Tài liệu COMMERCIAL REAL ESTATE INVESTING pptx

209 A visionary is a person who is able to see beyond the present situation and imagine what could be in its place. The ability to envision a new shopping center where there is only a pasture at present, or new affordable homes in place of existing warehouses, is invaluable in the commercial real estate field. This ability is something that you can de- velop and fine-tune—you do not have to be born with it. CHAPTER 11 Future Vision The goals for this chapter are: To Demonstrate the Benefits of Changing the Use of a Property To Give You Insight on How to Accomplish This Goal To Provide Examples to Help You See What Is Not Already There You can learn how to do this by first understanding the benefits to you, and to the neighborhood, of being a part of such future changes. The next step will be for you to discover what is possible, which of those possibilities would fill a need for the neigh- borhood, and which of those would be financially viable. This chapter is designed to lead you down that path to accomplish the three goals stated above. Land Use Master Plan Most states have mandated that each county should have an overall master plan to enable better-planned growth and uses of land and to allow for a longer-range devel- opment outlook than previously possible. The cities within each county are then given a timetable to bring their own development plan into sync with the overall county plan. A major part of the countywide plan would be the placement of em- ployment areas; population controls by means of density caps within zones estab- COMMERCIAL REAL ESTATE INVESTING 210 Key Words and Concepts to Build Your Insider Knowledge Land Use Master Plan Current Uses Allowed Already Approved Infrastructure Changes Rezoning Possibilities Project Economics Economic Conversion lished by the county; and other elements that may include schools, parks, traffic ways, and the like. As with anything devised by man, no such plan is ever perfect, so there is an adminis- trative procedure to effect changes in these plans. Cities have some leeway to make ad- justments when development does not flow the way the plan had dictated, or when the city or county itself needs change. The overall county plans are generally designed to show what the different areas of the county should ultimately be used for, and it is then up to the cities to zone those areas according to the master plan. This procedure also has some flexibility. If the master plan shows that the northeast section of a city is to be used for commercial develop- ment, the city may have the leeway to choose what kind of commercial development it would like for that area. Accordingly, the city would assign appropriate business and commercial zoning for that area, provided those zoning uses did not violate the intent of the master plan. If you are fortunate enough to be in a county that is in the process of adjusting or read- justing its development plan to match the county master plan, you will have the oppor- tunity to participate in this process. Most such new plans give developers a chance to see how the development politics are shaping up for the area, and the very long-range outlook these plans present. If your community development plans have been in place for a long time, this does not mean the whole world knows about those plans. The majority of people who live in a community don’t know the names of the people who live three doors down from them, let alone pay attention to such mundane things as the master plan for their city. Do, however, learn everything you can about the master plan for the county and how the different cities have developed their plans to coordinate the overall development. You will find opportunities abound. Future Vision 211 Current Uses Allowed The very first question you should ask of the zoning department of the community where the property you want is located is this: Is the existing use allowed under the current zoning? Sometimes the answer is no. This might mean the zoning code has changed and the existing building or use is no longer permitted but is allowed to re- main as a nonconforming use. When this occurs, some communities will not allow that use to be transferred to another owner, while others are more flexible in that respect. Clearly, if you were buying a building because it was a pawn shop, and the zoning de- partment tells you that you will not be able to get a certificate of occupancy with that use because of the change of ownership, then that is likely to make you reconsider the purchase of that property. Most zoning codes include a specific list of businesses and uses that are permitted in that zoning. Some of these uses, however, may require separate approval as a prereq- uisite to being able to apply that use to that zoning. This prerequisite approval is called a special exception. The special exception is generally obtained through the city commission or other such authority, and will be valid for that specific use, such as a gas station, a day care center, or other specific use that is shown in the zoning book for that zoning code. The approval of a special exception will expire if not acted on or extended. Other uses which are also shown as permitted may require something additional, like a minimum size for the site, or some other criteria that may not be available in all areas where that zoning code is present. The example of the City of Tamarac, Florida, zoning ordinance for B-1 and B-2 busi- ness zoning will give you a good idea of what is included in zoning code books. COMMERCIAL REAL ESTATE INVESTING 212 Future Vision 213 DIVISION 14. B-1 NEIGHBORHOOD BUSINESS DISTRICT* Sec. 24-326. Purpose. The B-1 neighborhood business center district is intended primarily to meet the neighborhood-shopping and service needs of surrounding residential areas. (Code 1975. § 28-137) Sec. 24-327. Permitted uses. In a B-1 district, no building, structure or land and water use shall be permitted ex- cept for one (1) or more of the uses permit- ted by the master list of business uses as set forth in division 19 of this article. (Code 1975. § 28-138) Sec. 24-328. Property development regu- lations. (a) Minimum lot area and dimensions in a B-1 district shall be as follows: Area 1/2 acre Width 100 feet Depth 200 feet Frontage 100 feet (b) Minimum yard setback require- ments shall be as follows: Street 50 feet Side (interior) 25 feet Rear 25 feet (c) Maximum building height and total floor area shall be as follows: Maximum building height 35 feet Maximum gross floor 35% of the area of building total lot area Exceptions: (1) The maximum building height may be increased by ten (10) feet to accom- modate elevator towers, mechanical equipment and screening, including parapet walls, clock towers or other ornamental devices: provided, how- ever, that the top horizontal area of all height encroachments shall not ex- ceed more than fifteen (15) percent of the area of the roof. (2) The minimum interior side or rear set- back shall be fifty (50) feet when abut- ting a residentially zoned district or an S-1 zoned district, excluding golf courses, with a landscaped buffer as provided in section 24-329(5). (3) For properties less than one (1) acre, the minimum interior side setback may be reduced to zero feet on one (1) side provided that one (1) of the fol- lowing conditions exists: a. No building or structure exists on the property adjacent to the pro- posed zero-foot setback. b. The existing adjacent development would abut the proposed zero-foot setback. (4) Wherever two (2) commercial build- ings are proposed to abut each other, the side access to the rear of the buildings shall be unobstructed for a (Continued) *Cross reference—Minimum landscape re- quirements in certain districts. § 11-8. COMMERCIAL REAL ESTATE INVESTING 214 minimum of thirty-five (35) feet. The access shall be designated and posted as “fire access lane” and com- ply with section 28-16 of the American Insurance Association Fire Code. In addition, roof overhangs shall not ex- tend beyond the property line. (Code 1975. § 28-139) Sec. 24-329. Special regulations. The following are special regulations for B-1 districts: (1) Enclosed uses. All uses shall be oper- ated entirely within enclosed build- ings, except where permitted in division 19 of this article, for a limited period of time, upon application to and approval of the city manager or during specified holidays for the sale of sea- sonal potted plants. (2) Lighting. In order to minimize offen- siveness to persons on neighboring property and to eliminate distractions to and temporary blinding of drivers of vehicles passing illuminated property, all artificial parking lot lighting shall ei- ther be shaded or screened in a man- ner that will limit spillover of lighting onto adjacent property and rights-of- way. Spillover shall not exceed three (3) footcandles vertical and shall not exceed one (1) footcandle horizontal illumination on adjacent properties or structures measured at grade. An out- door lighting installation shall not be placed in permanent use until a letter of compliance signed and sealed by a registered engineer or architect is pro- vided to the city stating that the lights have been field tested and meet the standards set forth above. (3) Outdoor storage. Outdoor storage of merchandise is prohibited except where permitted in division 19 of this article, for a limited period of time, upon application to and approval of the city manager or during specified holidays for the sale of seasonal potted plants. (4) Off-street parking, loading and trash containers. No off-street parking, load- ing or outdoor storage area or vehicu- lar drive shall be located within ten (10) feet of any abutting residentially zoned or S-1 zoned district. No trash receptacle, fixed or mobile, shall be lo- cated in a required street setback area or within fifty (50) feet of any abutting residentially zoned district property. Loading zones shall be permitted only in the side or rear yard setback. (5) Fences, walls and landscaped buffers. A six-foot-high, solid masonry wall, stuccoed and painted, shall be re- quired along any line abutting a resi- dentially zoned or an S-1 zoned district excluding golf courses. A ten-foot land- scaped buffer strip on the interior side of such wall shall be planted with shade trees, eight (8) feet to ten (10) feet high at the time of planting, spaced no farther than twenty-five (25) feet apart, center to center. An optional design of such a wall may be approved by the city council. (Code 1975. § 28-140) Cross reference—Minimum landscape re- quirements in certain districts. § 11-8. Secs. 24-330–24-345. Reserved. Future Vision 215 DIVISION 15. B-2 PLANNED COMMUNITY BUSINESS DISTRICT* Sec. 24-346. Purpose. The purpose of the B-2 district is to en- courage the development of an intensive commercial facility, providing a wide range of goods and services, located adjoining at least one (1) major arterial roadway and servicing a consumer market of a substantial territory. (Code 1975. § 28-146) Sec. 24-347. Permitted uses. In a B-2, no building, structure or land and water use shall be permitted except for one (1) or more of the uses permitted by the master list of business uses as set forth in division 19 of this article. (Code 1975. § 28-147) Sec. 24-348. Property development regu- lations. (a) Minimum lot area and dimensions in B-2 districts shall be as follows: Area 1 acre Width 200 feet Depth 200 feet Frontage 100 feet (b) Minimum yard setback require- ments shall be as follows: Street 50 feet Side (interior) 25 feet Side (corner) 35 feet Rear 50 feet (c) Maximum building and total floor area shall be as follows: Maximum building height 40 feet Maximum total floor area 30% of (not including exterior the total mall space) lot area Exceptions: (1) The minimum interior side or rear yard setback shall be fifty (50) feet when abutting property is either a residential or an S-1 zoned district with a land- scaped buffer as provided in section 24-349(5). (2) The maximum building height may be increased by ten (10) feet to accom- modate elevator towers, mechanical equipment and screening, including parapet walls, clock towers or other ornamental devices: provided, how- ever, that the top horizontal area of all height encroachments shall not ex- ceed more than fifteen (15) percent of the area of the roof. (3) For existing properties less than one (1) acre, the minimum interior side set- back may be reduced to zero feet on one (1) side provided that one (1) of the following conditions exists: a. No building or structure exists on the property adjacent to the pro- posed zero-foot setback. b. The existing adjacent development would abut the proposed zero-foot setback. (4) Wherever two (2) commercial build- ings are proposed to abut each other, the side access to the rear of the (Continued) *Cross reference—Minimum landscape re- quirements in certain districts. § 11-8. COMMERCIAL REAL ESTATE INVESTING 216 buildings shall be unobstructed for a minimum of thirty-five (35) feet. The access shall be designated and posted as “fire access lane” and com- ply with section 28-16 of the American Insurance Association Fire Code. In addition, roof overhangs shall not ex- tend beyond the property line. (Code 1975. § 28-148) Sec. 24-349. Special regulations. The following are special regulations for B-2 districts: (1) Enclosed uses. All uses shall be oper- ated entirely within enclosed buildings unless otherwise approved on a site development plan. Any exposed activ- ities such as garden supplies or auto- motive installations shall be fully screened from horizontal view from any point off the site. (2) Lighting. In order to minimize offen- siveness to persons on neighboring property and to eliminate distractions to and temporary blinding of drivers of vehicles passing illuminated property, all artificial parking lot lighting shall ei- ther be shaded or screened in a man- ner that will limit spillover of lighting onto adjacent property and rights-of- way. Spillover shall not exceed three (3) footcandles vertical and shall not exceed one (1) footcandle horizontal illumination on adjacent properties or structures measured at grade. An out- door lighting installation shall not be placed in permanent use until a letter of compliance signed and sealed by a registered engineer or architect is pro- vided to the city stating that the lights have been field tested and meet the standards set forth above. (3) Outdoor storage. Outdoor storage of merchandise shall be permitted only when incidental to the commercial use located on the same premises: pro- vided that: a. The storage area shall not be lo- cated in any of the required set- backs. b. The stored merchandise shall not protrude above the height of the enclosing walls or buildings. (4) Off-street parking and loading. No off- street parking shall be located within ten (10) feet of any abutting residential or S-1 zoned district property. No load- ing shall be located within thirty (30) feet of any abutting residentially zoned district property. No trash receptacle, fixed or mobile, shall be located in a required street setback area or within fifty (50) feet of any abutting residen- tially zoned district property. (5) Fences, walls and landscaped buffers. A six-foot-high solid masonry wall, stuccoed and painted, shall be re- quired along any line abutting a resi- dentially zoned or an S-1 zoned district, excluding golf courses. A ten- foot landscaped buffer strip on the in- terior side of such wall shall be planted with shade trees, eight (8) feet to ten (10) feet high at the time of planting, spaced no farther than twenty-five (25) feet apart, center to center. An optional design of such a wall may be approved by city council. (Code 1975. § 28-149) Secs. 24-350–24-385. Reserved. Future Vision 217 City of Tamarac, Florida A community located west of Fort Lauderdale A partial list of uses for B-1 and B-2 Zoning Categories Note: Items shown as x* require a special exception approval from the City Commission B-1 Neighborhood B-2 BUSINESS USE Center Community Abstract company x x Accounting office x x Advertising company x x Air-conditioning equipment, retail only x Air-conditioning equipment, retail repairs x Air-conditioning equipment, wholesale Alcoholic beverages (accessory use), special exception* x* x* Ambulance service, special exception* x* x* Amusement centers, indoors, special exception* x* x* Amusement center, exterior, special exception* x* Animal clinics (no boarding kennels for animals and no x* exterior runs or pens) Animal clinics, pet hospitals Antique shops x x Archery range, indoors, special exception* Armored car service offices x Art galleries x x Art schools, special exception* x* x Art supplies x x Artists’ studio x x Associations (civic, etc.) x x Athletic clubs, indoors, special exception* x* x* Auctioneers, enclosed, special exception* x* Auditorium x Auto parts, equipment—Accessories, new, retail— x x Also new, wholesale* Auto repair: (1) All major repair shall be done within an enclosed building. (2) Outside storage or display of parts is prohibited. Outside merchandise display (Continued) COMMERCIAL REAL ESTATE INVESTING 218 B-1 Neighborhood B-2 BUSINESS USE Center Community is limited to petroleum products and tires only, and these products shall not be displayed beyond the pump island areas. (3) Outside storage of vehicles shall be restricted to vehicles with valid license plates and valid inspection stickers. All vehicles stored outside after business hours shall be parked in an orderly manner and only in approved parking spaces and shall not be visibly dismantled and shall not appear to be junked or abandoned. (4) Paint and body shops and paint and body work are prohibited. Special exception.* x* Auto tag agency and license bureau x x Auto tires, new retail and installation x Auto tires, wholesale Auto wash racks, as accessory use* x* Awning stores, sales only* x* x* Bait fish (other than artificial) Bakeshops, retail, limited preparation x* x* Banks, commercial: If any bank, whether freestanding or not, is x x to have drive-in facilities, this use is allowed only if a traffic circulation plan is submitted which will be sufficient to satisfy the maximum projected usage of the drive-in facility on the site with no disruption of traffic off the premises or disruption of customers seeking to park their vehicles and to physically enter the bank. Each drive-up lane must have stacking capability of one hundred (100) feet minimum. Banks, commercial, not in freestanding buildings, x x with no drive-in facilities Barbershops x x Bars, not in restaurants, special exception* x* [...]... adjustments that are generally a part of every commercial lease They are real estate tax adjustments, cost of living adjustments, common area maintenance, and percent of gross sales adjustments In general these charges can be negotiated separately by the tenants Real Estate Tax Adjustments Some leases may allow the lessor to collect increases in the real estate tax over the amount assessed the year the... king,” and so on If more salespeople and their brokers were really at the top of their game, they would know what is going on in the community and what other uses the property could best be converted to Nonetheless, from your perspective, the fact that only a few professional real estate salespeople and their brokers deal with commercial real estate anyway, and that only a few of those professionals... changes and development are easier to plan for and to finance The kinds of infrastructure changes most important to a commercial real estate investor will be anything that will have a long-range benefit to a neighborhood, to the businesses of that neighborhood, and to the values of the real estate in the affected neighborhood There are several interesting and not so apparent factors that occur when future... have been an active realtor for over 35 years, and take my word, most real estate salespeople and brokers are not visionaries First of all, the majority of them are residential salespeople, and they tend to follow the owner’s vision When a seller is motivated to sell, the salesperson who can help that seller attain that goal can be a very good person to know to help achieve that goal Commercial brokers... income-producing property should also be designed to get the most out of the real estate This would suggest that the expected life of the buildings should not be prolonged past an economic effectiveness When the value of the underlying land can support a greater use of the property, then buildings go and a new project replaces them Every real estate project and income-producing investment has a point where the... R E A L E S TAT E I N V E S T I N G 4 Small steps yield big results 5 Pitfalls to watch out for in economic conversions Most Owners Lack Vision There are many different kinds of commercial investors Most buy commercial real estate because there are usually multiple tenants involved, and that spreads the risk of high vacancy over a wider base than when dealing with single family rentals There are investors... 50,000-square-foot office building to be built This kind of local knowledge is learned by osmosis It just suddenly occurs to you how stupid you have been not to realize what’s there But if you think that is stupid, what about the owner or the real estate firm that has the “For Sale” sign in the yard and never thought to present the building to apartment developers in the community? In general, economic... already given you the keys to mastering the technique of becoming knowledgeable of the zoning and building codes You’ve learned that as you develop the habit of inspecting more and more real estate, there will be a day when you realize that the run-down duplex you have driven by for the past six years is sitting on a parcel of land that will allow 25 apartment units to be built, or the 50-year-old frame house... is the minimum operating expense This is the 225 C O M M E R C I A L R E A L E S TAT E I N V E S T I N G no-frills operation that meets the needs of the property and would include all debt service, real estate taxes, insurance, utilities, a reserve for repairs and replacements, and management cost It should allow for maintenance of the status quo, but would not allow for continual upgrades of the property... having problems meeting other obligations as well Find out as best you can what is causing this problem It could be something other than the client base Nonetheless, demographics are a tool that all real estate investors can and should learn to use The companies that compile the data can help you learn how to use that information Ask for explanations to the terms they use and what the data indicates . secondhand x x (Continued) COMMERCIAL REAL ESTATE INVESTING 220 B-1 Neighborhood B-2 BUSINESS USE Center Community Clubs, lodges, civic, noncommercial x x Cocktail. will give you a good idea of what is included in zoning code books. COMMERCIAL REAL ESTATE INVESTING 212 Future Vision 213 DIVISION 14. B-1 NEIGHBORHOOD BUSINESS