However, many of these great locations can be leased, so the organization not only acquires a great location, but preserves capital wisely, as well. McGinnis Commercial Real Estate Company is pleased to announce its representation of McKown Holdings’ property at 30 Old Rudnick Lane, fronting Webbs Lane, in South Dover, Kent County, Delaware. The office space is 6,019 square feet, on the first floor, and is fully improved with offices, conference rooms, and furnishings. The property is ideally located off of South State Street around the corner from U S Route 13 and the South Dover SR 1 Interchange. The rental rate is $15.50 per square foot, plus utilities, maintenance, taxes and insurance. There is more information about this offering on our website. McGinnis Commercial Real Estate Company can accommodate all of your real estate needs.

Leasing real estate for the business enterprise is a wise investment as it preserves capital for the operation of the organization. Purchasing real estate requires a downpayment, as well as closing costs, which can amount to as much as 30 percent of the purchase price of the property. Leasing, alternatively, requires a security deposit and the first monthly rental payment, which is substantially less than the capital requirements of the purchase. By leasing real estate, the business firm is able to apply its capital more wisely. The 905 Office Building at 905 South Governors Avenue is Dover, Kent County, Delaware, is a multi-tenant office building with modern features such as an elevator, broadband telephone and internet capacity, and a great location near BayHealth Medical Center. The building was recently renovated completely. The 905 Building is accessible to all parts of Dover, and all parts of Delaware as Governors Avenue is a major north-south linkage route through Dover. The South Dover Interchange for SR 1 is about one mile south of this property. There is 8,350 square feet available for lease at attractive rates, depending upon your improvements specifications. The space is located on the second floor, with elevator access. The space is currently unfinished, so the business organization has the ability to lay the space out to meet its specific needs. The space can be improved for either general office or professional office. Other tenants in the building include Blue Cross Blue Shield of Delaware, and the Delaware Department of Elections. There is plenty of off-street parking. McGinnis Commercial Real Estate Company has many leasing opportunities throughout Dover and Kent County. Call McGinnis Commercial Real Estate Company for all of your real estate needs.

The goals of commercial property occupancy vary with the goal of the business enterprise. Typically, real estate occupancy is a cost of doing business, just like advertising, telephone and internet usage, salaries and wages, and other expenses. Purchasing real estate ties up capital that could best be used by management to operate the core business of the organization. There are tax advantages to renting real estate, as the rental payments are deductible against the income generated for income tax purposes. The ideal benefit of renting the real estate for the business enterprise is that a huge investment of capital for equity is not required. In this market, equity requirements are a minimum of 20 percent, and typically 25 to 30 percent of purchase price. Then there are closing costs, adding as much as five percent more to the capital requirements. The capital requirements for rental real estate are typically the first monthly rental payment, and a security deposit. Often the improvements required by a tenant can be financed and paid over the term of the lease. The business enterprise then retains capital to operate its business. To illustrate, even real estate brokerage firms are not in the real estate business, they are in the brokerage business, so renting office space provides the optimum use of its capital. McGinnis Commercial Real Estate Company has a number of office lease listings which would accommodate a variety of business needs, such as professional office space requirements for physicians, and general office space requirements for accountants or insurance agents. We also have flex space which includes shop and warehouse areas together with smaller office areas for contractors. McGinnis Commercial Real Estate Company has commercial lease opportunities in every price range, and in every location in the market area. For your office leasing needs, call on McGinnis Commercial Real Estate Company.

Real estate investment, like any investment, involves fundamental theories and techniques to succeed. Most investment vehicles offer return on investment, and return of investment. But in today’s investment market, even return on and of investment is risky. No other type of investment offers as much to the investor as real estate.

The primary advantage in investing in real estate is leverage, in which the investor can use a small portion of his or her capital, and borrow, or leverage the difference in the price. Secondly is income, which is achieved from rental of the property, among other sources, such as vending machines. The third advantage is appreciation, with price growth very nearly assured. While the market conditions current in September, 2009, may cause some doubt about depreciation, real estate prices over the long term always go up. An attractive advantage in real estate investing is tax savings, because interest on your debt is deductible against rental income, operating expensed are deductible, closing costs on the acquisition of the property are amortized over the holding period, and likewise are deductible, and some of the income is sheltered through depreciation.

One investment advantage unique to real estate investment is mortgage reduction, achieved as rental income pays down the debt. It is complicated and very rare when any other investment vehicle can provide the investor the advantage of debt reduction. There are many other types of investments, including bank savings, life insurance, stock market known as equities, bond market known as debt such as treasury securities, junk bonds, and so forth, and tangibles such as art, wine, gemstones, and other similar items. None of these investments have the advantages of the real estate investment.

The ability to invest in real estate provides great flexibility. There are many types of investors, including individuals, partnerships such as general partnerships or limited partnerships, corporations, limited liability companies, and syndicators. Pooling assets so numerous individuals are able to join together to purchase larger properties is easily accomplished.

There are many types of properties, just like there are many industries represented on the stock exchange, including residential, and non – residential. Each of these types further segments into single tenant and multi tenant types of properties. Further still, properties segment into retail, office, industrial, and agricultural.

Finally, the investor can be also be a speculator, meaning the goal no longer lies in income, and tax savings, and even debt reduction, but lies totally in price appreciation. The speculator has a long and notorious reputation in real estate investment history; however, converting vacant land to profits is a perfect representation of the American ingenuity.

Although investment in real estate is illiquid, meaning that property does not quickly convert to cash, the overall yield can be quite higher than the yield achieved in alternative investments, the real estate market is generally more stable than capital markets, and the sum of the advantages of real estate investment should make real estate a part of the investor’s overall portfolio.

McGinnis Commercial Real Estate Company is able to help the real estate investor sort through all of the questions and requirements of investing in real estate. Our company can help the investor match his or her goals with opportunities. In business for over 30 years in the local market area, McGinnis Commercial Real Estate is trained and experienced in real estate investment, and our goal is enable the investor to repeat as our client maintaining a long term relationship. Call us today and we can help you convert your dreams into investment reality.

Many real estate investors do not consider that investment value is maximized through the employment of professional property managers. The professional property manager plays a very important role in the performance of  the real estate investment. The professional property manager can offer a variety of services, and levels of service, in tailoring a fee to meet the needs, and the goals, of the investor. The investor needs to consider that maintenance calls come at all times of the day, even late at night. Property managers who have relationships with maintenance contractors can typically achieve a lower cost for services than the individual investor can. Reactions to market changes will always occur faster with professional property management. So real estate investors will reduce overall costs by adding professional property management, and will increase property values and maximize wealth. McGinnis Property Management has been managing all types of real estate for more than 25 years. We are happy to discuss the real estate investor’s needs and goals, and tailor a fee for specifically for any real estate investor.

Investing in real estate is an important component to any investor’s portfolio. While the real estate market is notoriously under-performing at present, it is the most opportune time to invest. Mortgage rates are historically low. Cap rates, an important measure of investment real estate pricing, are creeping up, lowering prices. So lower prices and lower financing rates equals bargains for the astute investor. Investment real estate comes in many varieties. Retail properties, office properties, industrial properties, even residential properties all offer outstanding opportunities. Downtown Dover even offers mixed – use properties, which include both residential and commercial in one building, offering investors an even broader market for rental opportunities. McGinnis Commercial Real Estate Company offers guidance on investing in all types of properties. A review of our website will illustrate the investment properties we currently offer. And as a member of the MLS, we can assist you in investing in properties offered on the market listed by other brokers.

McGinnis Commercial Real Estate Company specializes in non – residential real estate, however, we broker a wide variety of properties in the local market area, including residential investments. The Raubacher 27 West Loockerman Street Property is unique in that it is a mixed – use property, with commercial us on the ground floor, and multi – family residential use on the second and third floors. This type of property appeals to a broader market of investor because leasing potential crosses two markets. The Downtown Dover location is attractive to residential tenants because they can walk to work, walk to recreation, and walk to entertainment. The commercial component, currently a fully – equipped restaurant, is located close to the government offices of the city and state, and close to the legal community surrounding the Green and world – famous Delaware courts. All property details are contained on the website.

McGinnis Commercial Real Estate Company is proud to announce that we have listed the Braun Properties LLC property located at 429 South Governors Avenue in Dover, Kent County, Delaware,  for sale. This property is unique in that there is a 4,096 square foot, two – story frame office building, and there is also a half – acre vacant site available for expansion of the existing building, or development of a new building. The vacant site fronts Water Street. The office building was renovated in 2007, and has numerous features including zoned HVAC, built – in cabinets and counters, and other such features. We can arrange a showing of this property at your earliest convenience. You can download a property profile for this property under the Office Sale properties tag from the home page.