What is a Business Condo?
A Business Condo is a suite or unit located in a business or industrial park. Business Condo owners run their business from these locations. The term "Condo" implies ownership of the property similar to residential condos. There are Association fees as well as rules and regulations for signage, business usage and parking. Condos can be individual or multiple units, depending on how much space is needed.
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What's is Flex Space?
Flex space is a term used to classify commercial space that can be a combination of office, warehouse, industrial and or showroom usage. Flexspace allows for more flexibility with usage on the property. Depending on zoning and parking flexspace can accommodate a wide variety of business types.
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What is Industrial Space?
Industrial space is property zoned for industrial usage. Typical industrial space has high ceilings, roll-up doors, truck wells or docks for loading and a smaller office build out. The most common feature in industrial zoned properties are warehouse space. Outside storage yards are found in industrial spaces and often are a rare commodity. <back to top>
How do I purchase a Business Condo?
Purchasing a Business Condo is very similar to purchasing a residential condo. You will want to work with a broker who will look out for your best interests and negotiate terms in your favor. Typically a purchase price offer is sent to the owners agent. Earnest deposit money is mandatory. You will have a due diligence period that will allow you to investigate the property. Your escrow period and closing dates are scheduled accordingly. The transaction is overseen and managed through a third party escrow or title company. At closing you will be given title to your property. <back to top>
What are the advantages to owning a Business Condo?
Tax advantages, property appreciation and pride of ownership are just a few. Ownership lets you control your payments and gives you freedom to make decision without having to consult with a landlord. Being a tenant can sometimes constrain expanding or growing your business. If you are a tenant any improvement or modifications to your business condo need to be approved by your landlord. Those improvements may also stay behind and become ownership of the landlord if you decide to relocate. <back to top>
What type of zoning do I need?
Every city has its own zoning ordinances that specify what type of business can be operated out of a particular location. Many cities have online references to zoning ordinances. It is good idea consult with a broker and have them investigate zonining ordinances. Ultimately you would want to check with the city to clarify what can and can not be done at a location. <back to top>
How many parking space do I get?
Every business park has its own parking allowance. You will want to check with the property representative and clarify the parking ratio for a particular location. Typically brokers will talk in terms of parking spaces per one thousand square foot. (ie. 3:1,000 means three parking spaces per one thousand square feet) <back to top>
Can I sublease space in my Business Condo?
Unless stated otherwise in the Association Docs and with consideration to zoning ordinances you can sublease space at your business condo. It would be a a good idea to work with a broker to write a sublease contract to protect your property interests. <back to top>
What are tenant improvements?
Tenant improvements are interior modifications made to an existing space. Remodeling, building out office space, installing restrooms are just a few. Depending on your ideas to improve your interior space tenant improvements can be a short or lengthy process. Modifications will most likely need approval from the city and be performed by licensed contractors. <back to top>
What is the process for doing tenant improvements?
The first step would be to consult with an architect and general contractor to get an idea of space planning and costs. Next, your architectural plans will need to be submitted and approved by the city planning division in order to get permits for the construction. Inspections will be scheduled to make sure that the construction is up-to-code. Once you have all inspection approvals you will be given certificate of occupancy and be ready to open for business. <back to top>
How long do tenant improvements take?
There are several factors that will determine how long your improvements will take. Starting from the beginning of the process, your architect will need time to draw plans. Plan submittal and approval to the city can go back and forth several times depending on the complexity of your plans and any changes needed. The contractors time frame to complete will depend on their own scheduling. Final inspections make require further modifications also. There is no standard time frame or rule-of-thumb to go by and depending on the size and complexity the improvements could take several months to complete.
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Can I use any contractor for my TI's?
In most cases you will have the option to chose any contractor that matches your needs. It is common that certain work needs to be performed by a particular contractor for insurance purposes. Roofing contractors fall into that category most often. <back to top>
What if I want to do the TI work myself?
Certain tenant improvements need to be performed by licensed contractors. There is no way around that unless you happen to have a license specific for that work. Other improvements can be done with out a license and it is common that owners will put their own "sweat equity" into their business. Painting, tile work, decorative work are just a a few examples. <back to top>
Where do I get signage for my space?
Sign vendors are most commonly used for creating and mounting signage. Sign vendors will work with the given signage parameters found in the Association Docs and submit artwork for approval to both the city and business park management. All signage fees are paid by the business owner. <back to top>
What are Condo Association Fees?
Condo Association fees are also known as C.A.M. fees (Common Area Maintenance.) CAM fees include landscaping and cleaning services for the property, common area lighting, garbage collection, and property management fees. Condo Association fees are tabulated from an annual budget that is divided and billed equally to all business condo owners of a particular business park. The budget is created, modified and reported annually to all owners so that they are aware of the allowances being paid.
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