Chapter 19 Commercial and Industrial Real Estate1 New Jersey Real Estate for Salespersons and...
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Transcript of Chapter 19 Commercial and Industrial Real Estate1 New Jersey Real Estate for Salespersons and...
Chapter 19 Commercial and Industrial Real Estate
1
New Jersey Real Estate for Salespersons and Brokers
By Marcia Darvin SpadaThomson/South-Western
Copyright, 2006
Chapter 19 Commercial and Industrial Real Estate
2
Chapter 19
Commercial and Industrial Real Estate
Chapter 19 Commercial and Industrial Real Estate
3
Chapter 19 Key Terms
Asset based loans
Brownfield and
Contaminated Site
Remediation Act
Debt coverage ratio
Expense stop lease
Industrial
establishment
Industrial Site
Recovery Act (ISRA)
Rent escalation clause
NJ Franchise Practices
Act
NJ bulk sales reporting
requirements
Chapter 19 Commercial and Industrial Real Estate
4
Types of Commercial and Industrial Property
Multi-family
Office
Industrial
Retail
Health Care
Brokers must research demographics and competing properties
Chapter 19 Commercial and Industrial Real Estate
5
Commercial Leasing
Building amenities
Type of lease
Lease duration
On-site management
Chapter 19 Commercial and Industrial Real Estate
6
Concerns of Commercial Tenants
LocationLocationLocationLocation
Building designBuilding designBuilding designBuilding design
Effective rentEffective rentEffective rentEffective rent
Chapter 19 Commercial and Industrial Real Estate
7
Commercial and Industrial Site Analysis
Community acceptance
Mora-torium
Feasibilitystudy
Zoning
Physicalsite
Site
Chapter 19 Commercial and Industrial Real Estate
8
The NJ Brownfield and Contaminated Site Remediation Act
Reimbursement to
owners who address
contamination
Liability protection
for developers, users
and lenders
Covenant not to sue
from NJDEP
Protections apply to
innocent parties-
those who did not
cause contamination
Chapter 19 Commercial and Industrial Real Estate
9
Industrial Site Recovery Act
Sale, closure, or transfer of industrial property
Industrial establishment
NJDEP
Chapter 19 Commercial and Industrial Real Estate
10
Commercial Financing
UnderwritingUnderwritingUnderwritingUnderwriting
Lending Lending ratiosratios
Lending Lending ratiosratios
Debt coverageDebt coverageratioratio
Debt coverageDebt coverageratioratio
PropertyPropertyanalysisanalysis
PropertyPropertyanalysisanalysis
CreditCreditworthinessworthiness
CreditCreditworthinessworthiness
Chapter 19 Commercial and Industrial Real Estate
11
Business Loans
Creditline
Creditline
LeasingLeasing
EquipmentEquipment
TermTerm
FactoringFactoring
ContractfinancingContractfinancing
Assetbased
Assetbased
Shortterm
Shortterm
LoanLoan
Chapter 19 Commercial and Industrial Real Estate
12
Transfer of Franchises
Franchise
An arrangement in
which one grants to
another a license to
use a trade name, or
other characteristic
NJ Franchise Practices Act
If a franchisor wants to deny the transfer of a franchise, there must be material reasons relating to character, finance or business experience.
Chapter 19 Commercial and Industrial Real Estate
13
New Jersey Bulk Sales Reporting Requirements
For those who make
a sale, transfer or
assignment of
business assets not
sold through the
usual course of
business.
Purchaser must
notify NJ Division of
Taxation 10 or more
days before taking
possession of assets.