Solutions Newsletter
August 2016
From the Desk of Bruce Bossow

Not All Brokers Are Created Equal
How you can make an Intelligent Choice
There's a tendency for the uninformed and uninitiated to adopt a mindset that all real estate brokers are "cut of the same mold." In fact, there are substantial differences among individuals and firms. This article will attempt to help you chose when it comes time to solicit help from professionals, whether buying, selling or leasing commercial real estate.
It is quite normal for most brokers to think they have the best platform to service your particular requirements. In the recesses of our own minds, brokers rationalize that the customer or potential client would be making a big mistake to choose a competitor. That's the ego in us brokers. Not all people with big egos are real estate brokers, but most real estate brokers have bigger than average egos. They need to because of all the rejection faced in the sales game. Whenever someone chooses a competitor (ok, I'll admit it. . . I have a few competitors!) over me and my firm, my ego goes thru this rationalization process that hardens my psyche and allows me to keep looking for the next property owner to whom I can be of service. This mental process is why most people reject the life of a commission salesperson. It's lonely, unpredictable, sometimes painful, but I wouldn't be in it for 45 years if the positive didn't outweigh the negatives. But I digress . . .
Here's my top nine knock-out list of qualities and qualifications that you can use to select a commercial real estate broker next time you are in the market for one of us:
Featured Properties
2nd Generation Restaurant
10004 N. Main (Route 12), Richmond, IL
76 seat, 2,880 SF restaurant on heavily trafficked Route 12. Currently closed. Comes with all equipment.
Sale: $483,000 ($69 psf)
Lease: $3,200/mo. Modified Gross
Duplex Office - Fantastic Price!
5 S. Virginia Road, Crystal Lake, IL
7,700 SF 2-story 2-unit office building with attached garage and partially finished basement. Price slashed!
Sale:  $549,000 ($76.22 psf)
Lease: $8.79 psf Gross
FOR SALE - Just Listed!
Industrial Income Property
561 Jennings Drive, Lake in the Hills, IL
Investment property. 3-unit 6,492 SF steel industrial building built in 1994. 14' ceilings. 100% leased! Call for operating statement and rent roll. 
Sale: $440,000 ($67.78 psf)
Industrial Flex - Bank Owned
6217 Factory Road, Crystal Lake, IL
5,000 SF freestanding bank owned. 2,870 SF (Office) / 2,130 SF (Warehouse). Great buy. Needs some TLC.
Sale: $269,000 ($53.80 psf)
13,230 SF Commercial Space
10514 Route 47, Huntley, IL
Great exposure! B3 zoning offers a variety of uses. Space has 2,400 SF Retail / 4,800 SF showroom and 6,000 SF warehouse!
Lease: $10. PSF NNN
Recently Sold and Pending
189 S. Main, Crystal Lake, IL
5,000 SF automotive showroom w/lift.
Sold for $400,000
Heather Schweitzer represented the seller 
Bruce Kaplan represented the buyer.
8550 Ridgefield Road, Crystal Lake, IL
26,400 SF Industrial Space
Bruce Kaplan represented Lessee and Lessor
164 Dundee Avenue, Elgin, IL
7 bay, 5,000 SF automotive repair building.
Sold for $500,000
Bruce Kaplan and Michael Williamson, CCIM represented the Seller
1309 North Avenue, Crystal Lake, IL
Neighborhood Convenience Store
748 Tek Drive, Crystal Lake, IL
11,685 SF Industrial Flex Building
SBA Touts Lowest Rate in 20 Years!!!
by Bruce Kaplan, Premier Commercial Realty

The golden goose for commercial real estate brokers and buyers has been the SBA (Small Business Administration).

Two major programs, the 504 and 7-A are facilitating a lot of business for our industry. A wide range of buyers can qualify for these loans, they can be processed relatively quickly (45-60 days is common) and must require only a 10% down payment.

In August, the effective  20 year fixed 504 loan dropped as low as 3.88% !! What's even more interesting is, these loans can be used to re-finance your existing conventional loan. Now the SBA will finance leasehold improvements for a tenant moving into a leased space.

Call us for guidance on how to plug into an SBA specialist.

By: Quantum Real Estate Advisors, Inc.

Nationally, the shopping center market in the second quarter got off to a relatively slow start. Second quarter shopping center investment sales volume totaled $17.7 billion which is a 22.3% decrease from the second quarter of 2015. This was mainly caused by record low cap rates and very high asking rents. Though grocery anchored investment was down nearly 20% compared to the previous quarter, it continues to be in the highest demand. Competition with online retailers is one of the biggest headwinds that the retail industry faces today, losing an estimated 16% of sales to the online industry in the first quarter alone. Shopping center investment sales volume increased in the second quarter and is expected to do the same to close out this fiscal year.
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Chicago-area property sales rising even after record year
By Ryan Ori, Crain's Chicago Business

After setting a record last year for commercial real estate sales volume, the Chicago area isn't slowing down in 2016.
Through the first third of this year, area properties had sold for a combined $6.29 billion, a 7 percent increase over the first four months of 2015, according to Real Capital Analytics. The Chicago area set a full-year record for sales volume last year, at $22.64 billion, according to the New York-based research firm.
The increased sales volume is surprising not only because it follows a record year but also because there has been an overall national slowdown in the early going this year. U.S. volume was down 18 percent through April.


Premier Commercial Realty
 industrial  | retail  | office | land 
business  | investment

 9225 S. IL Route 31 | Lake in the Hills, IL 60156

Bruce Bossow, x 12 847-732-3462
Bruce Kaplan, x 20  847-507-1759
Heather Schweitzer, x 15  815-236-9816
Heide Casciaro, x 26 847-774-5660
Joe Billitteri, x 21  847-833-5004
Joe Heffernan, x 18  847-302-5550
Tina Kropke, CCIM, x 14  815-970-0546
Michael Williamson, CCIM, x 25  847-732-0504
Kevin Kaplan, x 13  309-261-0920