Estate Expert - 01

ESTATE EXPERT

01 Nashville Commercial Real Estate 4th Quarter 2012 realty.elizabethgatlin.com

NASHVILLE MARKET TRENDS

BOLD NEW CITY DEVELOPMENTS

TO OWN OR TO LEASE

The next big boom city - 3rd quarter market report and what to expect for 2013 rates.

Who is building where? Get a sneak peak at how the face of Nashville is changing.

When does owning make sense? Another look at the own vs. lease debate.

The Economy of Football

How the Tennessee Titan’s success will effect your real estate this year.

PLUS The worst Tenants in real estate and how to protect your investment once they are yours.

Chas Hawkins Co., Inc. CORFAC International

ESTATE EXPERT

CONTENT 6 THE ECONOMY OF FOOTBALL

How Nashville’s pro-sports seasons effects your real estate opportunities.

10 NASHVILLE MARKET TRENDS The next big boom city - 3rd Quarter market report and what to expect for 2013 rates.

14 SALES COMPS

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Not all sales comparisons are created equal. Look for these circumstances to better understand the differentiating factors.

16 DEAL SPOTLIGHT

HEALTH CARE AND EDUCATION HCA and Vanderbllt both have big plans for mixeduse developments to the West.

Local commercial listings that have deal written all over them.

18 DEVELOPERS CORNER Bold new city developments. Who is building where? Get a sneak peak at how the face of Nashville is changing.

22 TO OWN OR TO LEASE When does owning make sense?

Another look at the own vs. lease debate.

26 EVENTS CALENDAR

Local events to enjoy with family and friends this season.

27 TERRIBLE TENANTS SOLVED

26 GET OUTDOORS THIS SEASON Tennessee is beautiful this time of year. Beat the tourists and and attend these featured outdoor events.

How to handle the worste Tenants in real estate while protecting your investment.

28 FEATURED SERVICES Make the most of your real estate by capatalizing on these featured services.

30 TAKE THE LEAP TODAY Meet your new team of real estate experts and let us help you today.

ESTATE EXPERT No. 01 · October 2012 · Year 1 · EDITOR Elizabeth Gatlin CREDITS Images are taken from various sources. CONTENT Written by Elizabeth Gatlin unless otherwise noted SIGN UP visit www.realty.elizabethgatlin.com for more information DISCLAIMER Chas. Hawkins Co., Inc. makes no representation or warranty, expressed of implied, to the accuracy of the information contained in this publication, and it is subject to errors, omissions, changes, withdrawal from the market, and other modifications without notice. No guarantees are made to the accuracy of the articles or implied information.

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ESTATE EXPERT

EDITORIAL

HI, Welcome to Estate Expert - A quarterly report geared towards Nashville’s leading commercial real estate decision makers.

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the fall season has a lot in store for developing Nashville real estate. As companies either gear up for the holiday shopping season or bunker down for the in-office cold winter months ahead, now is the perfect time to have an eye and ear on the changes happening in our local communities. Nashville is growing rapidly despite the national financial situation, paving the road for an ever increasing prosperous local economy here on the home front.

MAINTAINING STAMINA One of the biggest challenges for companies looking to expand or decrease their real estate portfolios this season will be maintaining

stamina through this uncertain economic period. Now, however, is not the time to watch idle from the sidelines. To have a real advantage in this market you have to be calculated and quick with your actions while everyone else is either distracted, or unfocused.

The biggest wins always come when the other team’s players are tired and worn out.

A SEASON TO REMEMBER The real estate opportunities this quarter are endless. Make this your time to get back in the game.

Let us help you refocus your goals and intentions concerning your comany’s real estate needs and join the ranks of those big players actively changing the face of Nashville.

Elizabeth Jewell Gatlin - VP, Brokerage Chas. Hawkins Co., Inc. / CORFAC International

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LOCAL FLAIR

ESTATE EXPERT

Nashville Calendar 12 Months of Nashville for your office in 2013.

Go ahead. Plan ahead at Cafepress, $25.

METRO SWAG Spice up your life with these Nashville ideas and deals.

I BELIEVE IN NASHVILLE T-SHIRT Women’s and Men’s sizes on Etsy .

Hand made, only $25.

MUSIC CITY AUTOGRAPHS Wear the same coyboy boots to all the local concerts and games? Get them signed by the Nashville stars.

PREDS IPHONE CASE Get your claws out and purchase this super cool iphone case. Etsy for $14.

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ESTATE EXPERT

EXPERT AREA

3 MILE RADIUS What happens if you focus your real estate investments on one of the biggest boom cities in the nation? Real Estate portfolio success.

EXPERT AREA Estate Expert focuses soley on happenings in the Metro Nashville area.

CORRIDORS Nashville Real Estate - 12 Major Corridors, 50 miles of Opportunity.

CORRIDOR CONNECTIONS

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Gallatin to Woodland and Main Lebanon Pike to Hermitage Avenue Murfreesboro

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Pike to Lafeyette Nolensville Pike to 2nd Franklin Pike to 4th 12th Avenue South to 8th 21st to Downtown

WHY NASHVILLE? Nashville real estate is beautiful. It is historic and varied. After all, there is a deep heritage here that other places do not have and the people really want to be here.

Nashville located companies care and give back.

All of these things make our clients the

best people to work with. We understand Nashville and how the urban landscape continues to change and grow. We also understand the opportunities available to companies interested in metro real estate just beyond the downtown core and still connected to it all.

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West End to Broadway 9. Charlotte Avenue 10. Centennial Boulevard to Jefferson 11. Ashland City Hwy to Clarksille and Rosa Parks 12. Dickerson to 1st

GO INFILL REDEVELOPMENT is one of the greatest real estate opportunties for growing cities such as Nashville. There are plenty of available parcels ready to be filled by valuable local businesses.

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TENNESSEE TITANS Scoring a touchdown could give your real estate extra revenue

ESTATE EXPERT

ECONOMICS

TEXT ELIZABETH GATLIN PHOTOS VARIED

THE ECONOMY OF FOOTBALL

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what do you do when your favorite team scores a touchdown? You jump up and down, throw your hands in the air and you might even do something unexpected like bear hug your neighbor. As your adrenaline gets pumping and before you even know it, you are buying another hotdog for the closest five people in your section. A win could equate to you spending even more money if you are the gambling type or if you just like to celebrate like the rest of the raging fans in the stadium. The last thing on your mind is your real estate, right?

BELOW Do you instantly feel a surge of adrenaline when your team is about to be tackled?

You are invested more than you know.

only 59% majority. The economic stimulus given to the local economy surrounding pro sports teams has in many studies proved to be negligible as most of the money being spent does not go directly to the retail and service markets. But a hard look has yet to be given to the economic impact WINNING in pro sports has

You just might have a bigger stake in that next touchdown than imagined. Real estate prices are market driven and have a lot to do with social perception. Your pocket could feel the effects.

on local real estate values and consequential social activities and perception.

For instance: A winning team is able to boost the collective confidence of its fans, which in turn creates tangible results, says Indiana University psychology professor Edward Hirt. In his study of Big Ten basketball, Hirt found

DOES WINNING BEGET SPENDING? Remember when Adelphia Coliseum was built? The whole city got involved in the debate as it’s approval squeezed by with

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ECONOMICS

ESTATE EXPERT

that many fans identify so strongly with their teams that victory and defeat become personal. On a range of tests, fans basking in their team’s reflected glory after a win felt more optimistic about their own abilities, from mastering mental puzzles to resisting romantic rejection.

This sense of confidence and camaraderie has far-reaching benefits. “In this country, we can’t even agree on a bill in Congress,” says Dr. Richard Lustberg, founder of the Web site Psychology of Sports. “But the city of New Orleans is united around the Saints—the tremendous degrees of euphoria, connectedness, this provides, all the psychological benefits … you can’t underestimate those kinds of connections.”

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ABOVE Tourists are an incredible source of revenue for your business. Get your real estate ready for the crowds.

RIGHT Tailoring your store to be sports friendly could increase game day revenue.

WINNING PERCEPTION So here we are in 2012, and it is hard to even imagine Nashville without having a pro football team. Since it’s opening in 1999 Nashville’s population has only increased by 6.97% while property tax revenues have increased

an incredible 77.56%.

People perceive our sports teams to be a positive addition to our city, even if the numbers don’t always add up. After all, you never hear someone say they wished LP Field had never been built unless they are stuck in traf-

ESTATE EXPERT

ECONOMICS

What is the difference between a win or a lose? People celebrating at the local hot spots or sitting in their cars.

RIGHT When traffic gets really bad, people try to stick around longer win or lose.

fic trying to get over the river to East Nashville.

A TOUCHDOWN IN YOUR MARKET One of the ways economists do see changes in spending is directly on “sports type activities� and in closely adjacent areas to a professional sports stadium or arena. Consumers spend more of their discretionary income on sports-related goods which is then offset by those same consumers spending less on other things. Thus, no new NET economic activity, but definitely a change in spending habits and money being poured into specific local venues.

DISTANCE AND VALUE So how close do you have

to be to reap the benefits of this winning spending? Using transit oriented development as a case study: anywhere between a 1/2 to 1 mile radius from the site would provide sports fans the opportunity to walk to local hotspots and consequently increase the

JOIN US AT THE GAME

The CHCO office is full of big sports fans, and by big we mean BIG. Give us a call before the next game and we will look forward to seeing you there.

perceived value surrounding that real property asset.

KEEPING SCORE Most of the metro area real estate we work with benefits either directly or indirectly from professional sporting events. Even the Sounds baseball stadium brings in spending at local restaurants from fans enjoying the game with their families. Having strategic real estate assets along the major corridors leading to and from professional sports facilities is one way to boost your real estate portfolio investment. Strategically owning and leasing these properties with retail and service facilities is mind is an incredible opportunity to captivate and capture this very enthusiastic and energetic fan based target market.

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MARKET TRENDS

ESTATE EXPERT

NASHVILLE MARKET TRENDS 3rd Quarter Market Report The 3rd quarter ended on a positive note with 1.4 Million sf of positive absorption market wide between Nashviile’s Office, Retail, and Industrial real estate.

NOTABLE OFFICE LEASE Burton Hills II 17,541sf Keller Williams Class A

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he Nashville Office market continued its positive trend posting 111,740 sf of positive absorption for the quarter bringing the YTD number to nearly 300,000 sf. Overall rental rates are increasing while vacancy rates continue to decline, resulting in a whole point less than 3Q 2011.

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NOTABLE OFFICE TRANSACTION 105 Molloy: +42,017sf Asurion Class B

NOTABLE RETAIL LEASE 3916 Clarksville Pike 16,600sf All Things Possible Bargain Convenience/Strip Center

NOTABLE OFFICE TRANSACTION The Pinnacle at Symphony Place: +46,390sf Butler Snow Class A NOTABLE INDUSTRIAL TRANSACTION 1717 - 1725 Elm Hill Pike : -60,000sf Captiain D’s Flex/R&D

The Nashville Retail market had an upward swing this quarter, posting 185,044 sf of positive absorption, bringing the YTD number to nearly 100,000 sf.

Vacancy rates have finally inched below the 6% mark, largely due to the 3 point drop in the Southeast Corridor this quarter.

The Nashville Industrial market made a huge impact this

quarter with over 1.2 million sf of positive absorption, sending the YTD number to just over 3 million sf of positive absorption.

The overall vacancy rate dropped in the the single digits for the first time in years due in large part to the vibrancy of the East and North submarkets.

XCELIGENT, INC. The above charts and data have been compiled from “3Q 2012 Market Trends”

by Xceligent, Inc. All Rights reserved.

ESTATE EXPERT

MARKET TRENDS TEXT XCELIGENT, INC. PHOTO GOOGLE MAPS

MARKET SECTORS TO LOOK OUT FOR

OFFICE

RETAIL

INDUSTRIAL

Total vacancy rates are down from 10.6% to 10.2%. 105,662 sf of Class A Office space was absorbed this quarter. Class C space has the highest vacancy rate at 20.7%.

Total vacancy rates decreased significantly from 6.2% to 5.8%.

Community centers had 60,336 sf of negative absorption this quarter. Regional centers have only a 1.2% vacancy rate.

Total vacancy rates are down from 10.07% to 9.25%. Warehouse/Distribution had a positive absorption of 651,795 sf this quarter. Light industrial has a low 4.5% vacancy rate.

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LEASE RATES

ESTATE EXPERT

OFFICE Office Rental Rates: Metro Nashville lease rates are closer to the top of the ranges shown.

(Left)

XCELIGENT OFFICE AVAILABILITIES MAP Available office real estate in Metro Nashville. (Right)

RETAIL Retail Rental Rates: Metro Nashville lease rates are closer to the top of the ranges shown (Below)

OFFICE LEASE RATES

LEASE RATES Office lease rates are on the rise, while both Retail and Industrial rates have shown a slight decrease.

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he largest blocks of available space for all Office, Retail, and Industrial real estate are between 25 to 50K. The downtown core and surrounding corridors have limited 50 to 100K office availabilities and little to no available retail space within the 50 to 100+K range. Industrial spaces are vaired across the market with location dependant availabilities in all price ranges except to the west.

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RETAIL LEASE RATES

INDUSTRIAL Industrial Rental Rates: Metro Nashville lease rates are closer to the top of the ranges shown.

(Right)

INDUSTRIAL LEASE RATES

ESTATE EXPERT

LEASE RATES

AVAILABLE OFFICE SPACE

CLASS A OFFICE SPACE: While visiting the offices of Bradley Arant Boult Cummings for an educational seminar I couldn’t help but notice the sparkle and pride of the people working there. They moved into the Roundabout Plaza in January of 2011 and have been enjoying the Class A office space ever since. The view of downtown was amazing and the parking garage

was clean, fresh and convenient.

When asking how they liked their space one woman was all smiles, noting how much she loved the location, the views of the building, and the convenience to all the surrounding stores and restaurants. She said it was enjoyable to just walk out for lunch without having to go fight the downtown crowd, the perfect blend and mix of being in the city without having to be downtown.

We love it here. The location is central. It is easy to get in and out.

And just look at our view of downtown.

We have all of the convenience and none of the hassels.

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SALES COMPS

ESTATE EXPERT

SALES COMPS More Than Meets the Eye. A new look at the ”Comparable Sales Approach” and it’s complexities.

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If you have ever received or reviewed an appraisal on a piece of real estate, you will recognized the phrase

“Comparable Sales Approach.”

The Comparable Sales Approach is a method of valuing real estate. The approach really is as simple as it sounds. You find sales that are “comparable” to the property in question and extrapolate a value range based on what comparable properties have sold for. But let the words of Richard Feynman, the late and great American physicist, serve as a warning to you. Feynman said, “The first principle is that you must not fool yourself, and you are the easiest person to fool.”

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NOT ALL ARE CREATED EQUAL When it comes to actually determining what is and what is not a comparable sale, we often fool ourselves. Before you can identify comparable sales, you first have to identify what the property in question really is. Once you know what the property really is, then you can accurately identify what is actually comparable.

Comparable buildings should be similar in the following areas: building size, market area, lot size, building age, and building finishes. If two buildings are comparable in many ways except for the finishes, you must have an idea of what it would cost to improve the building with older finishes so that it matches the other. If the cost to improve the building is roughly $20.00 per square foot, then factor this into the valuation.

Now comes the tricky part.

Once you have found comparable sold buildings, you have to identify the circumstances of the sale. Here are just a few of the different ways we identify the circumstances of the sale:

1) MARKET SALE: Was the property in question marketed to the local community and exposed to users, investors, brokers, developers, etc?

2) OFF-MARKET SALE: Did the sale happen without the building being taken to the market? Was the sale a quit-claim deed and/or was it a partner buying out another partner?

3) NEIGHBOR SALE: Was the buyer of the property a neighboring owner? Often, neighbors value buildings at a higher premium than other buyers.

4) ASSMEBLAGE SALE: Was the buyer of the property assembling the property as part of a larger land play?

ESTATE EXPERT

SALES COMPS

TEXT STEPHEN PRATHER AND TEE PATTERSON

5) TENANT SALE: Was the buyer of the property the existing tenant in the building?

Often Tenant buyers will pay a premium due to the value they place on occupying and using the building.

6) USER SALE: Was the buyer of the property an owner/user with plans to operate their business out of the property?

7) INVESTOR SALE: Was the property bought by a local or national investor who has plans to lease the building?

8) VACANT SALE: Was the property vacant when it was purchased?

9) IMPROVED BUILDING SALE: Was the property recently improved or renovated prior to the sale?

10) FIXER-UPPER SALE: Was the property in disrepair or in need of major improvements prior to the sale?

11) DEVELOPMENT SALE:

ABOVE SALES COMP 2350 Franklin Road: 39,450 SF Built 2003 Sale: $8,500,000 April 2008

Was the buyer of the property a developer with plans to redevelop the existing site?

12) RECENT SALE: Did the sale happen within the last 6-12 months?

13) OTHER CONSIDERATION SALE: BELOW SALES COMP 535 Murfreesboro Pike: 48,023 SF Built 1954 Sale: $2,800,000 December 2008

Was the sale under distressed conditions (past year’s taxes due, bank pressure, etc.)?

Did the sale of the property include other considerations? For example, studios are often sold with equipment included in the price of the sale.

14) DISTRESSED SALE:

As you can see from the list above, finding true comparable sales is not as simple as it looks.

Each of these sale types has an effect on the price of the comparable building and must be factored into the valuation of your property.

For this valuation method to actually be effective, the person or persons doing the valuation must know the market and know the conditions of the sale. If you simply go to the tax records and try and pull a few recent “comps,” you are going to fail at coming up with an effective valuation of the property you are trying to price.

To value anything effectively, you have to know the market, and to know the market you have to know the circumstances of the sales in your market. So, the next time someone refers to a “comp” sale, please ask them to go into a bit more detail about how and why the property in question is a comparable sale.

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DEAL SPOTLIGHT

ESTATE EXPERT

DEAL SPOTLIGHT 29 HERMITAGE AVENUE 29 Hermitage Ave is positioned in the middle of one of Nashville’s hottest redevelopment markets. Directly across from the Trolley Barn redevelopment, the Artist Apartment redevelopment and just blocks away from the new convention center, 29 Hermitage is primed to be next. Part of the new downtown code makes this location a wonderful opportunity for anything from retail to restaurant to office.

This historic brick, 2-story building has a view of the city and the Titans stadium that is rarely found anywhere around town.

LEASE RATE: $2,950 G / MONTH +/- 12,800 SF Ample Parking, 14’ Clear Height, Downtown Code For more information on 29 Hermitage Ave please contact Jonathan Douillard at jdouillard@chco.com or Elizabeth Gatlin at egatlin@chco.com.

ESTATE EXPERT

DEAL SPOTLIGHT

Investment Property Worth a Look. Wheather you are looking to lease or purchase your next property, these listings have deal written all over them.

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his quarter’s deal spotlight features a range of properties both for sale and for lease. 119 Park South Court and 159 Green Street are Industrial move-in ready spaces to relocate your business to now. 1014 16th Avenue South sits on Music Row and has

architectural charm and appeal for a mid-sized office client. 1100 Kermit Drive is more for the corporate types and is a little removed from the city. It has on site management, state of the art technology, 24 hour key card and fitness center access, ample parking, and renovated spaces

119 PARK SOUTH COURT

159 GREEN STREET

+/- 18,400 Square Feet Total Sale Price: $545,000 ($29.61/sf) Lease Rate: $2,950 g / Month for +/-12,400 SF Contact: Jonathan, Tee, or Matt

+/- 2,400 Square Feet Total Lease Rate: $1,900 g / Month Block construction built in 2005. Zoned IWD Contact: Jonathan

1014 16TH AVENUE SOUTH

1100 - 1102 KERMIT DRIVE

+/-4,096 Square Feet Total Sale Price: $850,000 ($208/sf) Two story office building on Music Row Contact: Kim or Stephen

Single Offices to 15,738 Square Foot Leases Lease Rate: $10 - $14 PSF Full Service Rate Oaks Tower and Gardens Contact: Stephen

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DEVELOPERS CORNER West Nashville is about to boom. Major contenders in the market are working to develop two large mixed-use projects. Both hope to bring more jobs and activity to the western corridors.

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id town and West End are exploding with development projects after major players in real estate announced two properties scheduled for mixed-uses in the upcoming year.

WEST END SUMMIT HCA announced its plans to become an anchor tenant for Alex Palmer’s West End Summit in late September, a 900,000sf Class A office mixed use development scheduled to start construction in early 2013. The site has been vacant since 2003 when it was

ESTATE EXPERT

DEVELOPERS CORNER

METRO GIS DEVELOPMENT TRACKER

TEXT ELIZABETH GATLIN PHOTOS VAIRED

BELOW Mixed-use hotel development across from Vanderbilt on 12th South coming soon.

originally purchased for development. The proposed towers will have an incredible impact on local real estate as they begin to tie and bridge downtown with midtown. HCA will bring an ad-

BELOW Rendering of Alex Palmer’s West End Summit.

ditional 2,000 jobs to the area which will translate into rising demand for more local housing, restaurants, and amenities.

The West End Summit complex will have a ripple effect on local businesses and property owners, many of whom are excited about how this will add value to their real estate assets.

MIXED USE HOTEL Another major project is in the pipeline for a site on 21st Avenue across from Vanderbilt. The mixed-use hotel being proposed

by Buckingham Companies will sit on nearly 2 acres of land currently being reviewed by Metro

for rezoning.

This complex would also increase density in the area with mixed amenities for visitors, students, and businesses.

LUXURY APARTMENTS: With all of these new projects going up, Ray Hensler, the same developer that completed the Adelicia condos in midtown has proposed a luxury apartment tower in the Gulch. The $80 million dollar project would help to house some of the workers moving into town.

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MAIN STREET MONEY A 3.3 acre site next to 5th and Main just sold for 1.1 million to be developed later when land prices rise in the area.

REUSE ON 3RD Possible redevelopment of the Crescent Building to become new Germantown office space.

RIVERFRONT PARK The city has proudly completed this beautiful new park.

DOWNTOWN PROJECTS You have probabaly noticed all of the construction going on in downtown Nashville. Here is a quick look at the most recent projects completed, underway and proposed.

LUXURY APARTMENT TOWER $80 million Hensler Luxury Condo project scheduled for the Gulch.

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CONVENTION CENTER ROUNDABOUT Nashvillians better learn how to drive on roundabouts soon, because the major Lafeyette/8th Avenue roundabout it almost complete.

FLOOD PLAIN REDEVLOPMENT A recent design competition focused on the PSC Metal site for possible riverfront redevelopment.

ROLLING MILL HILL The old industrial site on Hermitage has a complete office complex and will boast even more new residential in the upcoming months.

ESTATE EXPERT

DEVELOPERS CORNER

INDUSTRIAL RE-USE

PHILLIP STARK Tiur sitatur, simincte lacessin eos adi quae quam faccaturi.

The Trolley Barns at Rolling Mill Hill

BRIDGE REHAB The completion of the Nashville Bridge Company NABRICO Major features include: incorporation of sustainable design features and green building technologies including a geothermal heating and cooling system; historically responsive

replacement of building systems; construction of a Metro Parks staff office, public rest rooms, a concession stand, and pursuit of LEED Core & Shell Platinum Certification.

NY TIMES ARTICLE: Activity is humming again at Rolling Mill Hill.

The six red-brick trolley barns, which trace their history to the Works Progress Administration, have recently been rehabilitated by the Mathews Company, a local developer, into office and retail spaces with high ceilings of exposed wood and bowed steel trusses.

The barns’ 80,000

square feet will soon be brimming with young professionals.

The offices of Emma, an e-mail marketing agency; the local en-

trepreneur center; and a lengthy list of other start-up companies have signed leases there and are in the process of moving in.

INFILL GULCH OFFICES UP TO 200,000 SF of office space has been proposed for development in the Gulch, called the Gulch Crossing Building on Demonbreun.

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TO OWN OR TO LEASE The Road to Property Ownership is Full of Complex Decisions. When Does Owning Really Make Sense?

ESTATE EXPERT

LEASE VS. OWN TEXT VAIOUS SOURCES - CHCO PHOTOS VARIED

LEFT Hosse and Hosse Safe & Lock Co. on Deadrick Street. 7th Oldest business in Nashville.

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OWN VS. LEASE NASHVILLE’S current economic climate is prompting many business owners to examine the option of property ownership.

Interest rates are the lowest they have been in years and many are looking for ways to take advantage of the rates before the economy starts to improve.

Deciding whether to purchase or lease property can be very challenging; there are many interrelated factors aside from the obvious financial considerations that should be analyzed carefully.

Unfortunately, there is no simple answer to the question of lease vs. own. Space costs represent significant business expenses, but making a prudent decision goes far beyond short-term financial considerations. It is a broad process that should include a careful examination of the following factors:

• • BELOW Hosse and Hosse today on Woodland Street. Same key sign representing 145 years of business.

• •

Merits of Owning and Leasing Company Structure / Goals and Objectives Operating Space Requirements Market Conditions Financial Analysis

It is important that a company understands the basic factors that

contrast ownership and leasing.

O

wning

ADVANTAGES:

No exposure to market rent increases.

Property appreciation. Rental income from tenants. Financial leverage (equity, mortgage loans, etc). Tax benefits (favorable

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LEASE VS. OWN

ESTATE EXPERT

capital gains treatment, depreciation, interest). Control over image.

Promotes an image of strength and stability. Stability of location.

Ability to control operating expenses and maintenance. Control over other tenants and uses in the building.

ABOVE Much of the downtown space has already been purchased making it only available for lease.

DISADVANTAGES: Cash outlay includes down payment, closing costs, various fees.

Possibility of property value depreciation. Obsolescence. Must concentrate on property management as well as core business.

Capitalization rate volatility.

Space or equipment intensive or specialized users may be too expensive to ever move. Nonliquid asset. Reduced flexibility to expand/contract. Uses up borrowing capacity. Increases balance

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RIGHT When you own real estate you risk having your investment change with the market at the time.

sheet debt.

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easing

ADVANTAGES: Initial cash outlay tends to be lower than owning.

Rental payments are 100% tax deductible. Less capital commitment can channel financial resources into operations. Less debt on balance sheet. Stability of cash flow. Stability of costs.

Remove ownership risks (obso-

ESTATE EXPERT

LEASE VS. OWN

Sometimes in commercial real estate it is hard to know what you can really afford. The loan process is complex and there can be great risks.

RIGHT Real estate portfolios take time to aquire and manage.

lescence, loss on disposition, cap rate vitality). Maintain operating flexibilty (size and location). Focus on core business rather than property management. Possible option to own at the end of the lease. Landlord responsible for property management and most maintenance items.

BELOW Major chains usually lease in downtown areas.

DISADVANTAGES: Renting can cost more than owning . No tax savings from depreciation or interest. Less control of asset – tenants have less input on the image and appearance of buildings. No benefit from value appreciation and equity buildup.

Rental rate increases. Less control over operating expenses

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EVENTS CALENDAR

ESTATE EXPERT

ART CRAWL 1st Saturday Art Crawl 6-10pm DOWNTOWN ART CRAWL Mark your calendar for the first Saturday of every month when art galleries throughout downtown host receptions and art openings! Over 1,000

people attend this very popular monthly event. Presenting local and world-renowned artists and artwork, the galleries offer rare opportunities to view diverse exhibitions featuring every genre

of art. Admission free, welcoming the community to experience Downtown Nashville as a hub for art.

Most galleries serve free wine and other refreshments. 6-10pm

OPRYLAND LIGHTS Gaylord Opryland’s ”A Country Christmas” begins November 16th NOVEMBER 16TH JANUARY 1ST

FULL MOON PICKIN PARTY MUSIC MAY OCTOBER Friends of Warner Parks presents the 11th season of Full Moon Pickin’

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Parties. These familyfriendly fundraisers feature Middle Tennessee’s finest bluegrass music un-

der the light of a full moon. Pickers form performing circles while headliners are featured on stage.

Don’t wait a moment longer to plan your next spectacular visit to Gaylord Opryland Resort. With more than two million twinkling lights, horse-drawn carriage rides, acres of stunning decorations, and exclusive holiday events and attrac-

tions for you and your entire family, Gaylord Opryland offers some of the most distinctive holiday entertainment you can imagine.

Discover all the ways Gaylord Opryland is like no other holiday destination and come make memories!

ESTATE EXPERT

TERRIBLE TENANTS SOLVED

tenant ever steps into the space.

CHCO TEAM

How to handle the worst Tenants in real estate while protecting you investment.

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e have all heard horror stories of tenants moving into a property whether it be commercial or residential and completely trashing the place, leaving the landlord stuck with the bill. Dealing with uncooperative tenants is one of the biggest downsides to purchasing and leasing because these tenants take so much time and energy for little to no payoff.

So what do you do to save yourself from these headaches and your property from destruction?

PROPERTY MANAGERS Property managers can be a life saver for handling conflict and mitigating issues that arrise from terrible tenants. With the right experience and tact professional property managers have the experience and know how to see problems coming from a mile away. They are also better equiped to fix issues that arise because they have built a relationship with both the landlord and tenant. The value that a property manager can add to your real estate investment begins before a

TERRIBLE TENANTS

BELOW Charles Hawkings Company manages over 6,000,000 sf of space.

At the Charles Hawkins Company our brokers work with our property management team to offer exceptional service to landlords looking to protect and grow their real estate assets. The CHCO property management team works on a range of real estate portfolios and has experience dealing with all types of tenants; the good, the bad and the ugly. Give us a call to see how our property managers might be of service today

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FEATURED SERVICES

ESTATE EXPERT

LEFT Whether you move or redesign your real estate. Either way you want a plan that works.

FEATURED SERVICES Space planning before you move. Do it right the first time. Let us help you evaluate how much space you really need.

Y

ou know your business is growing but it is hard to predict where you will be in 6 months. Some days seem lighting fast and you consider doubling your square feet while at other times business seems to slow down and you think you might be able to tough it out and stay put where you are for another year or so. When your lease contract ends next April how are you going to decide what to look for today?

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PLAN FOR SUCCESS One of the best things you could do for your changing company is let us evaluate your current needs and space while we learn more about your business plan and goals. As commercial real estate experts we work day in and out with businesses in transition, some growing and some scaling back. Taking a hard look at what you have is a critical first step in the leasing and purchasing process.

EVALUATE YOUR OPTIONS Once we know more about your business and where you stand with your current space we can provide you with realistic options that will work for many different scenarios. Then when the time comes to take action you have a detailed plan, an advocate in the market, and are assured your space will continue to perform for optimum business success

BELOW Detailed and measured floorplan with existing office space conditions.

ESTATE EXPERT

FRESH INSPIRATION

OFFICE REHAB Rejuvinate yor business with an easy office makeover.

GET ORGANIZED Does your office space need a make over?

Years of clutter weighting you down?

5 STEPS TO A CLEAN OFFICE Before getting my real estate license I would offer space planning services to help businesses get organized using the space and

systems they already had. Here are my must do tips for an organized office: 1. Sort loose items into piles first to be put away later.

2. When in doubt

GET OUT OF A RUT How long have you been sitting in the same space? 6 months? A Year? More than 3? You probably do a wonderful job... the same way day in and day out.

Change can be hard, but sometimes a little innovation is necessary to take your business to the next level. One of the

simplest ways to get inspired is to change your space. Move your desk, redecorate, and go through old files. The trip down memory lane mixed with having to figure out where to put everything will translate into a creative spark rejuvenating your work days and your career. You will be amazed.

throw it out.

3. Batch scan documents and business cards once a week.

4. Remove at least 3 large items from your work space.

5. Repeat often.

FILES REMOVE CLUTTER - Stay organized with these white wall mounted files from Crate and Barrel only $25.00

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REAL ESTATE TEAM

ESTATE EXPERT

MEET

YOUR ESTATE EXPERTS Commercial Real Estate Professionals since 1962 Chas. Hawkins Co., Inc. / CORFAC International

S

ince 1962, the Chas. Hawkins Co., Inc. has provided stable, reliable and outstanding real estate services to the Nashville community.

Our current business statistics include: • •

• We are a dynamic, energetic, forward focused & skilled group of real estate professionals with a significant presence in the Middle Tennessee commercial real estate markets.

Phone: 615-256-3189 776 Melrose Avenue Nashville, TN 37211

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• •

Leases with over 500 customers Annual transaction volume in excess of $100,000,000.00 Manage over 8,000,000 square feet of space Over 45 build to suit projects completed Over 34 speculative projects completed

Call or visit us today to learn more about how we can help you with your real estate needs.

ESTATE EXPERT

REAL ESTATE TEAM

ELIZABETH GATLIN MORE ABOUT ELIZABETH Elizabeth Gatlin is an architecture and property investment specialist focused on metro Nashville real estate. She works with clients interested in owning, selling, or leasing real estate along the primary corridors leading into the downtown Nashville area.

Elizabeth is a born and raised Nashvillian graduating from Hume Fogg Academic Magnet. She holds an Honors Bachelor’s degree in Architecture from the University of Tennessee, Knoxville and has been involved with both public and private initiatives that develop Nashville as a quality place to live and work. Her experience with companies and leaders developing the Middle Tennessee region gives her insight into the best deals in town. She lives with her husband in East Nashville’s Lockeland Springs neighborhood.

CONTACT HER TODAY:

Office: 615-345-7217 Cell: 615-429-3382 Email: egatlin@chco.com Chas. Hawkins Co., Inc. / CORFAC International 776 Melrose Avenue Nashville, TN 37211

JONATHAN DOUILLARD

KIM CAMP

STEPHEN PRATHER

TEE PATTERSON

Email: jdouillard@chco.com Call: 615-345-7233

Email: kcamp@chco.com Call: 615-345-7226

Email: sprather@chco.com Call: 615-345-7229

Email: tpatterson@chco.com Call: 615-345-7229

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in this publication, please contact Elizabeth directly at egatlin@chco.com. To see all of CHCO’s real estate listings and to learn more about the company go to www.chashawkins.com