Family enjoying outdoor meal at home in Vienna, WV

Houses for sale in Vienna, WV

Houses for Sale in Vienna, WV

The PM Company is a trusted real estate broker in West Virginia. We’re a local, family-owned business. We’ve been working in the area for generations and are proud of our commitment to customer service.

 

We know buying a home can be a stressful process. But it doesn’t have to be when you work with The PM Company. 

 

Today, we’re going to give you a rundown of houses for sale in Vienna, WV. We’re going to share a few details about the local housing market along with some popular areas. Whether you’re moving to Vienna from out of town or you’ve lived here your entire life, here’s what you need to know about houses for sale in Vienna, WV.

 

Where is Vienna, WV?

Vienna is a small town of about 10,000 people nestled right along the east bank of the Ohio River. It sits on the northwest edge of West Virginia in Wood County (also a quick drive from Ohio). Many people consider Vienna a northern suburb of Parkersburg, WV.

 

What is the Cost to Buy a House for Sale in Vienna, WV?

Housing in Vienna is well below the national average. The median home price in the USA is $428,000 with West Virginia showing a median home price of $137,000. 

 

Statistics show that Vienna, specifically, has homes for sale at around $143,000 or $100 a square foot. The low cost of an average home makes Vienna an attractive place to live. Moreover, the cost of living is 21% lower than other American cities. Therefore, you may be able to get by with less or save more for retirement or a later home upgrade. 

 

What is it Like to Live in Vienna, WV?

Vienna, WV, is a small, family-friendly town. If you want the hustle and bustle of a big city like New York or Chicago, this is not the place for you. But if you want a quiet place to live near the river and woods with a quaint, local feel, then Vienna might be your ideal location. 

 

Most residents report that the schools are decent and the small-town feel is great for raising children. The pace of life in this city is an ideal balance between big city and rural countryside. 

 

What are a Few Landmarks in Vienna, WV?

When looking at houses for sale in Vienna, WV, you’ll want to pay attention to nearby landmarks and attractions. Are you more of a shopper who frequently picks up groceries for your family or do you prefer being close to nature? Take a glance at this list of local attractions when choosing a house for sale in Vienna.

 

The Ohio River

The entire town of Vienna runs north-south along the Ohio River. As long as you’re on the west side, you’ll almost always be a few minutes from river access. If you own a boat, you can also use one of the public boat launch points nearby.

 

Neal Island

Neal Island is an interesting bar island right off the Vienna shoreline. It’s a piece of interesting history, having been home to early settlers, commodity speculators, and a small community. Now, the island is managed by the US Fish and Wildlife Service. Learn more about Neal Island here.

 

Parkersburg Country Club

If golf is your game, you may want to become a member at the Parkersburg Country Club, located in north Vienna. It was the first country club to be incorporated in West Virginia and currently offers tennis, swimming, and golf among other activities.

 

McDonough Wildlife Refuge

The McDonough Wildlife Refuge lies to the east of Vienna and is a beautiful place for the family to get outdoors and learn about nature. The refuge features hiking, duck marshes, and educational materials to expand the mind. 

 

Grand Central Mall

South Vienna is where you’ll find most of the town’s shopping opportunities. While malls may not be as popular as they once were, Grand Central Mall is still a lovely place to spend an afternoon and pick up some much-needed items. Vienna is opening up new stores each and every year, so check in to see what’s new!

 

Browse Houses for Sale in Vienna, WV

Now that you have a brief overview of life in Vienna, it’s time to browse Vienna houses for sale. We don’t limit our services to just residential buyers either. We can help businesses and landlords find incredible real estate deals across the Mid-Ohio Valley as well. To browse our current selection of properties, click here.

 

The PM Company is constantly updating our real estate inventory. And in this market, homes can go quickly! Please reach out today with your ideal home vision so that we can put you on our calling list. Be the first to know about new houses for sale in Vienna and the greater Parkersburg area.

Best Commercial Realty Services in Parkersburg, WV

Finding The Best Realty Services In Parkersburg, WV

 

The world of commercial real estate is exciting: whether you’re ready to develop a commercial locale, sell a property, or lease and occupy as a business owner, locating the right building is crucial. Just as important as your location is the team of people who guide you through the realty process.

 

When searching for commercial real estate services in the Parkersburg, WV area, you’ll find plenty of choices. However, not all realty services in Parkersburg are created equal, and finding a company that shares your values and understands how important your goals are is imperative to achieving a successful real estate acquisition.

 

We’ve heard from our clients repeatedly that a real estate company’s level of involvement in the community is a consistent predictor of a top-notch commercial property experience. At the PM Company, we couldn’t agree more. We believe that real estate is more than a pile of bricks; it’s the building block of how we live.

 

That’s why at the center of our realty services in Parkersburg, WV there’s always a focus on how we can elevate the surrounding areas of our commercial properties.

 

Why Is It Important To Work With A Community-Focused Real Estate Business?

Playing the real estate game can be stressful no matter where you are in the commercial real estate field. Not only do you have your vested interest in the property; city regulations, permits, and other considerations cause complications and stress. 

 

Selecting a knowledgeable realty services team is crucial, but finding one who cares about your project and vision as much as you do can transform an otherwise overwhelming experience into something fun and supportive. Community-focused realty services are especially adept at that extra support for several reasons:

 

1. It’s About More Than Numbers And Money

Sure, numbers are important, especially in real estate. But if you’re focused on community, you see how real estate shifts the lives and well-being of a neighborhood’s citizens. A sidewalk cafe offers a space to gather and meet. A run-down building becomes a local car shop with a personal touch. A shopping center provides a one-stop destination for busy parents on the go. With this in mind, a community-focused realty service group is motivated to advocate for the best buyers, sellers, and tenants. That’s why you should be on the lookout for the best realty services in Parkersburg. 

 

2. A More Personalized Realty Service

A real estate firm that cares deeply about the community won’t push for a deal to get done for the sake of it. While understanding the importance of closing on a property, they’ll work with you to achieve your goals and meet your interests. In the process, you might meet community members and build relationships for future collaborations. Additionally, by knowing your short- and long-term goals, the best realty service provider in Parkersburg can present appropriate future opportunities should they arise.

 

3. Relationships That Open Doors

Community-focused real estate companies that stand by their values have formed relationships in the areas where they do business. Any good real estate agent will use those relationships to connect clients with opportunities, creating a win-win-win situation between all three parties. By giving back, raising their families in the community, and participating in local businesses and churches, they’re inevitably woven into the very fabric of society where they do real estate. 

 

4. Shedding Light On Local Rules & Regulations

As exciting as it is, commercial real estate comes with its own set of challenges that vary from county to county and sometimes from city to city. A business owner or developer can run a feasibility or market viability analysis and confirm the numbers check out but still be met with unexpected fees or permits when they file for the appropriate licenses or permits. The best realty service providers in Parkersburg are embedded in their communities and can shed light on the local rules and regulations—so you can start conducting business with ease as quickly as possible. 

 

5. Work With A Values-Led Organization

It’s important to make money in real estate, and a good agent and brokerage know how to put deals together that put all parties ahead in one way or another. However, with all the complexities of commercial real estate, you want to work with people you can trust to guide you through the process with integrity. A community-focused real estate company increases the likelihood of working with a team or individual that sees beyond the numbers into the bigger picture: wins for buyers, sellers, lessees, and the community at large.

 

The Best Realty Services In Parkersburg, WV

If you’re looking for the best realty services in Parkersburg, WV, we invite you to connect with the PM Company. We offer full-scale commercial realty services in Parkersburg, WV—so you can buy, sell, or lease your commercial property with a company that knows the ins and outs of the local community. Our family-owned, family-operated business was established in 1980, and we understand how local support can elevate a community at the collective level. 

 

We love commercial real estate and have leveraged our success in this industry to give back to the community through our greatest achievement, the Spirit Of Giving Foundation. We’re always excited to partner with new clients—whether they’re buying, selling, or leasing commercial real estate. Every deal done right is for the benefit of the community. 

 

Please contact us today to get started with the best realty services in Parkersburg!

property development as five white houses made of paper

What is Property Development?

What is Property Development?

Fundamentally, property development is about adding value to land by renovating and reimagining its uses. As our cities and communities expand, property development is a necessary process. New grocery stores need to be built. Light residential areas make way for apartment buildings. A startup renovates an old warehouse into an office.

 

The most successful property developers recognize trends before they happen. They notice how the city is growing and how demographics will shift. For example, a property developer in the 1940s might have made good money setting up a bowling alley before the sport reached its peak popularity.

 

In this article, we answer, “What is property development?” The team at the PM Company hopes this information helps you begin the journey of investing in and improving upon your property.

 

Why Develop Property?

There are many benefits to property development. Speak to a representative at the PM company to see if property development is right for you.

 

1. Financial Reward

Real estate is a lucrative investment opportunity. Because the population is always growing, people will need spaces to live and work in. Moreover, cities are becoming more and more crowded, meaning wealthy individuals will pay higher prices to live in desirable areas. Many people develop property in order to make money.

2. Business Needs

Each business has its own unique building requirements. A retail store might find an attractively-priced space that needs walls removed and storage installed. A business that has grown rapidly over the past year might need a larger space – they might even build a brand new headquarters. A well-considered property can be a great boom to a business.

3. Community Development

Finally, some companies will develop properties in order to benefit the local community. Someone might demolish a condemned house and make way for a community garden. Others will renovate commercial properties in order to spur business growth. For years, the PM Company has been active in supporting our local communities.

What Does the Property Development Process Look Like?

Property development is not an easy task. It requires deep planning and execution. Before deciding whether to start developing a property, consider the following steps. 

 

1. Understand Your Goal

Will you be building a brand new structure or will you renovate an existing structure? What are your needs? For example, a company looking to build a new apartment will need to calculate the number of units times the expected rent to be charged to see if it’s a financially feasible project. Get clear on your goal for property development. 

2. Find Funding

If you’re considering developing a piece of property, plan out your capital needs. Find investors and see if there are any government grants that can help with the development process. Speak with a lawyer about setting up an LLC or another corporate entity so that you minimize personal liability. Too many development projects fail because the leaders failed to adequately plan for financial setbacks.

3. Get the Proper City Documents

Zoning is a complex reality of property development. Not only do you have residential, commercial, and industrial zones, but there are different regulations depending on where in the county you build or what kind of structure you’re building. You’ll need to check usage allowances, building height requirements, noise considerations, and more.

You may also want to discuss your plans with the local community. Not every resident will be excited about your new project, and local resistance can cause headaches and delays. 

4. Find a Trusted Contractor or Construction Company

Who is going to complete the physical development work? Make sure you find a construction company that can complete the project on time and under budget. Do you have specific needs for your property, like workshop equipment or electrical setups? Discuss these needs with your contractor before the project begins.

5. Get Started Developing Your Property

Property development is rarely a smooth process. Once you start, many things can go wrong. But for those who persevere, there are many rewards. Remember your original goal and keep pressing on. Don’t let minor setbacks discourage you. 

 

What is the Average Cost to Develop a Commercial Building?

This is a difficult question to answer for many reasons. Are we talking about a new build or a renovation? Is this building located downtown or in a rural community? Costs vary state by state.

 

That said, you can expect to pay $20 to $50 per square foot to purchase an existing commercial building. The $50 per square foot figure factors in renovation fees and custom work. The price will vary based on the type of building. A stud-frame location will cost less than a steel-frame warehouse. 

 

The PM Company is Here to Help You With Your Property Development Needs

The PM Company is your go-to resource for property development in the Mid-Ohio Valley. Our company has been family-owned for generations, which means we understand the area and the local businesses.

 

We have multiple properties available for development and leasing. Our clients are always provided the best advice and guidance as they choose the location that’s best for them. From medical centers to commercial plazas, we offer a wide range of quality properties. 

 

Questions? Please ask! Our team is known for our friendly and professional service. We’re happy to come alongside new and veteran property developers as they seek to obtain a new or upgraded location.

Office cleaning staff.

5 Reasons You Need an Office Space Management Team

5 reasons you need an office space management team

Many property owners have found that the costs of managing properties can quickly become an expensive hassle. 

 

What once was an income generating asset has now become a burdensome headache. Maybe your property has turned into a backlog of repairs, custodial maintenance, and delinquent rent checks that haven’t been mailed on time. 

 

Property owners may find themselves dealing with spaces that sit vacant for significant periods of time. Without proper maintenance, these properties quickly become victims of weathering, age, and weeds. But it’s expensive and time consuming to manage upkeep. Many property owners may find themselves in over their heads and wondering how to get back on top of the endless to do list that comes with property management. 

 

The good news is, there’s a way to manage these mundane tasks and keep your property management business from fizzling out. An office space management team performs the tasks you’re unable to do yourself: cleaning, repair work, and property upkeep. 

 

If you’re wondering whether it’s time to hire a professional management firm and are weighing the pros and cons, here are five ways to know it’s time to find a trusted office space management team. 

 

1. You are sick of having to chase down rent.

No one loves having to be the overbearing landlord, but you also need money from your tenants to keep your business running smoothly. At a time when everyone is feeling some sort of financial squeeze, the pain of continually requesting rent from lessors can be taxing. Why not shift that burden to your office space management team? 

 

In most cases, hiring an office space management team allows you to take advantage of electronic billing systems. This allows tenants to pay in a billing portal, combining all rent, CAM fees, and other items into a singular payment handled by an arbitrary body. Allowing users to take advantage of electronic billing via a property management firm will free you from having to collect and deposit checks. Not to mention it saves paper and makes your business more eco-friendly! 

 

2. You have some vacancies and need help filling them.

It’s hard enough trying to keep your tenants happy. A huge list of responsibilities comes with occupied properties, from managing custodial maintenance to setting a long term improvements schedule—and tackling all the other tasks you have to do between multiple properties. 

 

But what about your vacant spaces? Those properties need just as much attention but come with an added task: looking for new renters. There simply aren’t enough hours in the day to get everything done!

 

Leaning on your office space management team not only frees you from the maintenance work, but their relationships with other vendors and multiple clients will open the door for new tenants to find your office space. 

 

3. You are struggling to keep up with rental operations.

The requirements for keeping up an office space can be daunting for a small team. The maintenance scheduling, tenant management, and general upkeep are enough to occupy all of your time. That’s assuming you only have one space to maintain. 

 

Engaging an office space management team will help you better understand the total upkeep requirements that come with juggling multiple rentals. Your team can also create maintenance schedules for you to oversee or manage that for you. 

 

By engaging professionals with years of experience in office management, you can be assured that vendor contracts, maintenance scheduling and management, tenant management, and basic services between rentals are coordinated and completed. 

 

No more guesswork of what needs to be done, what should be done, and when it’s going to get done with a professional office space management team.  

 

4. You are tired of wrangling contractors for maintenance and cleaning.

With supply chain and labor shortages intensifying, continuing your existing relationships with vendors gets tougher and tougher. Having to juggle the schedules of multiple firms, dealing with vendors failing to provide the services you expect, and figuring out what still needs completed each day can make facility ownership feel less like a profit generator and more like a hassle.

Engaging an office space management team to manage operations and perform cleaning and maintenance will ensure the tasks get done and you won’t have to exhaust yourself with vendor tracking and follow up. 

 

5. Your personal upkeep fees are eating up your profits.

You may be skeptical about hiring an office space management team. Will they really be able to save you money, or are you adding yet another business cost? 

 

Chances are, you’re going to save a lot more than you think. An office space management team leverages its numerous vendor list and own employees to provide the best services at the lowest prices. By engaging vendors and building multiple contracts, you can capitalize on the savings when projects are ordered in bulk. 

 

When you factor in the cost of engaging an office manager and the potential cost savings versus individual management and the hassle of juggling multiple vendors, the decision becomes clear. 

 

Ready for your office space management team?

If it’s the right time to hire a professional office management team, give the team at PM Company a call. Their dedicated staff will walk you through the process and free you up from the burden of continued management of your office space. Call 1-304-485-8000 today to speak to one of their qualified agents. 

 

lease paper work

What does FSG mean?

What does FSG mean when it comes to real estate leases? 

If you have been considering a commercial lease, you have likely run into a number of terms that you haven’t seen before. You might even struggle to make sense of all the jargon: Triple Net, CAM Cap, Cap Rate, etc.

 

The same too can be said for FSG or full service gross lease. 

 

A full service gross lease or FSG is a lease where the landowner or building owner pays all costs associated with maintenance and upkeep and the tenant pays only for rent and utility costs. In this lease, there is a single amount paid by the tenant, this typically includes your base rent and includes the cost of your utilities like water, sewer, electricity, and or gas, property insurance, and any common area maintenance fees. 

 

Costs associated with the facility’s operation could also be included in the FSG, things like trash removal, internet and phone service, security, etc. Some of these may be in the CAM fees portion of the lease, so do check the fine print. The bottom line is that on an FSG lease, the lessee and the lessor have an agreed-upon, simplified fee structure that gives both parties comfort in knowing that the monthly payment will cover both parties’ expenses. 

 

Where do you see FSG leases used?

Most FSG leases are written up for office buildings or older retail or industrial spaces. These leases are common because the landowner recognizes that the costs to operate and maintain the facility can vary greatly by the type of business seeking to inhabit the space, and as a result, it would be easier to structure a lease that gives the lessor full control in the cost structure since they know what fees are truly associated with inhabiting the space. 

 

Tenants may be unaware of the cost of building insurance, common area maintenance, and property taxes, so an FSG lease will factor these costs into a single payment, ensuring that the lessor isn’t responsible for determining all the ancillary costs of operation. This makes it easier for the landowner to lease their space, given they are using a flat fee structure, and for the leasee since they are given a singular cost to compute. 

 

This can be a benefit to those businesses who are unsure of their total operational costs and want peace of mind in knowing that their landlord will cover all ancillary costs via the simple rent payment. For those businesses who have a firm idea of their operational costs, want more discretion in lease structure, or recognize they have unique needs that may not require the services woven into a singular payment, a full-service gross lease may not be their best bet and some negotiation may be in order.  

 

Why are FSG leases used?

Full service gross leases are commonly used where there is a consistent demand for routine maintenance, high-level upkeep, and high amenity usage. In this lease structure, there are operational costs that each of the tenants are taking advantage of on a regular basis, and haranguing the tenants with countless individual invoices is avoided for the sake of a singular payment structure. 

 

Additionally, landlords may recognize that if they are maintaining multiple structures and outsourcing the work to a custodial firm, spreading their costs among all of the tenants for all of the services provided can lower total upkeep costs, giving tenants high-quality service at a fraction of the unit cost.

 

FSG leases are also common because of their flexible nature. If a landlord maintains a space where a number of the businesses share the same sector, taxes, and utilities, then overall costs can be estimated with a high degree of certainty, and the single payment structure can be projected at the onset, allowing tenants a turnkey solution. 

 

Why you should know the difference between Triple Net and FSG leases

Triple Net leases are the most common kind of commercial lease and pass most building expenses on to the lessee in addition to their base rent in the form of multiple invoices. Full service leases are leases that are single payment in structure and wrap up all costs into one payment, allowing the tenant to pay once and have their building insurance, maintenance fees, and taxes covered in the singular payment. 

 

For your business, you need to determine what lease structure is in your best interest. If the idea of a singular, FSG payment, with all costs included in the fee, appeals to you, finding an office building with a full service lease structure is advised. 

 

Yes, the rental rate for these structures is often higher than other properties on the market, but that is because it is full service. Understanding the fee structures and what is included is critical in determining where your business can thrive. If you’re unaware of fees in a triple net lease structure, you may think you’re getting a good deal only to find out that secondary building fees are much higher than originally expected. 

 

So which lease is right for you? Talk to your trusted leasing professional, discuss the lease specifications you might need, and factor in the costs associated with these prospects. Whether the lease FSG, Triple Net, or some sort of hybrid, the leasing professionals at PMC will help you find the location you need. 

Buying vs. Leasing Commercial Real Estate: The Pros and Cons

Buying vs. Leasing Commercial Real Estate: The Pros and Cons

Buying vs. Leasing Commercial Real Estate: The Pros and Cons

Which is better, buying or leasing? As a business owner, you need to consider various factors before deciding which approach will work for you. Generally, your decision comes down to the amount of money you will be spending or saving. But figuring out where those savings come from is the tricky part. You must consider many things, including the stage of your business, monthly payments, financing options, and cash flow. This article will discuss the factors you need to consider before leasing or buying a building.

 

Monthly payments vs. cashflow

Before you decide to lease or buy a building for a business, consider how much money the business brings in compared to your projected monthly payments. You’ll want to avoid overstretching your budget or else you’ll risk facing negative consequences due to default payments. You need to follow through with your monthly payments without crippling your business operations, so the option you go for should reflect the status of your finances. Leasing can sometimes be cheaper than ownership, so although you’re not building equity with a lease, you’re keeping costs as low as possible.

 

Building maintenance

Landlords and property managers will have specific terms for their leasing and buying clients regarding maintenance. The monthly payment for maintenance depends on the lease agreement you sign before moving in. Since a buyer is a building owner, buying clients have no option but to pay for regular maintenance costs out of pocket. Before you buy a building, consider whether you can pay the monthly bank payment plus maintenance fees. Otherwise, consider a lease.

 

Equipment usage

A tenant can often use fixtures and appliances in a commercial building but can’t take the equipment with them when they finish the term of the lease. Even when a landlord installs equipment to enable the client to do business smoothly, the equipment remains the property of the building owners. If you foresee your business moving in the short term, consider buying necessary equipment or purchasing the building outright.

 

Mobility

Whether your business grows or shrinks, it is important to ensure that the agreement you have meets the future needs of your business. Does your current space allow your business to expand and grow in the future? And in case all does not go well, are you at liberty to degrade without facing penalties? A lease will give you more flexibility if your business is in a period of rapid growth.

 

Long-term savings

Compare the savings you are going to make leasing versus buying. Ask your commercial real estate agent to show you multiple properties for sale or lease. Try to figure out the average price for both options and use that information to make an informed decision. Depending on the option you go for, you could save on the initial down payment, recurrent monthly rent payments, lease payments, tax deductions, and liability insurance.

 

The pros and cons of buying commercial property

Check out the advantages and disadvantages of buying a building:

 

It is an extra source of income

You can start earning rental income immediately when you become a commercial building owner. If you are not using all the space available, you can rent it out to other business owners and make extra income from the monthly rent payments.

 

You have more control of the building

As a commercial building owner, you have more control over what happens inside. You set the rules and can make key decisions about how you use the space. A landlord can’t restrict you from running your business how you want because you have the final say, as long as it is compliant with the state laws.

 

The premise’s value keeps going up

The good news is that, for the most part, property values appreciate. The longer you remain a landowner, the more money you make. If you decide to lease part of your property to other businesses, you can revise your lease terms and increase rents according to the lease agreement you have with the tenants. You can also decide to sell the building later and earn a profit to buy a new one at a better location.

 

The equipment in the building is permanently yours

All the fixtures you install in the building for your tenants or business will be permanently yours. They could add value to the building and even bring you more money.

 

Disadvantages of buying instead of leasing:

 

You must pay the down payment

If you are buying an office or commercial building, you need first to make a down payment. Just like auto loans, these down payments usually range from 15%-30% of the building’s entire purchase price, especially if you want a loan to finance it. This money can be a lot for a small or growing business, making it almost impossible to own if your margins are thin.

 

You could lose your capital trying to own the building

You may be forced to use business capital to make a down payment for the building. Most business owners will take out a loan to finance the purchase. However, you may stretch yourself too much to meet these debt obligations, and this can impact your available credit when you go to purchase future items.

 

Other costs

Buying a building, just like buying a car, adds to your monthly costs. Since you are the new building owner, you must meet all other obligations such as liability insurance and property insurance. You must incur all charges to protect your tenants from accidents, damage, and natural disasters. To lower monthly payments for the building’s maintenance, you may have to pass on some monthly costs to other tenants. Even though the property value keeps rising, you will need to regularly maintain the building after every few years to maintain its curb appeal.

 

The pros and cons of leasing

Check out the advantages of leasing:

 

Fixed monthly payments make it easy to plan your financial future

You will receive the payment terms before moving in when you sign a lease document. Your monthly rent payment remains fixed during the lease term so that you can plan for your business expenditure early on.


More liquidity

Your business does not have to make a huge down payment when leasing. As a tenant, you only need to pay the agreed-upon rent and a refundable security deposit, then move in. The low monthly payments leave you with disposable income for business operations.

 

It is easy to qualify for a lease

Most leases don’t have as stringent requirements when compared to buying. As long as you comply with the state laws and meet the lease terms, you are good to go.

Disadvantages of leasing

 

Lease payments do not qualify you as an owner

You still won’t qualify as an owner after many years of paying the monthly rent and renewing the lease agreement. Even if you pay as much money as the price of the building, you will move out one day and leave it behind along with your entire investment.

 

You have no control over tenancy agreement restrictions

Tenancy agreements are drafted by the landlord or property managers. These agreements often put restrictions on various business operations and space usage. Tenancy agreements can restrict you from multiple activities and alterations. This lack of freedom could severely impact your business.

 

Higher monthly payments

In the long run, rent payments are costly. You will find that in 10 or 20 years’ time, you have paid enough rent to own that building – but it still belongs to another person. In addition, at the end of the lease term, you will pay the wear and tear charges from your security rent deposit. Also, early termination is very costly and can eat into your profits.

 

Looking for business properties in West Virginia? Call us now for a free consultation

It’s not easy to decide whether to buy or lease a commercial property in West Virginia. You need financial planning advice to make the right decision for your business. Depending on the stage of growth you are in and the amount of disposable income you have, the real estate experts at The PM Company can help you find the ideal property for you. We have properties available across West Virginia and can grow with you whether your goal is to lease or buy. Call 1-304-485-8000 today for a free consultation.

paper and pen lease agreement

What financials are needed for a commercial lease?

What financials do I need to obtain a commercial lease?

So your business has outgrown the garage and you’re ready to move into a newer, larger, more formal space. Congratulations, you’ve accomplished what most small businesses only dream of doing. The hardest work has been done, but you still have to find a building or office to lease, and, undoubtedly, you have questions. Do I need to submit financials in order to apply? What is the landlord looking for? What additional documentation should I have ready to present?

 

As commercial real estate experts, the PM Company has helped numerous small businesses navigate this next step. Whether you’re applying for a lease in the Mid-Ohio Valley or somewhere else around the country, follow these guidelines to improve your chances of leasing the building you want.

 

What is requested in a conventional lease application?

Before leasing a space, you may be asked a series of questions that demonstrate your reliability in paying the lease rate. You may be asked to provide information about the following aspects of your business:

  • your business history 
  • a description of the services and/or products you provide
  • references that signify your financial stability
  • past/current/anticipated revenues
  • assets that could be used as collateral
  • liabilities the company may have, and references from a financial institution 

 

What financial statements should you prepare?

Much in the same way you would approach a bank for a business loan, you will likely be asked to provide the landlord with some sort of financial documentation for your business. That documentation may include: 

 

  • prior tax returns for past 2-3 years
  • personal or business financial reports (this depends on how you are securing the financial obligation to pay the lease rate)
  • business balance sheet
  • profit and loss statements
  • bank statements for the past 2-3 months 

 

In some instances, you may be asked to provide a copy of your business filing with the state (includes business use type) and your articles of incorporation. 

 

Why are financials so important?

Your finances demonstrate your business’s ability to make regular lease payments. The equity required for construction and maintenance on a commercial property is typically much more financially intensive than a residential property, and, as a result, can greatly affect a business’s cash flow and financial stability. Landlords like to see a comprehensive picture of your ability to meet the terms of the lease. 

 

In reviewing your application for a lease, landlords may consider:

  • The type of business you run 
  • The potential effects competing businesses may have on your revenues
  • The past and current size of your business
  • The business’s growth trajectory, its profitability, and any other factors that could pose risks to the landlord. 

 

What if the landlord is asking for additional documentation?

Lease application requirements may vary by landlord. In cases where there are multiple businesses in a shared facility with high-value clientele, the due diligence requests may become more extensive. Business bank statements, personal financial statements, copies of your business plan, and even a certificate of good standing from a lending agency could be necessary to gain entry. This shouldn’t give you alarm, however. Securing a spot in a prime location may pay dividends down the road. You can enjoy greater confidence as a lessee because your neighbors and fellow tenants care as much about their location and reputation as you do. 

 

Why do the requirements vary so much?

Based on your location, the business community makeup, and local commercial vacancy rates, additional requirements can differ greatly. In regions where vacancy rates are high and tenants are harder to find, the application requirements could be as simple as providing the aforementioned financials and verification of income. Following a simple credit or background check, your lease could be approved rather quickly. 

 

Should you find yourself in a market where vacancy rates are low and landlords have more discretion on who they admit, you may be asked to provide more documentation. In these cases, you should be prepared to provide additional financial documentation that exceeds the last 2 to 3 years of financial documents for your business. Be prepared to disclose any shared partner equity, other grantors you have worked with, business or financial institution references, or even personal credit scores. 

 

While the prospect of obtaining in a commercial lease may sound daunting, you’ve likely already done everything necessary to set your business up in a phenomenal space. The hard work of building a business and achieving a level of scalability that demands a move likely ensures you have what it takes to lease your dream space so your business can be all that you want it to be. 

 

If you are looking for a commercial space where your business can grow, the trusted professionals at the PM Company (PMC) are here to assist. PMC has been serving the Mid-Ohio Valley, specializing in commercial real estate and property management, for over 35 years. For more information visit call us at 304.485.8000.

man and woman considering an item

Don’t Get Surprised by These Common Expenses When Leasing a Retail Space

Don’t Get Surprised by These Common Expenses When Leasing a Retail Space

When beginning your search for the right retail space, rent is not the only cost to consider. While it is a primary driver in your decision-making, understanding ancillary fees, build-out costs, and furnishing expenses can alter your budget and timeline when moving into a retail space. Factoring these additional expenses into your budget as early as possible will help you understand the full costs of operating in a new space. This will make your commercial real estate journey easy and stress-free.

 

Build out costs

A retail space will rarely meet every single one of your needs without some customization. Just as your business is unique and the opportunity it presents is one of a kind, many retail spaces are also unique and not one-size-fits-all.

 

Some spaces will offer a clean white space with an HVAC system but little to no furnishings. Other retail spaces will come with previously installed items. Knowing what your business needs to thrive will allow you to narrow down potential locations and find the right space for you. Consider what amenities are necessary for the interior build-out and what amenities you need when the business is up and running. 

 

Making a list of “must-haves” will give you a better understanding of what lease rate you can afford. Any extra items will need to be paid for on top of the lease itself. Some common build-out costs include shared walls, printers, shelving, and storage spaces. Your lease agent will also want to know your expected build-out projects since they’re considering the timeframe for occupancy. For many businesses, managing the build-out while also paying rent can be perilous. However, many retail leasing outfits specialize in mitigating tenant improvement costs and lease payments. Ask questions during the leasing process and work with a lessor to explain your needs. 

 

Utility costs

Just as you do for your own home, you have to pay the electric, water, gas, etc. in a leased retail space. When creating your lease budget, you should include the estimated monthly utility service cost. In a multi-tenant leased space, it’s common for leases to share common utility costs (e.g. those related to parking lot lighting, landscape management, etc). These expenses are handled in various ways, the 2 most common being Triple Net Expenses (NNN) and Modified Gross. 

 

Ultimately, you as a business owner should know what type of utility consumption your business needs in order to support operations. Your unique business needs should factor heavily into the location you chose. Can the location support your business’s utility demands? Whether you are running a nail salon or a Bitcoin mining operation, you will want to understand your anticipated water, sewer, electric, gas utility consumption in order to determine which space is right for your business. 

 

Triple Net lease fees, CAM fees, and Tenant improvement costs

 Not every retail lease is a Triple Net or NNN lease, but it is the most common lease in the market. In this lease, the property owner passes on the taxes, insurance, and maintenance fees to the tenant. This is important to understand as a tenant because it clarifies what you are responsible for and what the landlord is offering. 

 

These costs are typically passed on to the tenant because the rates themselves vary by the type of business present in the space. From property taxes, liability insurance, to common area maintenance (CAM) fees, these expenses are divided up based on the renter’s space allocation, usage rates, and other negotiated terms. Businesses who are considering leasing space in an office park or business center need to factor these types of costs into their price estimation for leased space. 

 

Unlike a stand-alone warehouse, a single home zoned for business, or another mixed-use facility, the lease rate in a business park or office building has the expectation that tenants will pay a prorated portion of the combined costs for upkeep and maintenance. As a business, you should consider what your business demands and negotiate terms that work for both parties. An open dialog with a leasing agent will help get you and your business into a building that meets your operational and financial needs. 

 

Furnishings, Fixtures, and Technology Needs 

Whether you are a high-end boutique, a new restaurant startup, or a pet toy company with a hundred or more employees, the interior needs of your retail space may matter as much as the facade when it comes to the success of your business. You should know upon entering a space what you can afford to purchase when it comes to computers, desks, lobby amenities, displays, kitchen equipment, etc. Because these items are necessary for you to open your business, it’s important to budget for these items from the outset. 

 

Factoring in purchase costs,  build-out costs, and base rent will be important in setting a move-in and opening day timeline. You will want your business to be in good form when you open your doors to the public, so working out the details on interior pieces and technology during the build-out process will save you valuable time and energy as you prepare to open the doors. 

 

Working with the right team to help you navigate the market

If you read this article and feel stressed or overwhelmed, know that you’re not on your own. All of these costs and considerations are part of any commercial lease process. Most businesses wrestle with these same questions at the outset, and leasing professionals are well accustomed to business owners who are considering their first move out of the garage into a brick and mortar space. 

 

The trusted team at The PM Company will help you crystallize your vision, find a space that fits your business, and leverage your unique value proposition to the market looking for your services. Engaging with a real estate professional early in your search will deliver the most value and return on your investment.

Community Rallies behind Local Charities through Spirit of Giving Fund

In 2007, Pat Minnite Sr. started the Spirit of Giving Fund to support local charities and nonprofit organizations around the holidays. The community has enthusiastically joined in the charitable efforts to give back to the organizations that make a difference in the Mid-Ohio Valley.

Tenants, business associates, vendors, and friends of The PM Company (PMC) raised $61,000 to be given to selected local charities. For 2021, PMC matched up to $60,000 donated to the Fund. Thanks to the community’s generous support, a total of $121,000 will be evenly distributed to thirteen area charities.

These charities were selected through an application process by representatives of the PMC. The Spirit of Giving Fund is managed by the Parkersburg Area Community Foundation (PACF), which will distribute the funds accordingly. Each charity listed below will receive $9,300 to support their work within the community:

  • Amputee Center Inc
  • Belpre Area Ministries
  • Bethel Church Equipping Center Inc
  • BrAva
  • Camden-Clark Foundation Inc.
  • Consumer Credit Counseling Service of the MOV Support Fund in Honor of Harold “Jim” Applebaum, a fund of the PACF
  • FaithLink
  • High on Hope Ministries
  • House to Home
  • Kellys Closet MOV Inc
  • O’Neill Senior Center Inc
  • Thrive
  • Women’s Care Center, Inc.

“The PM Company family greatly appreciates the support of this collective effort, and we are proud and happy to know the impact this will make on the needs of our community,” said Karmyn Conley, PMC Managing Partner. “The impact of this community’s giving has been profound, and PMC looks forward to sharing another successful Spirit of Giving with the community.”

“The Pat Minnite family and The PM Company and its associates have a longstanding and generous tradition of supporting the needs of the communities in which they do business,” said Judy Sjostedt Ritchie, PACF Executive Director. “We applaud their leadership in philanthropy and thank The PM Company and their associates for their generous partnership for the benefit of our area.”

Applications to receive support from the Spirit of Giving Fund are accepted annually with a deadline in August. Applying organizations must be a recognized 501(C)(3) nonprofit serving the vulnerable and underserved populations in Wood County, WV, and/or Washington County, OH, where the PMC primarily does business. A new application process, in partnership with the PACF, will be incorporated for the 2022 campaign and will launch Spring 2022. More information is available at www.thepmcompany.com/spirit-of-giving.