For the past 30 years, I (Mark Nelson) have worked in the appraisal field with Roy R. Fisher, a company that was founded in 1929. That’s a lot of appraisals and a lot of business partnerships. Memory is a funny thing; in many ways, it seems like I just got started yesterday. But of course, whenever I begin work with a new client, all of those years in the field come into play. They have given me the knowledge and experience we use to help our clients. It’s been a wonderful 30 years, and I’m still going strong.

It’s been fascinating watching the changing real estate landscape. For instance, office supply stores have become Salvation Army warehouses and donation centers. Former businesses like K-Mart have become U-Haul Rental businesses. Old multi-story warehouses have become loft apartments. So many businesses have moved or changed ownership.

Survival is certainly no guarantee in any industry, and there have been tough times in the commercial real estate appraisal business as well. The COVID-19 pandemic was a challenging time, but the economic downturn of 2008 also hit the real estate market particularly hard, and many businesses didn’t survive.

Thankfully, I’ve seen quite a bit of success in my 30 years. I have testified in several tax appeals, helping clients achieve fair and equitable assessments. My eminent domain appraisals have helped property owners and cities successfully reach agreements on acquisitions for needed right-of-way improvements. And achieving the MAI Designation was a rewarding experience for me. It means a lot that the Appraisal Institute recognized the quality of my work. In order to achieve MAI designation, I had to:

• Have good moral character;
• Be a Certified General Real Property Appraiser (or meet equivalency)
• Hold bachelor’s degree or higher (or be a Certified General Real Property Appraiser)
• Meet standards and ethics requirements;
• Pass rigorous education requirements;
• Pass a final comprehensive examination;
• Receive credit for specialized experience that meets strict criteria; and
• Receive credit for the demonstration of knowledge requirement.

One of the things that keeps Roy R. Fisher going is that we know we provide a valuable service. We serve Fortune 500 companies as well as small local businesses. Our expert appraisals help clients reduce tax burdens, provide litigation support, and avoid costly investment mistakes.

On a personal note, it’s been rewarding getting to know so many wonderful clients, forging friendships and working relationships that make us feel good about the work we do. I’ve seen businesses grow from small “Mom & Pop” shops into large enterprises. I’ve seen young clients become parents and grandparents and young entrepreneurs grow into pillars of the community. I’ve seen historic properties saved and restored, and I hope to see a lot more of that over the decades to come.

It’s been a wonderful 30 years, and I look forward to 30 more years.

If you are thinking about buying commercial property for the first time, the landscape can be daunting. Even if you already own several commercial properties, you may encounter new challenges. So then, what should you consider before making your next commercial property investment?

Investopedia defines commercial real estate (CRE) as “property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space.” The main categories of commercial properties are office, industrial, multi-family, and retail. Because commercial real estate typically requires more capital than residential real estate, investing in it can be more difficult for individuals.

We have all heard the cliché, “Location! Location! Location!” applied to home buying, and the same is true of commercial real estate. In fact, it is the very first point the U.S. Chamber of Commerce recommends investors consider when looking to make a real estate purchase. However, location can be a bit more complicated for an investment property. The infrastructure surrounding your location can make a significant impact on your investment, too. If you buy a warehouse with the intent to lease it to an industrial tenant, you need to make sure the infrastructure is there for this type of user. For example, proximity to interstates or highways can be beneficial.

After you have determined the classification of a property, it is important to really get to know the building. As the U.S. Chamber of Commerce points out, you want to know what the building was previously, how much wear and tear has been done to the property, and what potential repairs are going to be necessary now and in the future. Major expenses often include repairing or replacing items like the roof, the parking lot, or the HVAC system. Our commercial appraisals can help with this kind of insight, but you should do your own research as well.

Once you have gotten to know the property, there are four types of commercial leases you as the owner can offer for investment purposes, according to MasterClass. We would also add a fifth type of commercial lease to their list.

• Single-net lease: Single-net leases make the tenant responsible for paying all property taxes for the duration of their lease.
• Double-net lease: Double-net leases make the tenant responsible for paying insurance and property taxes for the duration of their lease.
• Triple-net lease: Triple-net leases make the tenant responsible for paying insurance, maintenance, and property taxes for the duration of their lease.
• Gross lease: In a gross lease, the tenant only pays the rent, and the property owner pays all other related fees for the property.
• Full-service lease: An all-inclusive lease where the owner pays for in unit services (cleaning). These are often government leases.

If you have any questions about our commercial services, please contact us.