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Tag: leases

  • Bank of America shifting workers out of two uptown offices in latest consolidation move

    Bank of America shifting workers out of two uptown offices in latest consolidation move

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    Bank of America is relocating employees from two uptown buildings to other nearby locations in Charlotte where work groups will be consolidated so they can better work together, a spokesman confirmed Wednesday.

    Leases for the Charlotte-based bank are expiring at both locations, according to the bank.

    The first change is coming in September at 901 W. Trade St., where the bank occupies a 242,820-square-foot office space, according to the Charlotte Business Journal, which first reported the news. Bank of America’s other lease of 316,751 square feet at the Fifth Third Center is expiring in July 2025, according to the financial institution.

    Bank of America would not disclose the total number of employees that will be impacted by the changes.

    The bank will continue to have a corporate presence at several uptown spaces, the spokesman said.

    After the leases expires, employees will be sent to those locations. This includes 1 Bank of America Center, 150 N. College St.; 401 N. Tryon St.; Bank of America Tower at Legacy Union, 620 S. Tryon St.; and Gateway Village, 800 W. Trade St.

    Changes are not being made at the corporate headquarters building at 100 N. Tryon St.

    Bank of America is relocating employees from two uptown buildings to other nearby locations in Charlotte The Bank of America Corporate Center, seen here, is not impacted by the moves.
    Bank of America is relocating employees from two uptown buildings to other nearby locations in Charlotte The Bank of America Corporate Center, seen here, is not impacted by the moves. Jeff Siner

    Cousins Properties, landlord for Fifth Third Center, is planning to make amenity changes after the bank leaves, CBJ reported. Foundry Commercial leases the office property.

    No jobs are being cut because of the moves, according to the bank.

    More than 19,000 people are employed in the Charlotte region, part of 213,000 workers across its company. As of June, it had $2.4 trillion in assets, and was the second-largest bank in the United States.

    Other big bank worker consolidation moves

    Bank of America is not the only big bank in the city that’s consolidating workers.

    Early last year, Wells Fargo announced it was consolidating its uptown office space and moving most of its workers out of One and Two Wells Fargo Center and into two other office towers. One of the of the buildings it was leaving behind had served as an East Coast hub for the bank and its predecessor for nearly four decades.

    The San Francisco-based bank has its largest employment hub in Charlotte, with more than 27,000 workers in the area.

    This story was originally published May 29, 2024, 5:03 PM.

    Related stories from Charlotte Observer

    Chase Jordan is a business reporter for The Charlotte Observer, and has nearly a decade of experience covering news in North Carolina. Prior to joining the Observer, he was a growth and development reporter for the Wilmington StarNews. The Kansas City native is a graduate of Bethune-Cookman University.

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  • What to Know When Leasing a New or Existing Space | Entrepreneur

    What to Know When Leasing a New or Existing Space | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When leasing commercial space, a tenant can either rent in a new development or lease an existing space.

    Understanding the plusses and minuses of leasing new space compared to an existing space is critical. There are an incredible amount of nuances involved in both options. This article will help you examine both sides of the equation to assist you in making an informed decision.

    Infrastructure improvements

    Key benefits businesses can enjoy when leasing space in a new development are a few potential infrastructure improvements from landlords. These can include electrical & HVAC.

    Many developers are building spaces with higher electrical requirements than what was traditionally built in the past. Since upgrading the existing electrical infrastructure can often be impossible or extremely expensive, having the amperage you need from the beginning will be highly advantageous to select a location.

    After electrical requirements, HVAC is another big-ticket item. In a new development, the landlord may have installed a new HVAC. However, there is also a chance that the landlord will not install it. Whether the development is new or existing, you need to ask and get in writing if the landlord will handle the HVAC. You will need to know this before you start to negotiate your deal.

    Also, you must determine the HVAC size and confirm with your general contractor that it will work for your business. Remember to mention to your general contractor any equipment you will be utilizing and ask your general contractor to confirm the HVAC tonnage will be sufficient for your needs.

    If new HVAC is going to be installed by the landlord, find out if they will be distributing it or not. If they will not be distributing the HVAC, make sure to let your general contractor know and have the g include the cost to distribute in their quote. If there is existing HVAC, find out the age and have it inspected in the early stage of negotiations. If the HVAC needs to be replaced, you must find out sooner rather than later.

    Related: The 10-Step Process to Leasing a Commercial Space

    Tenant improvement allowance

    A tenant improvement allowance is money a landlord gives a tenant specifically for the tenant to utilize in building out their space. New developments often offer tenants a higher tenant improvement allowance than an existing space. However, it is essential to note that although the tenant improvement allowance is higher, landlords typically will not build a restroom in the new space. Instead, landlords commonly feel that the tenant can add the bathroom to their plans.

    Landlords typically expect tenants to take part of the money they give as tenant improvement allowance for the restroom build-out. Therefore, it is a good idea to talk to a general contractor and get a bid on what it will cost to build your restroom. Then you can provide the landlord with that number and try to negotiate restroom credit. Also, remember that it is essential to check with the city to determine the number of restrooms you will need for your use.

    Higher leasing costs

    One of the main disadvantages of leasing retail or commercial space in a new development is that it can be more expensive. New developments often have higher leasing costs due to the current construction costs. In the Southern California commercial real estate market where I specialize, I have seen examples of rents being double for a new development versus an existing center. In addition to higher leasing costs, tenants often must pay utility connection fees when leasing a new development.

    If the space already exists, it is likely connected to utilities, and thus the tenant would avoid those fees. However, it is essential to note that every use differs, and every municipality charges different connection fees. Therefore, do your homework in advance, talk to your potential landlord, and then speak to the municipality where you plan to open your business. It will help if you find out what your fees will be in advance. This way, you will have no surprises.

    Related: 5 Most Common Red Flags Entrepreneurs Should Know Before Signing a Commercial Real Estate Lease in New York

    Signage

    Signage is vital to most businesses — it will get customers to your door. Since signage is highly sought after by all tenants, it can be highly competitive to get. Landlords will traditionally not offer it to tenants. Tenants need to work hard to get signage rights with their space. Typically you can easily get the right to put your name above your space. You must negotiate to get your business name on other building locations, such as the back and the side. Additionally, you must negotiate your rights to be on any pylon and monument signs in the shopping center or business complex.

    Remember that there are almost always limited spaces on monuments and pylon signs. All tenants in the center are probably not going to get panels. When negotiating your deal, you will need to ask for space. Remember to get the exact location of the panel location in your lease. It will need to be added as an exhibit.

    Even if a landlord says you can have signage rights, you have no rights if it is not in your lease. At any time, the landlord can force you to remove your sign.

    Additionally, it is good to note that in an existing center, a tenant will typically have to pay for the cost and installation of their panel. However, in a new center, in addition to the cost and installation of their panels, landlords often try to pass on the cost of the construction of the monument sign to tenants. If you have seen a monument sign in a center with many blank panels, the landlord could have tried to get the tenants to pay for spaces, but the cost was probably prohibitive.

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    Roxanne Klein

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  • Entrepreneur | 10 Steps to Leasing a Commercial Space

    Entrepreneur | 10 Steps to Leasing a Commercial Space

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    Opinions expressed by Entrepreneur contributors are their own.

    If you are new to commercial leasing and will be leasing a commercial space for the first time, here’s an overview of the commercial leasing process.

    1. Find a location

    Determine the demographic you want to reach and find an area that caters to that demographic. You will then want to research the market by considering the competition in the area and how your business will differentiate itself.

    In analyzing your potential locations, you need to look at costs: I recommend creating a spreadsheet where you put all your costs associated with each place you are considering. You can now make a side-by-side comparison of different sites with a cost spreadsheet.

    Related: How Your Business Can Be Its Own Landlord

    2. Tour with your general commercial contractor

    Once you have visited all locations and analyzed the costs, you will tour the locations with your general commercial contractor. You will want your general contractor to assess the condition of the walls, floors, roof and foundation to ensure they are in good shape. In addition, check the availability and condition of electrical, plumbing and HVAC systems to ensure they are adequate for the intended use. Finally, if you need gas, you will want to ensure that gas is currently at the premises.

    Make sure you have your general contractor evaluate the accessibility of the space. Ask your general contractor whether the property meets American With Disabilities (ADA) requirements.

    After you tour with your general contractor, if you want to submit an offer, ask your general contractor to provide you with a quote. This quote will allow you to evaluate the cost of any necessary repairs or renovations.

    Related: How to Start an Airbnb Business Without Owning Property

    3. Draft and submit a lease offer

    If you are working with a real estate broker, they will be able to assist you in drafting your lease offer. You will want to ask your real estate broker for comps before you let them know the lease rate you want to offer. Remember, when reviewing comps, you need to know the big picture. Landlords often give tenants a cash allowance and free rent to get a higher rent.

    After reviewing comps, determine your budget. Decide how much you will pay for rent, security deposit and other fees. Also, decide on the length of the lease you are comfortable with. At this time, you or your real estate broker are in a better position to prepare a letter of intent, often referred to as a LOI. Your LOI should outline your proposed terms, including the length of the lease, rent amount, security deposit and other relevant details.

    4. Wait for a response

    This part is the hardest for many of my clients since once the ball is out of our court, it can be challenging to know when it will come back in. If you seem too anxious, it will affect your ability to negotiate.

    5. Review and negotiate

    Once you receive the response from the landlord, you will either continue your negotiations or move on to another property. Please note that it is scarce for a landlord to accept an original offer from a tenant. Therefore, if you continue the negotiation process, you will engage in further negotiations until you reach a mutually acceptable agreement. This process can be as quick as a few weeks, but complex deals can last over a year.

    Related: Cultivate Your Negotiation Skills For Entrepreneurial Success

    6. Lease draft

    If you agree with the landlord on the LOI, you will wait for the lease draft to review. I recommend you interview and decide on a commercial real estate attorney skilled in lease review and tenant representation during this time.

    7. Attorney lease review

    Once you receive the lease draft, send the lease along with the agreed-upon LOI for your attorney to review. Additionally, it is essential that you carefully read the lease agreement to ensure you understand the terms and conditions. You, along with your attorney, will want to verify the terms. Make sure that the lease agreement accurately reflects the terms that were negotiated.

    Related: 8 Essential Real Estate Questions To Ask Potential Franchisors

    8. Final inspection

    Before you sign the lease, I recommend you do a final inspection. Typically the general contractor will do an initial review at no cost before this point. To get an in-depth inspection, they will require a fee. Considering the financial costs involved in the lease, it is a good business practice to pay for this final inspection.

    9. Execute the lease

    After you are comfortable with the lease and the final inspection, you will then be executing the lease. It is important to note that typically your time will start ticking when the lease is mutually executed. This time is most importantly specific to the free rent period.

    Related: Why Real Estate Agents Should Take Advantage of BPOs Right Now

    10. Hire an architect, if applicable

    You may need to hire an architect to draw plans if you make significant modifications. If the landlord has existing plans, it will save you money and time. I recommend you ask for these plans during your LOI negotiations.

    If you need to have plans drawn, your architect will submit them to the city once they are complete. Each municipality has different speeds at they operate. You need to understand that you can only start your build-out once the plans are approved.

    The process of leasing commercial real estate can be complicated and time-consuming. Therefore, I recommend you work with a commercial real estate broker, a general commercial contractor and a commercial real estate attorney to assist you in your journey.

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    Roxanne Klein

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