Leasing

Lease Opportunity – Historic Prescott

February 28, 2016 By Donald Teel Leave a Comment

Drive through restaurants are in demand. Downtown drive through restaurants are in greater demand. Now, add to this fact that we have a former Jack in the Box drive through restaurant now available for lease and it’s located just three blocks from Prescott, Arizona’s historic downtown square and Whiskey Row.

Everyone in Prescott, and most repeat visitors, know the location. The traffic is an enormous 40,000± vehicles per day in the peak season.

Located on East Gurley Street, the property is on the main ingress/egress for nearly 1,000,000 annual visitors to Prescott.

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In order to prepare the property for immediate availability, the initial demolition work has been completed by the Landlord, at Landlord’s cost. Environmental mitigation and clearance report is available.

The property was recently sold to a new owner and the City of Prescott completed curb, sidewalk and entry work on the west side of the property. According to Donald Teel, a Principal partner with Commercial Properties Northern Arizona, “This property is undoubtedly the best drive through entry and exit location for the downtown area.”

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For current availability and leasing information, please contact Donald Teel by email or, if you prefer, contact him by phone at (928) 777-8100.

Outside the Box Market Thinking

September 7, 2014 By Donald Teel Leave a Comment

Market thinking is critical to commercial property owners. Thinking small is, well, putting it bluntly, an old paradigm and counter productive in today’s big CRE world.

Network largess is now a central key to lease marketing. Shrinking your exposure is deadly, while opening the marketing floodgates encourages multiple tributaries leading to more tenant activity, more LOIs and more executed leases.

In too many cases property owners have gotten twisted up in the pretzel of narrow representation, carrying the concept of going solo to new detrimental heights.

Learning over Lunch

A few years ago I met with a southern California owner at the Biltmore in Phoenix, Arizona who had invited me to lunch discuss and consider marketing his retail properties in cooperation with more than one broker each having and “exclusive” right to lease agreement.

Initially, the concept short circuited my concept of representation but as I listened to this seasoned owner my thinking began to change. Of course the so called “exclusive” was actually a modified arrangement where more than one listing broker consented to step aside in the event another procured an executed lease. Yes, the devil, as always, was in the listing agreement details and convincing multiple brokers to share a so-called “exclusive” listing seemed more than challenging.

The conversation broadened my thinking and opened me up to new representation blueprints that can help owners and add possibilities to a broker’s inventory.

The notion of broadening exposure in this way included many brokers working on the same property rather than simply one. The model began to have some appeal in an overbuilt market where owners require more, not less, tenant exposure and leasing opportunities.

The Big, Big, Big CRE World

With the advent of websites, blogs, YouTube channels with video sharing permissions, LoopNet, Twitter, Facebook, LinkedIn, Google+ and the myriad of other avenues available to owners, it’s my opinion that the power of the multiplier is already at work…and, therefore, why not harness this power?
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The Art of “Shaping the Deal” – Kid Style

August 31, 2010 By Donald Teel Leave a Comment

When Donald Trump wrote “The Art of the Deal” he became an industry authority figure for knowing or, at least claiming to know, how to make deals…deals that work.

Has anything changed since Trump wrote his 1988 best seller? Yes, a lot has changed. The fundamentals of deal making have not changed and perhaps they never will.

Making deals is one thing…now, however, the renewed skill that is most in demand is how to shape the deals we are making.

Due to today’s unique economic times, I’m discovering there is a big difference between securing signatures and shaping a deal for long term performance.

In fact, shaping the deal may be the requisite skill now in most demand because there are fewer deals to be done and the deals that are getting done require more perseverance and targeted thinking.

Negotiating Breakfast with My Daughter

Almost every day, we are all negotiating something. I did it this morning with my 9-year-old daughter. We negotiated about her breakfast. She wanted chocolate donuts, not one, but two! Once we formulated the premise for the sign-off, i.e., what each side wanted, we then had the core of the deal.

My position was clear. “You cannot have donuts for breakfast.” Her position was, “Donuts is the only way to make this deal work.”
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Sun Bell Plaza – Gateway Properties

August 9, 2010 By Donald Teel Leave a Comment

Bell Road in west Phoenix is one of the area’s busiest corridors. It connects traffic from the metro market and the 101 Loop to the vast retirement Mecca of Sun City, Sun City West and Sun City Grand, Arizona.

When Max Taylor and Company, LLC entered the market with its acquisition of Sun Bell Plaza, Bell Road was two lanes.

Sun Bell Plaza was the premiere gateway to Del Webb’s Sun City and there were few retail strip centers along the corridor, much less the now famed Arrowhead Mall with its renown mash-up of surrounding retail properties that make Bell Road a magnet for shoppers, Spring baseball and concert enthusiasts.

Sun Bell Plaza

Sun Bell Plaza, located at 94th Avenue and West Bell Road in Sun City, Arizona is an example of what I call a “Gateway Retail Center” as it straddles both sides of the main corridor (north and south) at the very entrance to Del Webb’s Sun City retirement community.
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Road Kill: Tenant Trough, Part 2

May 12, 2010 By Donald Teel Leave a Comment

Here we are again, with time on our hands to engage in a little Commercial Real Estate Road Kill where we can shoot the breeze about CRE. This is a continuation of my rambling discussion about the current “The Tenant Trough” that is impacting office and retail owners.

This was shot while tooling down Interstate 40 between Flagstaff and Kingman, Arizona. It’s all part of a new feature for this blog entitled CRE Road Kill. Stay tuned for more CRE Road Kill.

Donald Teel is a Senior Associate and Principal with Arizona Commercial, an Arizona commercial real estate brokerage and property management firm, headquartered in Prescott, Arizona. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Battle of the Bulge – Buying Down the Bloat

March 30, 2010 By Donald Teel Leave a Comment

bloated Want to know what I think? There is not going to be some cataclysmic, spin-on-a-dime turn-around for small and medium commercial real estate owners. This time, like no other time, we are in a long haul climb up the cliff face of mount cash-flow.

We are in a kind of real estate battle of the bulge. We have too much space (the bulge) and not enough users to quickly alleviate the bloat of vacancies. It is true, we have seen some spurts and sputters, which have caused some to optimistically think and even say, “The recession is over, we’re coming out of it.”

Everything I read, hear, view and all of my experiences at the street level are telling me the battle of the bulge is not over and the trick of trade for survivors is the ability to buy cash flow and to buy it now. Yes, you heard it correctly. Owners need to change their posture and assume a position of cash flow deal makers.
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Another Very Simple Leasing Tip

March 25, 2010 By Donald Teel Leave a Comment

After a few years in the business, things start looking the same. Property ads read the same…photos seem similar…on and on it goes. Of late, owners have been looking for ways to make their property stand out from the crowd as unique. Here’s another very simple leasing tip for owners of just about any size property of any variety.

Donald Teel is a Senior Associate with Arizona Commercial, an Arizona commercial brokerage and property management firm. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Owner Tip #172 – Pick “A” or “B”

February 15, 2010 By Donald Teel Leave a Comment

We are in an option market…tenants have an increasing array of space options available to them, whether office, retail or medical. My advice to owners is simply; if you are in an option market, create and control your own options.

leasing options - 172

It is a competitive and nervous leasing market and therefore, it is wise for owners to abandon the “one-size-fits-all” approach to leasing.

Lease program development requires a careful examination of the prospective tenant’s business needs and qualifications. Whether the commercial real estate market is Prescott, Arizona, Tucson, Arizona or Phoenix, Arizona, presenting lease options to a prospective tenant can work well because options are non-threatening and they empower.

It is entirely possible that some leases can be optioned to the tenant where street rate is actually exceeded in years 4-5 of an initial term. In a market filled with vacancies and tenants seeking the best value in exchange for their commitment, it makes sense to offer optional leasing programs, which empower the tenant (let me give you a hint, they already have the power) to exercise the power of choice.

Vacancies are increasing and owners are competing for a limited number of truly qualified tenants. The option approach is another opportunity for economic performance. It will be some time before we can say to tenants, “The rate is the rate…” and have them sign off with little resistance.

“Market Float” – Tip #114

February 9, 2010 By Donald Teel Leave a Comment

Owners are experiencing significant leasing pressure and the market is beginning to pinch their revenue stream. In some cases the pinch is like a kink in a water hose. I’m developing float strategies for clients. It looks like another 12-24 months before we get back to shore. Here’s tip #114:

tip 114

Freddie’s Back and He’s Your Tenant!

November 25, 2009 By Donald Teel Leave a Comment

freddie krueger 200 Owning commercial investment real estate requires a lot of hard work, discipline and knowledge in order to create a successful investment.

Tenants come in two forms, good tenants and not-so-good (okay, go ahead and say it, “bad”) tenants. There seems to be no middle ground.

Tenants are capable of odd if not bizarre behavior and often they succumb to the same economic pressures impacting owners and landlords. Pressure can create abnormal responses in any person but when those pressures find their fundamental genesis in the economy, expect surprising tenant behavior.

Stories I have heard or read about lately make some tenants sound like Freddie Krueger…a bad Nightmare on Elm Street.

How to Handle the Next Nightmare. Whether on Elm Street or a strip mall in Atlanta, if you are a commercial owner, landlord, broker or property manager, you are going to eventually meet Freddie and have a nightmare tenant on your hands.

Dealing with Mr. Krueger begins with tenant screening and qualifying. If there was ever a precept that was violated by many owners during the market run-up from 2000-2006, it was qualifying tenants.

However, even after qualifying tenants economic and other factors can erode the performance of any tenant, creating desperation and a propensity to go sideways.

Owners can reduce but not totally control the “Freddie effect” by bearing down on the up-front analysis of the tenant. Controlling a future nightmare on your street begins with qualifying the tenant but it does not end there…read on.