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It's Easier to Manage Commercial Real Estate Than a Lot of Residential Real Estate

Everyone knows real estate is a good market to be in. However, there are so many variables to consider before making any serious investments. For example,B residential property management is a much more complicated experience thanB commercial property management. With its compact nature and uniformity, managing dozens, or even hundreds, more rental units can be efficiently handled by a small staff which provide a multitude of additional benefits.

A large portion of employee’s salaries can be offset by offering free or discounted unites in the apartment building. Besides helping lower costs, this also ensures that your staff is on-site virtually 24 hours a day, improving awareness and accountability in many situations. While some employees may still opt to live elsewhere, the advantage to having one or two maintenance men willing to wake at any hour of the night for overtime pay can be critical in both providing a high standard of care for your tenants as well as maintaining the integrity of your brand. Giving the employees some design control can also bring culture to your property’s environment.

If you are checking your options in the South Florida commercial real estate market, contact the Morris Southeast Group before making your next move.

Don't Make These Mistakes When Venturing Into Commercial Real Estate Investments

Commercial real estate investments can be very smart choices … if you avoid some of the most critical errors. Making even one can prevent you from maximizing the return on your investment, but fortunately, all are avoidable if you know what to watch out for before you invest:

  • Know your market. Jumping into a market you don’t understand can have a very negative impact on your investment … maybe even cost you the entire thing. Always, always get to know the local market conditions, or partner with an expert who does have the knowledge you need.
  • Do your due diligence on the property. Each property is unique, and you need to get to know it thoroughly before investing. This is especially true if your commercial real estate investment involves business tenants, as you’ll want to investigate them as well as the structure.
  • Don’t over-extend yourself financially. Get your math right to keep your whole investment on track, and make sure you don’t load the property with more leverage than its cash flow justifies.

For more insights about real estate investing and south Florida commercial real estate investments in particular, reach out to the experts at Morris Southeast Group now.

Understanding Commercial Real Estate Depreciation

Depreciation is a familiar term to many tax filers, but for commercial property owners it can mean big savings. You can deduct the depreciation value in taxes each year that you own the property after 39 years. However, with that depreciation comes depreciation recapture, which occurs when you sell the property.

  • Depreciation b You can deduct what you rent. If itbs an office building, you can take those deductions to reduce your reportable income. So itbs in your best interest to rent out as much of the office space as you can. For investors, itbs an opportunity to buy a property they can use to supplement theirB portfolio.
  • Depreciation Recapture b When you sell your South Florida commercial real estate, you may have to pay a higher capital gains tax. Only the amount of deductions that you took in depreciation will get the higher tax percentage. Anything beyond that stays at the regular rate.

Taking advantage of depreciationB takes balance, butB financial planningB can help. AnB investor looking for commercial properties should have no problem putting depreciation to work. Contact Morris Southeast to get more information about what investments in South FloridaB commercial real estate can do for you.

Reasons to Add a Commercial Real Estate Investment to Your Porfolio

There are is plenty of opportunities to make a significant amount of money in commercial real estate. In fact, commercial real estate has been such a consistent moneymaker over the years that nearly every savvy investor has a portion of their portfolio invested there. Here are three reasons why:

  • Income Generation b The valuation of a commercial real estate property is predicated on its income earning potential. They almost always provide higher, more secure returns than residential properties.
  • Enhanced Diversification b Diversification is the key to long term success and commercial real estate will always be a part of every successful investors portfolio.
  • Lessened Volatility b Commercial real estate is also relatively stable as measured over the past century. Since the leases are paid by operating companies have far more to lose than any single individual and are therefore less likely to default.

For more information on this and other South Florida commercial real estate topics, please visit us at the Morris Southeast Group. You will find us online at morrissoutheastgroup.dsherpa.com or you can reach us directly at 866-930-1426.

Keep Your Employees' Mental Health in Mind When Designing an Office

Most employers donbt think too much about their office space, other than making it functional and relatively comfortable for employees. However, keeping the mental health of your employees in mind when youbre designing a space is essential. Youbll have more productive and happy employees by following these basic tips:

  • Give employees a little bit of private space to do their work in peace. In some offices, that simply means positioning desks and cubicles away from the flow of traffic or where foot traffic is particularly heavy.
  • Pay attention to the lighting and donbt skimp on fixtures. High-quality lighting means a lot when youbre sitting in the same place all day. Make sure task lighting is available as well.
  • Allow employees a place to socialize. Regular breaks make more productive workers that perform better on a frequent basis. Make meeting places plentiful and comfortable.
  • Keep sight lines open by using glass dividers and low walls instead of the traditional carpet-like cubicles you see in offices. This makes employees feel more energized when therebs movement around them.

Contact Morris Southeast for more information and tips when youbre ready to move into new offices. Morris Southest can help you find the perfect space.

Improve Your Office Atmosphere With Good Culture

Many South Florida business owners believe that a great company starts with recruitment. However recruiting the best employees is only the tip of the iceberg. Creating a great company culture that inspires employees to be creative is where real company success stems from. Talking about creating a good company culture and doing the work to attain it may be two different things. Here are some ideas to get your juices flowing.

You don’t have to be a business owner to think like one. Entrepreneurial thinking can happen within companiesB large and small. Give your employees reign over their own projects from start to finish. Doing so gives them ownership of their own success.

Leading your team by example can set the tone for the company’s culture. If you are a positive, up-beat person who focuses on results, your employees will fall into line.

When bringing other people on to your team don’t be afraid to listen to your gut. If the person does not seem like a good fit for your company when you meet them, listen to that instinct. Doing so can save youB lots of wasted time.

For information on South Florida commercial real estate, contact usB right away.

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