Our market expertise and experience has put our company in the Top Rankings! The San Diego Daily Transcript and The San Diego Business Journal have announced Pacific Coast Commercial as the #5 Top Ranked Property Management Firm in San Diego County with over 4,612,000 square feet under management.

How Can We Help You With Your Commercial Real Estate Needs?

Property Management

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 ”The Misson of Pacific Coast Commercial is to provide Professional and Superior Commercial Real Estate Sales, Management and Leasing Services throughout the County of San Diego.”

 

HAPPY BIRTHDAY!

Todd Lytel, Diana Mares, Shirley Kanamu, Ken Robak, Kris Boehmer, Vanessa Reza

Once you have invested in a rental property, the responsibility of maintaining and running the commercial property can quickly become overwhelming. Many landlords manage properties on their own or with the help of a resident manager. Sometimes landlords need more help, and that’s when a property management company makes more sense. Property management companies can be a huge asset to your property. Carefully review the factors discussed below to determine if hiring a property management company is the right move for your property.

Why Should I Hire Pacific Coast Commercial To Handle My Property Needs?

• You don’t live near your rental property. If your rental property is located far from where you live, a property management company can deal and respond to the many issues that you will not be able to handle from afar.  Additionally you can live and travel without the requirement of always being available in the event that your tenants have a need.
• Your time is limited. Even if you enjoy hands-on management, you may not have much time to devote to your business, especially if landlording isn’t your day job. If you prefer to spend your time growing your business. Your time can be more profitably spent in areas other than servicing your properties.
• Your freedom. Avoid having to deal with middle of the night emergencies, chasing down rent, evicting people from your property, tenants who wreck your property, rental scams, lousy vendors, piles of paperwork. You have more time to spend with family or friends doing things you enjoy.
• You’re not interested in hands-on management.  You do not feel like leaving your friends and family to go show the units to prospective tenants and screening applicants.

What Will Pacific Coast Commercial Do?

• Deal directly with prospects.  Finding tenants for your vacant unit, handling every phase from showing the unit to signing the lease. Set requirements and standards for accepting or declining an applicant and ensuring you comply with fair housing rules and other local and state regulations.
• Market your rentals. Market your unit and terms using several tools (online, newspaper, “For Rent” signs). Overpriced units sit empty while other units get rented. Knowledge of rental rates is a key factor to fast rentals and quick cash flow.
• Collect rent. Establish a due date and where to pay the rent in a timely manner. Quick and consistent rent collection is absolutely critical in this real estate market where good cash flow can mean the difference between success and failure as a property owner.
• Respond to tenant complaints.   Handle maintenance concerns and resolve problems.

Pacific Coast Commercial currently provides property management services for commercial properties totaling over 4,600,000 square feet, including over 800 tenants. Our property management clients are in all parts of San Diego County, Los Angeles and Bakersfield.

These results can only be expected if a property management company is competent, trustworthy and a good fit for your property.  A poor choice of a management company can produce many headaches of its own. Pacific Coast Commercial will bring its experience and resources to your property, giving you peace of mind you deserve knowing your investment is in good hands.

If you would like to discuss if Pacific Coast Commercial can handle all your properties needs, feel free to contact Angie Nunez at (619)787-0524 or by email anunez@pcresgroup.com.

The commercial real estate industry advances many vital public interests in addition to private profit motives. Adequate supplies of decent, affordable housing fills a fundamental human need. Other societal benefits are lower crime rates, higher tax bases, and general improvement of local communities. Increased employment of commercial property management services, maintenance contractors, and commercial real estate sales professions are significant economic benefits that healthy housing markets bring to local areas.

Multiple advantages mandate major protection

Rental property owners quite obviously occupy the proverbial “cat bird’s” seat. Maintaining such lofty positioning requires consistent application of specialized skills, however. This is precisely why most prudent owners of rental realty engage the services of an expert commercial property management company.

Typical tasks performed by commercial property management company include:

- Rent collection
– Financial accounting
– Fielding and facilitating routine and emergency maintenance requests
– Handling property-related emergencies
– Marketing subject property to prospective tenants
– Facilitating the sale of subject property

Professional commercial property management companies exist as dedicated stand-alone businesses, sideline operations of full-service realty brokerages, or full-time resident employees. The most appropriate service structure varies widely and is primarily based upon property size and landlord/client needs.

How expert commercial property management companies benefit landlords

Smaller landlords with few properties are often tempted to try self-management. Cost is the most common cause of widespread hesitation to hire professional managerial assistance in such circumstances. This course can be very unwise and lead to disastrous results, however…

Pros of a paying a commercial property management company

Inherent conflicts of interest invariably arise whenever the same property serves as one man’s home and another one’s business. The same rule applies to commercial properties which house business offices or storefronts.

Having a professional commercial property management company acting as a neutral “buffer” between you and your tenants is extremely valuable.  An unbiased mediator helps nip burgeoning disagreements in the bud before they get out of hand. A seasoned commercial property management company can even avert costly litigation and needless rental revenue loss with prompt conflict resolutions.

Novice landlords and long-distance owners living far from their property derive especial benefits from engaging a competent commercial property management company. Like other business endeavors, land lording success depends largely upon adequate organizational, analytical, accounting, and social skills.

Commercial property management companies as espionage agent

A certain amount of spying ability is a required attribute of any good commercial property management company. Rental agents constantly navigate and survey the treacherous terrain of today’s fiercely competitive leasing markets to locate desirable tenants on behalf of their clients.

Vigilant surveillance is mandatory after the successful capture of conquest(s). Various conditions must be constantly monitored to identify vulnerabilities before they develop into full-blown threats to a landlord’s general welfare.

Tools and tricks of the commercial property management trade

Such hazardous environmental conditions call for possession of and ready access to the latest specialized software, extensive professional networks, and an intimate familiarity with the immediate market by any competent commercial property management company.

When an irate tenant calls at 2:00 am because their water heater just burst, one call from the commercial property management company to a commercial plumbing partner brings everything under control – within minutes. Are you a busy attorney who just bought a six-plex as a tax shelter? With a trusty commercial property management company working diligently on your behalf, those five empty units are filled in no time flat. A few calls by your commercial property management company to likely prospects in their database of anxious new arrivals to the local area who desperately seek decent housing does the trick.

Nor do you ever need to worry about spending precious $250/hour billable time compiling pertinent documents for Uncle Sam during the next tax season. A manilla envelope and comprehensive e-mail transmission containing all relevant receipts and invoices arranged in perfect order makes a timely arrival. With a single mouse click, everything is downloaded to your computer and forwarded to your accountant without a hitch.

A commercial property management company as keeper of secrets

Some landlords do not want to let the whole world in on their affairs. As the landlord’s legal agent, an ethical commercial property management company is bound to act solely in the property owner’s best interests. This incumbent fiduciary duty safeguards against compromise of the employer/landlord’s pecuniary or personal interests.

The best of all worlds

If you have been hesitating or procrastinating over the decision to hire a commercial property management company, delay no longer. Access to vast professional alliances available to exceptional commercial property management companies offers substantial savings on costs to repair, maintain, or dispose of rented premises. When time savings and emotional stress avoidance are factored into the equation, the solution becomes quite clear: High-quality commercial property management pays for itself in multiples.

Source: Property Management Direct

By: Mack Langston, Multi-Family Sales

Cybercrime is a very real danger and everyone, including the commercial real estate industry, is faced with it on a daily basis.

On Thursday, January 5^th 2012, at the 2012 Economic Trend event sponsored by the San Diego Business Journal, the representatives on the panel covered everything from health insurance to taxation. What stood out the most at this event was the topic of cybercrime which was presented to help raise awareness.

Dan Clark, VP of Marketing for ESET, stated that there were $37,000,000,000 in losses in the US in 2010 alone. That threat continues to grow today.  Mr. Clark urged everyone to invest in a good anti-spam and anti-virus program for their computers.  It is also wise to continually educate and remind company staff members of the need to be vigilant in avoiding phishing schemes. These web based schemes are getting more advanced and sophisticated in contrast to the clumsily prepared spams of the past.

In commercial real estate, we are all aware of how files and personal information can get put into the wrong hands. To avoid this threat to your company and to protect your clients, be mindful that cybercrime is a very real and growing threat, and to take all necessary steps to ensure corporate security.

REITs have taken the lead in commercial real estate transactions in 2011, according to a report from Deloitte LLP. 

As the commercial real estate market continues its recovery, Bob O’Brien, vice chairman and real estate sector leader for Deloitte, said a bright spot has been the high level of transaction activity, primarily driven by REITs and distressed deals. 

REITs “have had the opportunity to do opportunistic deals early on,” O’Brien said. “We have also seen a number of the REITs really get back in the market earlier than other investors.” 

Although there’s a difference between the amounts buyers can purchase and the seller’s pricing expectations, O’Brien said lenders and special servicers have brought distressed properties to market. As a result, investors are flush with capital to tap those opportunities. The report noted that with easier access to capital, REITs rose close to $82.1 billion in 2009-2010 to fund opportunistic acquisitions. High-quality assets, especially those in top-tier cities, made up the bulk of the transactions. 

He also noted that despite the general economic uneasiness, 2011 has been a positive year for commercial real estate thus far. He attributed the strong performance in part to the fact that commercial real estate was among the first industries to fall on tough times during the last economic crisis. As a result, the industry is further along in recovery efforts. 

“Real estate got hit very hard right at the initial downturn, and as a result, it was early to fall,” said O’Brien. 

Additionally, a lack of new building has contributed to the positive fundamentals, according to O’Brien. 

Other top issues on Deloitte’s radar include macroeconomics, increased liquidity, the impact of financial regulations and a rebound in the Asia-Pacific region, according to the report. O’Brien also showed concern about the “wall” of commercial real estate loans maturing in 2015. Ultimately, though, the most pressing issue facing the market is the timing of the broader economic recovery, according to O’Brien. 

“We are really looking at unemployment numbers going forward over the next several months,” he said. 

Source: Carisa Chappell

By: Martin F. Alfaro, Associate VP/Sales & Leasing

Many clients ask me if I think we have reached rock bottom in commercial real estate and if they should wait to purchase a property.

My initial response is that my crystal ball broke back in the early 2000’s when prices reached an all-time high, capitalization rates got as low as 4%, and properties were selling by the dozens before hitting the market. We thought we had reached the zenith in pricing by 2004 only to see prices push upward towards the stratosphere in 2005 to mid-2006. Then, we all thought this escalation would continue for many years to come only to realize all good things must come to an end. Now, fast forward to 2011/2012 and prices have declined in all sectors of commercial real estate with geography being the most notable factor in whether a property sells or not.

When I sit down with clients it is important to first discuss the exit strategy in future years so we can plan accordingly. For my owner/user clients I like to analyze their growth and direction for the upcoming years plus review the options of owning vs. leasing. For investors, we find the comfort level with price, property type (industrial, retail, office), and stability of tenants on any given project. In either scenario there is a multitude of options in today’s market with foreclosure, short, REO and/or conventional sales.

In reality, once we consider the investment options presented. Interest rates are at an all-time low, capitalization rates are pushing up towards 8% (higher on select properties), plus commercial real estate prices are reaching a more palatable arena I suggest to my clients this market lends itself to pursue those goals and ambitions of purchasing the property that suits their portfolio the best.

Recently I checked on the availability of my crystal ball but have been informed it could take years before it is restored; however, one thing is certain when buying commercial real estate…there’s no better time than the present!

You’re a commercial retail estate manager. One of your Tenants informs you that they are filing for Chapter 11 bankruptcy. What can you do?

First, don’t panic! As a commercial retail estate manager, you can help mitigate damages by becoming familiar with the process. First, start thinking about the market demand for the space; the current commercial retail estate market rent and how that compares to the lease rent; how the loss of the tenant could impact the owner’s obligations to the mortgagee; and the costs to replace the Tenant.

When a commercial retail estate tenant files for Chapter 11, you must act quickly by filing a Notice of Appearance and Demand for Notices through counsel. This allows you to receive notification of important events in the case, including the Tenant’s submission of a budget in order to secure a debtor in possession financing. You can use this information to ensure that the rent is included in the tenant’s budget, and to ascertain whether the tenant is capable of fulfilling outstanding commercial retail estate lease obligations.

The Tenant will have an opportunity to “assume,” “reject” or “assign” its leasehold interests.

A commercial retail estate Tenant who assumes a lease intends to fulfill the remaining lease obligations. Tenants who want to assume leases must:

1.      Cure any monetary defaults
2.      Compensate commercial retail estate Landlords for damages stemming from monetary defaults
3.      Furnish adequate assurances that remaining obligations will be fulfilled
4.      Satisfy all remaining obligations

Rejection releases the Tenant from rental payments as well as other continuing commercial retail estate lease obligations. Rejected leases are regarded as having been defaulted just before the bankruptcy filing. When a commercial retail estate lease is rejected, the Landlord is entitled to a rejection damage claim, typically yielding only a fraction of the face value of the claim.

Tenants may assume and then assign a lease to another entity. This typically occurs when the existing commercial retail estate lease is at a below average rent, so the Tenant can sell the lease and earn money for the bankrupt estate. Luckily, the bankruptcy code provides obligations that help protect the Landlord in such cases. Shopping centers in particular are singled out with strict obligations to protect the landlord and the viability of the center.

By understanding the provisions of the bankruptcy code, you can enhance the value of spaces leased to bankrupt Tenants, their Neighbors’ leases and your Owners’ properties. The ability to make the most out of a bad situation is a skill worth cultivating.

Source: IREM

The termination of a rental with commercial real estate Tenants can be either a very smooth affair or a disruptive, costly one. Unfortunately, when commercial real estate Tenants damage property it may occur due to retribution for being evicted or having the rental terminated. Sometimes, due to feeling slighted, commercial real estate tenants opt to cause as much damage as possible to make the Landlord’s decision as expensive as possible. Other times when commercial real estate Tenants damage property, they just happen to be messy people, causing significant cost because of a lack of cleanliness.

In either case, the standard recovery method when commercial real estatetenants damage property starts with the rental deposit taken from the tenant at the beginning of the rental, paid with the first month’s rent. A good commercial real estaterental agreement in such instances makes it clear that the deposit cash will be used to offset expenses of cleaning and repair when Tenants damage property. To bolster this term, Landlords should then review the condition of the room or unit prior to renting, have the commercial real estatetenant sign it, and keep the condition document as a review checklist when the commercial real estatetenant is moving out.

However, in some cases when commercial real estate Tenants damage property the repair cost can be far more than the rental deposit provided. To avoid this costly affair or at least reduce the loss, Landlords should make sure to inspect the rental property or unit prior to releasing the commercial real estate Tenant from the tenancy. This allows the Landlord to compare the previous condition report with the new one and make a demand for repair or recovery ahead of time.

In those instances where commercial real estate Tenants damage property and then just leave, clearly the first step involves seizure of the damage deposit. The Landlord typically has a duty to mitigate costs and not be exorbitant in expenses. Additionally, only the cost difference outstanding can still be pursued once the deposit is applied to expenses.

The Landlord has a few choices to make where further recovery is needed.

First, where commercial real estatetenants damage property and the cost difference is small, it’s probably not worth pursuing. The Landlord would be better served cleaning the unit up and trying to get a new Tenant in as quickly as possible to restore rent payment revenue. Pursuing small costs in court is meaningless because the legal representation and filing fees a Landlord will end up paying can be far more than the recovery amount. The court ultimately treats rental agreements as contracts in which punitive damages are generally not allowed in litigation.

Landlords should always remember they can’t personally go and recover when commercial real estate Tenants damage property. This is considered vigilantism and can result in personal arrest.

Second, if damage is going to be pursued legally, the process can be long and arduous. Courts don’t address where commercial real estatetenants damage property right away unless life or public safety are threatened. This is because such issues are part of rental agreements which are contracts. A Landlord recovery case in practice could easily take three or more years to wind through the civil court system. Finally, a commercial real estate Tenant could ultimately be a deadbeat or claim bankruptcy instead of paying the judgment. So the whole process may be an eventual loss.

It’s critical to be able to prove the extent of damage quickly as the court hearing doesn’t allow much time for reviewing the case. If commercial real estate Tenants damage property, the best recording can be photographs. Not only do photos provide a visual record that can be transcribed later into reports, it also shows the extent of damage very quickly to most observers.

Alternatively, when commercial real estate Tenants damage property and it is outright offensive and malicious, and/or appliances or equipment were stolen, one could pursue a criminal charge. Vandalism and theft are both violations of various criminal codes in numerous jurisdictions. As a result, a Landlord can pursue a restitution action for recovery.

A restitution action is a blend of both civil and criminal law, which is rare for Landlord-Tenant legal situations. Where commercial real estate Tenants damage property and the un-recovered cost versus the deposit exceeds $500 or so, it gets into the range of vandalism and a criminal action if intentional. Additionally, with appliances and property being removed, theft can be thrown in and if large enough in dollar-value, grand theft larceny.

If a Landlord can convince a local prosecution to pursue the criminal case after filing a police report, a judgment against a former commercial real estate Tenant can include a sentence of jail and penalties unless the former Tenant pays for the damages (the restitution). Unlike a civil judgment, if the commercial real estate Tenant doesn’t pay, incarceration is a real threat. Criminal courts don’t like it when people don’t listen to their sentences. Again, however, pursuing a criminal action in court takes time, paperwork, and sometimes money. If the recovery is minor, it may not be worth the trouble.

Source: Property Management Direct

HAPPY BIRTHDAY!

Tommas Golia