Money Matters invited Bill Himmelstein on their podcast to share his experiences in starting his own business, as well as divulging tips to young people on how to advance in the industry. You can listen to the podcast here.
Listing a property for the highest possible price may seem like the best course of action, but more often than not it will deter buyers and negatively affect the final sale price. Establishing the price in line with comparable properties in the area, or slightly lower, will help move the property faster with less cost to the seller.
Silent Expenses
Rather than focusing on the final sale price, keep in mind the cost of NOT selling the property. When a listing sits on the market for months, it accrues ongoing caring costs like maintenance, property taxes, rent, etc. Holding out for a higher sale price can actually net a lower gain in the end. There can be a heavy cost to owning a property.
Timing is Everything
Identifying the right buyer is more than finding who wants to pay the most. It’s also about moving the property in a timely manner. When presented with a purchaser who wants to buy now but at a lower price than someone who wants to wait six months but at a higher price, it can be more beneficial to sell sooner than to hold out for more money. If you wait for the buyer with the longer timeline, you’re accruing costs the entire time. Additionally, it’s important to remember there’s no guarantee the potential sale won’t fall through.
Best Way to Maximize Value
Selling a property can become quite complicated, and most business owners don’t have enough time to dedicate to the process. To get the most value out of the deal, it’s recommended to enlist the services of an experienced commercial real estate broker. These professionals possess market knowledge and experience to help sell a property for the best price in the shortest amount of time.
Pricing the property correctly saves time, which saves money in the long run. Remember to stay informed on every aspect of the deal, from pricing to concession, as this will ensure you’re comfortable with your sale.
Barry Moltz, host of Business Insanity Talk Radio, invited Bill Himmelstein onto the show to discuss the wildly popular open office design trend. Follow the link to listen to the segment!
Business News Daily asked Bill Himmelstein about the effectiveness of office designs for small companies. While many small business owners assume that open offices are the top choice for all workers today, it may cause issues in some organizations.
You can read Bill Himmelstein’s commentary here.
Conversations about what future employees want out of office design are no longer just about Millennials. Instead, the focus has changed to the newest members of the workforce: Generation Z. Corporations must begin to think about their future employee’s work styles to help them and their businesses succeed. Here are a few things companies need to consider to cater to the next generation’s office design preferences.
Acoustic Control and Privacy
Gen Z is competitive and determined, which means they work well when given designated areas of privacy for phone calls, meetings or deep focus work. In fact, roughly eight percent of the incoming generation wants an open office design, despite its popularity. (Likely due to the lack of privacy in a potentially disruptive environment.) While collaboration is still important, finding enough privacy to be able to complete work without distractions from colleagues or surroundings is a priority.
Natural Light
Daylight has been found to be the number one natural feature desired in workspaces, and it is vital for all employees, especially Gen Z. Designs that increase the amount of natural light promotes both health and work potential. Several studies indicate that employees who sit next to windows receive a more restful night of sleep than those who do not. Moving common areas next to windows with the most light, rather than containing light to private rooms, allows for maximum exposure for employees.
Financial and Mental Wellness Programs
Generation Z is mindful of what constitutes a healthy employer-employee relationship, which means they gravitate toward organizations that care about their workforce. Since student loan debt is a major focus for this generation, implementing programs that offer financial guidance will be a significant draw. Additionally, mental wellness initiatives will directly impact employee happiness and productivity, as well as attract new talent.
With the new generation comes new trends. Since the next workforce generation is almost here, corporations need to begin preparations now to remain ahead of the trends. Companies that fall behind the trends will lose out on the next wave of talent.
The April executives networking events brought together many new entrepreneurs to grow their networks and walk away with tangible knowledge. The Executives Breakfast and Luncheon created a convenient environment for entrepreneurs to offer valuable advice and build strategic connections.
At the Executives Breakfast, guests were prompted with the question: What are your best practices surrounding networking? Here are a few of the many responses:
Morrie Elstein, Vice President, Cendrowski Corporate Advisors: Take the high road and become a trusted partner. Everyone is always thinking about how to grow their business, and who their next client will be. Separate yourself by offering to help them grow their company. “How can I help you grow your business?”
Mark Meyer, President, ICI Staffing/E&M Development: Follow through on what you say you’re going to do, as it helps build your reputation and credibility. Also, reconnect with those who have supported you in the past. He jokingly added, “Attach yourself to Bill Himmelstein’s hip!”
Bill Himmelstein offered another discussion question at the Executives Luncheon: Most pivotal experience that has changed you and shaped the way you do business? Here are a few of their responses:
Dan Porcaro, CEO, PSM Partners: Listened to the CEO of the company who had a formula for integrating companies with an 80/20 rule. Fire 75% of clients and then over serve your current clients. About 90% of revenue comes from the top 25% of clients. Focus assets on the most essential revenue streams.
Joanna Sobran, CEO, MXOtech: Read the Pumpkin Plan. If you fill your land with lots of little pumpkins, then the big ones will have no room to grow.
Thank you to all who attended!
If you’re a business owner with 20+ employees and are interested in attending future TAG events, please email Bill Himmelstein at Bill@TagCommercialBroker.com.
TAG Executives Breakfast Guest List
Bruce Billmeyer, Partner, BCU Risk Advisors
Andrew Boron, President, Clear Spring
Steve Brown, CEO, Stratego Partners
Harry Cendrowski, CEO, Cendrowski Corporate Advisors
Jake Dayan, CEO, Community Tax
Morrie Elstein, Vice President, Cendrowski Corporate Advisors
Dave Feder, Principal, Office Revolution
Jon Fieldman, Managing Partner, Fieldman Law Group
Ben Fornell & Mike Dawson, Co Founder & CEO, Shurpa, Inc.
Keith Glantz, President, Glantz Design
Kevin Krumm, CEO, Objective Paradigm
Josh Lucas-Falk, Managing Director, Moment
Ben Olson, Managing Director, Forrest Capital Management
Mike O’Meara, CEO, O’Meara Capital Group
Paul Pagel, CEO, 8th Light
John Posner, CEO, Harrison & Held
Victoria Rock, CEO, Victoria Legal & Corporate Services
Joanna Sobran, CEO, MXO Tech
Craig Stout, CEO, Stout Risius Ross
Jon Talty, Chairman & CEO, OKW Architects
Robert R. Topping, CFA, CEO, Topping Capital
Ivan Vislavskiy, CEO, Comrade Web Agency
Rob Wilson, President, The Wilson Companies
Nick Zagotta, Managing Partner, Roberts McGivney Zagotta
TAG Executives Luncheon Guest List
Jeff Asperger- Meltzer, Purtille and Stelle, LLC
Daniel R. Bryant- Chief Executive Officer Sheridan Road Financial, LLC
Elizabeth Colón – President and CEO of Metaphrasis Language & Cultural Solutions
Zak Dabbas- Co Founder & CEO of Punchkick Interactive
Morrie Elstein
Slava Ruderman- President of Onward Technologies
Donna Salvatore- CEO Magalytics
Marne Smiley- CEO Bumper Lanes
Karen Todd- Principal Aurore Financial Group
Ryan Ventura- CEO of VEO Solutions
When moving to a new office space, there is quite a bit to consider to ensure the process goes smoothly. One area that often gets overlooked is transition timing and lease overlap. However, this is a key point to be aware of, as a disruption or delay in the build out process can mean operating without an office space for an unknown period of time.
Before the office packing begins, verify the new space will be ready when you need it. Check in with the landlord regularly to ensure the process is moving forward at the agreed upon pace. Internal processes – especially if there is construction involved – can take longer than originally anticipated, which is why an established and realistic timeline is crucial.
It is not unreasonable to establish consequences should the space not be delivered when promised. This will need to be written into the initial Letter of Intent and confirmed to be in the lease prior to signing. If key milestones in the buildout process are not met, then the incoming tenant should receive free rent, a push back on the commencement date, compensatory damages or other lease concessions.
In addition to including consequences in the contract, the tenant should reach out to their current landlord to prepare for the worst case scenario. Create a contract with the current landlord for a month-to-month lease just in case the new space is not ready in time. This allows for peace of mind with the business, as you won’t be left without a space in which to operate.
Landlords traditionally prefer to use their own recommended vendors when it comes to space renovations or construction. While they may prefer to work with contractors they know and trust, too often the reason they restrict outside work is because they receive a portion of the costs. However, this makes the landlord more accountable, which makes contract negotiations even more important. A licensed broker will know how to verify the landlord’s quotes and ask for their itemized breakdown of the associated costs. Additionally, good brokers will have their own set of preferred vendors who can review the quote to ensure it is accurate.
As a general rule, avoid moving spaces more than one month in advance, as it often makes no financial sense to leave the currently leased space to move into the new one early. Despite the free rent of moving in early, the old space is still accruing rental costs. Ideally, move into the new space around one month in advance to allow for a seamless transition.
Insightful discussions bloomed at the Tenant Advisory Group Executives Breakfast and Luncheon in March. At each of these events, entrepreneurs offered valuable advice prompted by a discussion question led by Bill Himmelstein.
At the Executives Breakfast, guests were asked: How do you help your employees be more successful? Here are a few of the many responses.
Jeff Bartelt, CEO, MidwestHR: You should communicate your vision for your company. Employees have a personal vision of where they want to be, so it’s important to align your visions and make sure to share goals and values at the beginning.
Steve Krull, CEO & Co-Founder, BeFoundOnline: A company’s culture can’t be contrived. You must put your values on the wall and wear them on your sleeve, as well as follow through on your promises. Being successful means believing in yourself and the people around you.
Entrepreneurs in attendance at the Executives Luncheon shared their advice based on the discussion question: What does success look like to you? Here are a few of their responses.
Steve Gustafson, Managing Partner, Gould & Ratner: It’s about creating ongoing relationships. The key to success is to be a long-term team member for their clients.
Rob Sprague, COO, Smart Lift: For a company to be profitable, build a healthy culture that develops people to be successful in business and life. Lead from your strengths and outsource your weaknesses.
Thank you to all who attended!
If you’re a business owner with 20+ employees and are interested in attending future TAG events, please email Bill Himmelstein at Bill@TagCommercialBroker.com.
TAG Executives Breakfast Guest List
Jeff Bartelt, CEO, MidwestHR
Martha Bell, Principal, Tilton, Kelly & Bell
Bruce Billmeyer, Partner, BCU Risk Advisors
Richard Carden, Managing Partner, MBHB
Bob Domenz, CEO, Avenue
Brad Farris, CEO, Anchor Advisors
Steve Gustafson, Managing Partner, Gould & Ratner
William D. Himmelstein, CCIM, CNE, Founder & CEO, Tenant Advisory Group, LLC
Rhonda Jensen, President, Jensen Litigation Services
Steve Krull, CEO & Co-Founder, BeFoundOnline
Joe Liberty, COO, Better Business Planning
Larry Marin, Vice President, Near North National Title
Chris Miller, Managing Partner, Kelley Kronenberg
John Naughton, Vice President, Juneau Associates
Adriano Pedrelli, Impact Polymer LLC
Mark Rickmeier, CEO, Table XI
Ken Thompson, Managing Director, Level X Consulting
Keith Verisario, President, Wine Sergi Insurance
Haskel Weiss, President, TWG Benefits
Jonathan Weiss, Managing Partner, Levin Ginsburg
TAG Executives Luncheon Guest List
Joe Alioto, Managing Director, Madison Street Capital
Stuart Baum, President, Large Pond
Laurel Bellows, Managing Partner, Bellows Law Group
David Diamond, Managing Partner, Kutchins, Robins & Diamond
Morrie Elstein, Vice President, Cendrowski Corporate Advisors
Steve Gustafson, Managing Partner, Gould & Ratner
William D. Himmelstein, CCIM, CNE, Founder & CEO, Tenant Advisory Group, LLC
Tom Madura, Controller, Carroll Seating Company
Jordan Matyas, CEO, 1818 Advocacy Group
Dan Porcaro, CEO, PSM Partners
Jonathan Rothstein, SVP, MB Financial Bank
Mohammed Saleem, President, AES Services
Joanna Sobran, CEO, MXOtech
Rob Sprague, COO, Smart Lift
Jordan Weiner, President, Internet Consulting Inc
Tenant Advisory Group’s own Bill Himmelstein Bill Himmelstein was invited on WGN Radio’s Startup Showcase to talk about TAG and the commercial real estate industry.
You can listen to the full interviewhere.
The Clybourn Corridor has been the focus of many discussions lately, as well as a primary target for major developers like R2 Developments and Sterling Bay. The stretch of land was once an industrial hotbed, but now it is experiencing a renaissance as the area transforms from industrial parks to retail, office and residential buildings. As the Clybourn Corridor continues to develop, it leads to an interesting question: does it have what it takes to become a top Chicago neighborhood?
Pro: Cheap Land
Cheaper land now translates to lower rents in the long run. This is extremely attractive for developers and businesses seeking relief in rent prices without being too far removed from bustling downtown Chicago. Clybourn offers a great location without the inflation.
Pro: Local Talent
The Clybourn Corridor is conveniently located near the popular neighborhoods where young, tech-savvy talent want to live. C.H. Robinson, a third party logistics and supply chain management provider, is hoping to take advantage of this central location by building its new headquarters in the Clybourn Corridor. By taking livability into account, as well as building a brand new headquarters with modern amenities, C.H. Robinson has positioned itself to win over Millennial and Gen Z talent.
Pro: Well-Connected Landlords
Many businesses in Lincoln Park, Old Town and River North find themselves stuck with inexperienced landlords from small- and medium-sized leasing companies who don’t have many benefits to offer their tenants. As large leasing groups like R2 and Sterling Bay moving into the area, these local businesses know they’ll benefit greatly from the high-quality service and negotiation possibilities these expert landlords consider standard in their business dealings.
Pro: Tons of Hype
The Clybourn Corridor is already making a name for itself with the redevelopment of the Finkl & Son’s steel plant, the C.H. Robinson headquarters, the rapid purchasing of land and many other projects on the horizon. Additionally, the transformation of the corridor is being fueled by the City of Chicago changing the area’s zoning restrictions to allow residential buildings, as well as the amenities offered in nearby neighborhoods and along the corridor itself.
The Clybourn Corridor has all the markings of a popular neighborhood: big-name developers, an influx of businesses, popular shopping centers, restaurants and the abundance of entertainment attractions, such as New City. While the potential exists, the area is still in the early stages of development. The Clybourn Corridor is a place businesses should watch closely as it continues to mature.
