Our Sister Real Estate Blog is up and operational!

Monocle Real Estate Services is expanding, and in order to fill our need, we have had to put together another commercial real estate blog, which covers other areas and availabilities in Los Angeles!

Enjoy!

1500 SF Office Space - Marina del Rey

This piece of Marina del Rey real estate is a bit dated, but its proximity to the beach more than makes up for it! Convenient location — $4.25 / SF

For your Los Angeles commercial real estate needs, visit us at Monocle Real Estate.

Wilshire Corridor Office Space available – 3,000 SF @ $2.50 / SF

This impressive office offering is located on the 18th floor of a very prestigious highrise in the Wilshire corridor. Breathtaking views of West Los Angeles, and the Pacific Ocean. This price is very resonable, so you are going to want to act quickly!

For more information on this listing, or if you are looking for a Los Angeles commercial real estate agent, please visit our website.

Commercial Real Estate for Beginners: Leasing Commissions

Everyone knows how regular real estate agent commissions work: the seller agrees to pay a certain percentage of the sales price (normally around 6%), which, in the event of a sale, is due at closing, and will be split evenly with the buyer’s broker. If there is no buyer’s broker, then the original broker keeps all 6%.

But what about leasing commissions? Who pays the brokers, and how much?

The answer is that it is pretty similar, with a few notable differences. The landlord agrees to pay a certain percentage (same sort of range), which will be shared evenly with the tenant’s representation. However, instead of being based on the price of the building, it is based on the total aggregate rent for the duration of the agreed-upon lease. So if, for example, a tenant agrees to pay $1000 / month, for 3 years, the commission would be paid on the total amount the tenant WILL pay for the entire lease, or $1,000 x 12 months x 3 years = $36,000.

There also a few rules. Leasing commissions do not include any rights to extend or options (which will be made, commission free.) They also do not see any money spent on tenant improvements, or on concessions given by the landlord (like, for example, free rent.)

Pretty straight-forward, but I figure it is a useful thing for people to know.

For more information on commercial real estate, or if you are looking for listings, please visit our Los Angeles commercial real estate site.

Commercial Real Estate for Beginners: What a Broker Can’t (or Shouldn’t) Do

Well, I will consider this venting, but this is actually very useful — there are many things that people in the commercial real estate (and real estate) world should know that brokers cannot, or at least legally should not, do:

-They are not CPAs — they cannot give tax advice. Remember when I gave that caveat about 1031s? That’s because I am not a certified CPA (nor are nearly all brokers), and therefore we cannot give tax advice directly. Of course, it is a gray line — because we can make you aware of certain information, and advise you to go see a CPA to learn more about it, but if you choose not to do it, it is not our fault.

-We can give law advice either. We are not lawyers. Technically, we should not even be writing up offers and contracts (though we normally do), because we are supposed to only “advise” and we cannot provide you with the same level of protection that a real estate lawyer can.

-We can’t make sellers buy your property. Many people blame the agent if their property isn’t selling (and you know what, a lot of time they are right), but many times, it is because the owner is unwilling to make the price match the market demand. No matter what amount of money they put into marketing, brokers cannot make buyers buy the property.

-We can’t lie to you, or to anyone else. …I know, sit back down — shocking, right? Actually, we are legally obligated to provide “complete disclosure about any physical or material information regarding a real estate transaction.” That means no lying, and in fact, no abstaining, either.

-We can’t all call ourselves “brokers.” This is a touchy one, because people tend to use the words agent and broker interchangeably. I will get into more later, but essentially, not all agents that call themselves brokers are in fact brokers — they are real estate agents, or salespeople. A broker’s license requires a 4-yr college degree (or similar experience), and about 4 times more real estate education, and a much harder exam.

I’ll stop there, but if you want more information, or if you are looking for a Los Angeles commercial real estate BROKER, please visit me at Monocle Real Estate Services.

Westwood Retail – 2,000 SF Space available for restaurant — $2.75 / SF

Become a part of the Bruin family! This restaurant space is in the heart of Westwood, a popular shopping area, and the stomping grounds for the 45,000 UCLA students (and many Trojans who are too afraid to go shopping in their neck of the woods.) Perfect for any national chain, or a creative new flavor to inspire these college students!

For more information, please contact our Los Angeles commercial real estate division of Monocle Real Estate Services.

Beverwil Duplex - $1.7M

This duplex located between the Wilshire Corridor and Beverly Hills is a ideal investment vehicle for someone looking to move into the area. The two units share only one common wall, and have separate entrances and parking. Comparable rents in the area go for $2,500 / mo., and this makes your mortgage that much easier to afford!

For more information on this property, or any other commercial property in Los Angeles, please visit us at Monocle Real Estate Services.

Commercial Real Estate for Beginners: NNN Leases

The phrase “NNN” (or “triple-net”) leases comes up a lot in commercial real estate, so here’s a quick heads-up on what that is.

In its essence, a triple-net lease is a lease in which the tenant pays a base rent, plus NNN charges, which are meant to pay for common-area maintenance, real estate tax, and other expenses (the three N’s…duh!). In essence, this lease type allots the tenant to pay for everything, on a pro-rata share, for the building. This is a common practice mostly in retail, but is becoming more and more popular in other property types. Obviously, the appeal to a landlord is that they do not have to worry about paying anything to keep the property running, and in fact can cash the base rent like it is his NOI, because it is.

Why do tenants do it? Typically, it allows the tenant for lower rents, greater control over the property, and sometimes big concessions, such as veto power over what other tenants move in, or help paying for TI.

For more information on commercial real estate, please visit our website.

3ba/3ba Beach Bungalow in Manhattan Beach — $1.2M

This charming piece of real estate is blocks from central Manhattan Beach (and the Pacific Ocean), and has been beautifully updated. Incredibly airy and pleasant. It is the perfect choice for a family looking for a bungalow escape in the heart of the city!

For more information on this listing, or to see more real estate listings, please visit our website.

3,250 SF Industrial Space in Tustin - $1.25 / SF

A turnkey solution for a small company looking for flex / light-industrial in historic Tustin — great freeway access, recently renovated, and very beautiful — perfect if you need clients to come in! Come visit this site — you will not regret it.

For more Los Angeles commercial real estate listings, please visit our website.