Choose your words – and fewer of them, please!
That’s me – if I’m running a conference call, I tend to talk too much — even if we have an agenda, I wander off topic and I’m sure can be confusing to anybody on the call. On the flip side, I have been on a call where the same thing happens and find myself losing focus and checking email… so presumably this is happening to others, too. We are in such a rush, we have too much on our plates, we are trying to cram in way too many meetings, every day, every week, and it all becomes an inefficient use of our collective time. And in the end, we feel like we haven’t accomplished our goals!
I am going to take my own advice and 1) SLOW DOWN; 2) STATE THE GOAL FOR ALL; 4) LISTEN TO OTHERS; 5) SUMMARIZE AND FORMULATE ACTION PLAN
Dan Rockwell, of LeadershipFreak.com, said it better in response to a “DearAbby” inquiry. Check it out.
https://leadershipfreak.blog/2017/02/25/solution-saturday-clarity-without-blabbing/
Dan Rockwell
LeadershipFreak.com
My Outlook Calendar is full – and I feel like I’m checking it hourly to remember what’s coming up — but whatever it takes, planning ahead is my best approach for preparedness, even if I’m not ‘ready’ for the group discussion. Try to remember that the others working the project may have key questions or insight that can help the team meet the goal, so allowing others time to provide unscripted input can be helpful (and may get the quiet ones to speak up)!
I’m shutting up now. — RK
Generational Shoppers – The Millennial
Having been in the commercial real estate business for 30+ years, and a shopper myself, I recognize that different generations behave and respond differently. Needs, convenience, disposable income, time all things to consider. Each generation thinks the next one has it ‘easier’, although maybe it’s just DIFFERENT. Shopping centers, malls, town centers, strip centers – all have been around for a long time, and have seen style changes. The thing that seems to be consistent is the desire for convenience. But convenience can have shades, too.
Everyone wants to talk about The Millennial — how they think, behave, respond. I’d like to say keep in mind that the NEXT generation behind The Millennial is going to be different, too! People behave in cycles. We have a new president with very different ideas of how the world should be — and change is the constant. SO, I’d say pay attention to the demographics and shifts in population, spending, housing, employment for the area where your real estate is — it’s not just about The Millennial — it’s about the individual consumer.
This is an interesting snapshot into the make up of The Millennial, if you are interested. Thank you, CBRE!
Stressing out?
We all feel pressure and stress from time to time, some more than others. How we deal with it is key to how we feel and how we SEE the world we are in. I don’t know about you, but finding the BALANCE between personal and work lives can be tricky. Spouse, children, household, and most importantly our own health is at risk if we don’t take some time to breathe… Check out this article from SHAPE.
http://www.shape.com/lifestyle/mind-and-body/why-you-should-stop-stressing-about-work-life-balance
CREW Austin to CREW San Antonio Successful Connection
The search for office space began around March 2013. Through a series of CoStar office space searches and research through CREW San Antonio brokers through the CREWBiz database, I was able to identify some office space suitable for The Stone Group’s client. After some changes in need and some added time, the CREWnection between CREW Austin and San Antonio members was successful and all parties were pleased. Thanks to Lindsey Tucker with CBRE of San Antonio who represented the Landlord.
http://www.rednews.com/2014/02/two-health-care-tenants-moving-legacy-oaks/
Why you should join Central Texas Commercial Association of REALTORS®
An interview with Eric Layne, CCIM, 2014 CTCAR Chapter President
By Rosalie G. Keszler, CCIM
January 2014 – As many licensed commercial real estate professionals have or will renew their memberships in networking organizations for 2014, the question arose by a colleague, “What are the benefits of joining CTCAR?” So, I went to the 2014 chapter president, Eric Layne, to find out.
Keszler: Central Texas Commercial Association of REALTORS® (“CTCAR”) describes itself as the only professional trade organization in Central Texas designed exclusively for all commercial real estate professionals. What does this mean?
Layne: CTCAR is the commercial real estate board for 26 counties in Central Texas recognized by the National Association of REALTORS®. CTCAR’s membership is made up of Texas real estate license holders who desire to practice commercial real estate brokerage rather than residential brokerage.
Keszler: CTCAR’s members must be licensed real estate professionals, with either a broker or salesperson license. Can a licensee with a salesperson license become a member of CTCAR if their sponsoring broker is not a member?
Layne: No, the sponsoring broker by State of Texas law is responsible for the legal and ethical practices of those he or she sponsors. CTCAR takes that responsibility a step further by affiliating with the Texas and National Associations of REALTORS® and adopting the Code of Ethics promulgated by all members of their associations. The sponsoring broker leads by example. Not all brokers are members of these associations; membership is a matter of good business practice.
Keszler: As a REALTOR®, what other membership is included with your CTCAR annual membership?
Layne: CTCAR REALTOR® members enjoy membership in NAR and TAR. REALTOR® is a licensed trademark of the National Association of REALTORS®.
Keszler: What would you say is the primary benefit of membership in CTCAR?
Layne: The primary benefit of REALTOR® membership in CTCAR is that all the benefits of NAR, TAR, and CTCAR are fully available to its members. The active commercial broker realizes savings in the operation of their own services that often out weigh the cost of membership.
EXAMPLES:
- NAR benefits include:
- Discounts for Office supplies and technological services;
- Hotel and Rental car discounts;
- A National Commercial Listing service called CommercialSearch.com in early 2014;
- REALTORS® Property Resource-147 million property records;
- Federal legislation lobbying; NAR is the nation’s largest contributor to federal candidates; and more.
- TAR benefits include:
- EXCLUSIVE access to more than 50 commercial real estate forms and contracts prepared for use in Texas by membership of the Texas Association of REALTORS®. However, non-members using these forms are subject to copyright infringement with penalties that cost far more than membership;
- Free legal advice through TAR’s staff and volunteer attorneys simple by a phone call;
- State lobbying and contributions to statewide candidates through TREPAC
- CTCAR benefits include:
- Members of CTCAR can purchase, at a discount, the services of a fully researched commercial property availability survey through Xceligent;
- The member can list all of his/her listings on the site plus have full access to the same information in other cities using the Xceligent system;
- The Xceligent system will also upload your information into the national data base of NAR Commercial Search.com;
- Opportunities to meet and get to know other with commercial brokers through CTCAR sponsored luncheons, property exchanges, commercial real estate courses, and social events;
- CTCAR’s volunteer members also participate in the development of MCE credited courses designed for commercial brokers and sales people;
- Discover opportunities to achieve REALTOR® designations that reflect your qualifications;
- CTCAR is the Commercial Real Estate Board for 26 counties in Central Texas recognized by the National Association of REALTORS®.
Keszler: Other commercial real estate organizations, such as CCIM, require its members to maintain membership in NAR. What is the difference between NAR and TAR membership?
Layne: NAR membership does not automatically include TAR membership; these are separate levels. TAR is specific to the state of Texas and provides additional benefits and resources to NAR.
Keszler: TAR provides commercial transaction forms to its members, and since CTCAR requires membership in TAR also, its members have exclusive access to these commercial forms. What types of forms are provided?
Layne: Of the 144 legal forms available to TAR members, 37 forms are exclusively for commercial use. An additional 14 legal forms are for both residential and commercial. Thus 61 % of the forms available to TAR members have commercial implication.
Keszler: Can non-TAR members utilize the TAR commercial forms?
Layne: No, non-TAR members are not allowed to use these forms. Penalties can be assessed by TAR. Typically a cease and desist order will be sent to the offending non-member. A civil violation of the US Copyright infringement carries fees of $750 to $30,000 per infringement. If a violator is charged under willful misconduct, the maximum fine is $150,000 per infringement. The forms are specific to the CTCAR member and traceable to them.
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CTCAR wants to be the go-to organization that is talking about what’s coming and how to be prepared. In addition to special events like the annual symposium and the Power Cruz, CTCAR offers monthly MCE classes, its “PIE” breakfast on the 2nd Thursday of every month at Chez Zee, and luncheons held quarterly. For more information, www.ctcaronline.com.
Context for Creativity and Innovation
On Tuesday, January 21, 2014 in a packed room at the Austin Woman’s Club in downtown Austin, CREW members and future members gathered to understand the context for creativity and innovation as presented by Margaret Gilchrist Serrato, PhD MBA AIA ASID LEED AP, Workplace Strategist with Herman Miller.
Serrato described how we are all born with a high potential for creativity. But as we age, brain synapses are lost. Memory, pattern recognition, cognition, and creativity levels decrease, due in part to low level chronic stress. Over time, the effect can be the same as if you are in a traumatic event. So, how do you stop the loss and reverse the effect?
Activities to Enhance Creative Ability: Six ways to grow new brain cells!
1) Exercise your brain with puzzles and games. Playing a musical instrument makes more neural connections than just listening to music. Dance, or learn to speak a new language. Great ways to create new synapses.
2) Connect and have new experiences. Visit new places, attend different events. Change the ‘usual’ in your everyday routine. Try reading a different magazine.
3) Practice your craft, your profession until you become an expert. Takes 10,000 hours to perfect – look at The Beatles, and Bill Gates for inspiration.
4) Rest, relax and reduce stress. Relax in nature – surround yourself with views, water, fire, stone and wood (see ‘environmental features’ following) – create “fuzzy thinking” mode so that your brain can make new neural connections. Try using the opposite writing hand and switch back and forth.
5) Be happy and have fun! Laughing with friends increases activity in the part of the brain associated with creativity. Avoid road-rage…just let it go! Remember, don’t sweat the small stuff.
6) Organize your home and work space. Creating order reduces stress and exercises the brain. Don’t be a chaos hoarder – even the act of organizing works the same way for your brain.
Serrato reviewed several creativity myths:
- “Creativity is only for creative types.” Nope; we can all have creative ideas.
- “Money is related to how creative you are.” Sorry, money is not a creative motivator.
- “Time pressure fuels creativity.” Deadlines don’t force the ideas to come.
- “Fear forces breakthroughs.” No, having more time and no fear of losing your job shows that output increases.
- “Creative people have creative ideas.” No, but creative people can have a LOT of ideas — like Thomas Edison. He had 1200 personal patents, but we only know 4 or 5.
We live in an economy that is based on innovation and creativity. Per Serrato, research in environmental psychology has identified several environmental features that affect our mood and ability to rest and relax. Our “preferred environments” and our universal preference for them come from our shared genetic heritage evolved from our African plains predecessors:
Prospect: Looking out at long views, plenty of natural light.
Refuge: A sense of shelter and safety from enclosed areas.
Change: We prefer naturally changing environments to static ones.
Water: We love being near water, even if it’s symbolic; water is essential for life.
Hearth: The center of the community provides warmth, light and food.
Nature: Patterns, colors and textures of natural materials comforts us.
Order: Our outer world reflects and shapes the patterns of our inner mind.
Collaboration: Critical for innovation, influenced by layout, distance and visibility.
Creativity is important because in our free enterprise, capital-based economy, creativity drives success. Companies with research, creativity and innovation at their core include Cisco, Microsoft, Apple and Google. “The ability to apply creativity to solve problems is an important measure of job and personal satisfaction,” advised Serrato.
Entry-Level Job Opportunity: LEASE ADMINISTRATOR
The Stone Group Corporate Real Estate group is looking for immediate hire of a part of full-time Lease Administrator to work with its Transaction and Property Management teams in their Austin office.
Job Description – Lease Administrator
Salary starts at $15 per hour. Send resume to storres@thestonegroupcre.com
CREW Network: Membership Advantages
The end of the calendar year is always the most expensive time of the year for me, both personally and professionally. Year end brings us back-to-back holidays, gifts for family, friends and clients, parties and get-togethers (never empty-handed), and then there’s the dues and membership renewals that really add up to a lot of moolah. As we make our list of new year resolutions, and plans for the year ahead, one of the tasks I try to repeat is a recap of the previous year’s expenses and evaluation of wants vs. needs, with special attention to areas where I can be more effective with my precious dollars.
When it comes to CREW Network and CREW Austin, I don’t think twice about the NEED to renew my membership. Compared to other commercial real estate organizations, CREW’s dues provide both national and local membership advantages. The intrinsic value of membership, in my opinion, is two-fold: 1) Member-to-member business; and 2) Relationships. On top of this, add in all of the resources provided by CREW Network, CREWBiz (that provides immediate access to almost 9,000 other professionals across the US and Canada), the incredible pool of talented members available in your own home town, and an incredibly fun and easy way to network with like-minded women and men at monthly luncheons, annual programs like UCREW and CREW Careers, and other member-only meetings and events.
I have been a part of CREW Network and CREW Austin since mid-year 2004, very quickly becoming an active part of the leadership ladder, and as a past-president continue to enjoy staying active among the next group of leaders as they learn and grow together. This year’s officers and board of directors, led by Sarah Scott, the 2014 chapter president, will continue to keep the goal of supporting women in commercial real estate as the focus. All goals and paths lead to the success of each of its members.
The beautiful thing about CREW is that it is such a natural way for professional women and men to get to know each other, and share and refer work to and with each other. Networking can be a scary word for so many – but not with CREW! If you have volunteered to serve on a committee, you know what I am talking about. The camaraderie is natural, simple and leads to some great business relationships. If you haven’t yet chosen a committee to work on, don’t hesitate – teamwork is a vital way to hone your own skills, learn the ropes of CREW, and climb that leadership ladder for yourself. And, it’s a great way to get to know your fellow committee members and what they do… and for them to get to know YOU and what YOU can offer them. It’s no secret that you have an ulterior motive for your participation in a networking organization; now take advantage of your membership!
CREW Network exists to influence the success of the commercial real estate industry by advancing the achievements of women. For more information, www.crewaustin.com.
Texas Water Development Board – Work Session Summary
From the desk of Buddy Garcia, Modern Stewardship
Buddy provided a summary of the discussion from the Texas Water Development Board (TWDB) work session that took place October 9, 2013. Best description: “Its a ham and eggs breakfast… Everyone wants to be the chicken, no one wants to be the pig.”
Office Condo Conversions 101
CTCAR – August 2013 Luncheon, August 29, 2013
Maggiano’s Domain, Austin, TX
By Rosalie G. Keszler, CCIM
The Central Texas Commercial Association of Realtors (CTCAR) held its monthly luncheon to educate about office condo conversions. The panel of experts included Robert “Bob” Burton of Winstead, Gay Ruggiano of The Kucera Companies, and Syd Xinos, PE of Doucet & Associates.
Burton started the discussion about conversion regulation. The State of Texas has no state-level regulatory requirements per the Texas Property Code, Texas Uniform Condominium Act, Chapter 82. The owner and developer simply need to comply with each other.
Residential and/or office condominiums are an alternative to subdivision platting. This is vertical subdivision of a physical nature, per Burton. One can subdivide any property through the “Condominium Declaration”. This document tells everything you need to know for a prospective purchaser/client about the condo.
One of the most important aspect of the Declaration document is to describe the unit – a 3-dimensional space – for the ultimate end-user that will hold fee simple title.
There are two real estate components: 1) the unit; and 2) common elements, owned in common by all project owners. Anything that is not a “unit” is common element, stated Burton. Units are maintained by the individual owner, and common elements are maintained by the condo HOA.
Of critical importance is the description of the unit. How has the Declarant described the unit? In the old style, the “lazy developer” would include walls, floors and ceilings. But if there is a dispute such as a water penetration issue, or electrical panel problem, this description fails.
The alternate and more current way to describe the unit is the “Parametrical Boundary”. The real property interest is described in three dimensions. Describing a 3-dimensional space in a 2-dimnsional piece of paper:
1) Texturally describe (boundaries: upper, lower, lateral, included in the condominium declaration);
2) Condominium map (visual representation of the unit and all common elements).
There are specific instructions on how to prepare this in the Texas Condominium Act. When hiring a surveyor, make sure they are familiar with the specific provisions of the Act.
Syd Xinos took over the microphone to discuss conveyance. For proper conveyance of the real estate interest, you must have the legal description. Metes and bounds are proper to identify the property, but common now is a description that includes the lot/block, final plat recorded with the legal description.
Condominium “Plats and Plans” is addressed in the Condominium Act. Xinos advised that in the 3-dimensional depcitions with elevations, ceiling/floor, layout, all tied very closely to the Declaration prepared by an attorney – make sure all are defined and called the same thing. Assigned parking spaces to a particular unit should be in the Plats and Plans document. And, warns Xinos, make sure to certify that they comply with the Uniform Condominium Act, as certified by a surveyor/engineer. The Plats and Plans document carefully defines what is being purchased (or sold). The engineer uses building plans to create the Plats and Plans document. Per Xinos, there are companies such as Dimensions Floorplans, with a nod to Mary Lawrence, CTCAR Director, that can perform the laser description and define air space.
Xinos covered “legal stuff”: The Declaration has allocations. This tells a purchaser what their responsibilities are with respect to sharing costs incurred in the community. Common area, exterior of bulding, major mechanical/electrical/plumbing/ costs – all allocated. These costs may be uniform or based on square footage, and dictates the percentage of ownership in the condo. Each individual unit owner gets a tax bill — value of unit and value of undivided common elements (theoretically the higher %, the higher the tax bill). The Declaration will define all restrictions and special rights. Example of office type use restrictions include no pets, hazardous activities, competing businesses, etc.
Special rights – 2 bundles: 1) Developer has the right to control the administration of the condominium association for a certain time. The developer in control will appoint the majority of board members with respect to common elements, typically 120 days after 75% of units are sold/conveyed; and 2) Developer rights are included in the Texas Uniform Condominium Act. The developer has the ability to create units, subdivide units, have sales office on site; these rights don’t go away unless the Declaration says WHEN these rights go away — 5 yrs, 10 yrs?
Due Diligence Homework: Look up the Texas Property Code 82.153 and learn about commercial use restrictions on office condos. The seller of a condo unit under contract for sale can waive the compliance with Subchapter D with purchaser protection. If project is restricted to office use, can waive. 82.153 shows all the things you should be asking for when doing your due diligence – answers what is this condo all about? Budget, insurance, allocations, estimate of monthly statements, primer for acquisition of office condo. Ask for this to protect client’s interest.
Gay Ruggiano was passed the mic to address marketing: The Good & the Bad (she left off the Ugly).
The Good:
- Small users are allowed to have affordable ownership = BEST
- High finish out like MOB, don’t want to put $390 psf finish-out into her lease space (over and above LL’s TI). So if you own your space, you now own the investment in your space.
- When you package real estate ownership with business, the return is much greater on resale side, especially with high tenant improvement needs to own their space. The medical community is buying.
- Cheaper to own vs rent (low interest rates). An owner-occupied unit can get lowest inerestt rates. Allows business owner not to have to manage the common areas; HOA/Management handles the common areas. Costs are less: Examples, umbrella insurance policies vs stand-alone office. Can qualify for discounts on wide variety of things. Economy of scale: Maintenance costs, everything goes down.
- Condo owners take a pride of ownership. Condo projects always look good, well maintained, owners aren’t going to let management slack off on the job.
The Bad:
- Are you a control freak? Condos are probably not for you. Have to share, i.e. parking lot! What are the parking ratio requirements? Understand the parking ratios, if unassigned parking.
- Reserves for Replacement: Owners are not happy about somebody else holding their money, but if it’s built into declaration, have to abide by it and you have a credit when you sell the unit.
- Condo decs have to be amended frequently. Mary Lawrence with Dimensions can reassess common area, unit info, etc.
Ruggiano further explained that to properly describe what is being purchased, you have to be able to understand the condo declarations. Example, balconies should not be common element, nor should access to roofs, stairwells or types of access to get to A/C units – these should be defined as “limited common elements”. Be sure to DESCRIBE what is being purchased. The buyer is not paying for the balcony, but they are paying for the access ladder to A/C.
To lease the unit, Declarant will need to do BOMA standard measurement to properly charge unit owners’ share of NNN expenses. Properly define the rental rate and any other requirements. If you leave it vague, you’ll have problems in the future. Brokers – need to explain and identify; liable for misrepresentation down the road.
CTCAR wants to be the go-to organization that is talking about what’s coming and how to be prepared. In addition to special events like the annual symposium and the Power Cruz, CTCAR offers monthly MCE classes, its “PIE” breakfast on the 2nd Thursday of every month at Chez Zee, and luncheons held quarterly. For more information, www.ctcaronline.com.