Andrea Kaderlik, Author at APPRO Development & CERRON Properties

How to sell commercial real estate

Thinking of selling your commercial property without a survey and title work? You may want to reconsider. Many of my commercial real estate deals in 2016, ended up having an unforeseen issue related to the title or the results of the survey of the property. Many of these issues could be resolved at the time of listing the property, rather than after a deal has been put together. By having these essential steps complete prior to listing the property, a whole lot of time and energy could be saved – not to mention alleviate potential headaches for both buyers and sellers.

So, what is involved in obtaining title work on a commercial property?

It starts by working with a reputable title insurance company. Our brokerage has been fortunate to work with a variety of very good title insurance professionals over the years, and certainly would be happy to recommend a few. By requesting a title commitment before, or at the very least, at the time of listing, issues like liens, covenants, easements, restrictions, and more, can be identified and rectified as required. Examples of title reporting may include: Errors in the recording process; or paid-in-full mortgages may appear as a lien on the property awaiting a recorded satisfaction. It is not uncommon for individuals who came into ownership (e.g. estate) may not know “what” they are selling, and therefore may not be aware of many of the possible issues on the property – a title report can help to shed some light. As of the writing of this post, ordering title work from a commercial title insurance company can run $600.00-$750.00. This is one step that can significantly aid in streamlining the sale of a property.

Obtaining a survey is similar in terms of working with a reputable provider.

By obtaining a survey — and ideally on a commercial property, an ALTA (American Land Title Association) survey — you will better understand the parcel being sold. In the past few years of our commercial real estate deals, a survey has been able to catch an encroachment of a fence on an adjacent property onto the property being sold. Another example is of a property that was eventually held by a bankruptcy trustee and multiple areas of encroachment were found upon a full survey being conducted. As of the writing of this post, an ALTA survey will typically run between $3,000 and $4,000, and take several weeks to complete.

Our team hears comments all the time including: “I have always owned this property, I really don’t need to obtain title work,” or, “An ALTA survey is really expensive, can’t I just get a boundary survey?”, or similar comments. Unfortunately, we see what happens when these essential reports are not completed and investigated in advance. At a minimum, when issues are identified, they add time to the deal, or worse still, deals can fall apart altogether.

By taking a proactive approach, much time can be saved down the road, and your goal of selling your property will come to fruition. Talk to our team about questions you have while considering your “to do” list to list your property or when you are thinking about how to sell commercial real estate. We are happy to help wherever we can.

Additional Articles/Links of Possible Interest when you want to know how to sell commercial real estate:

Difference between a boundary survey and an ALTA survey
Definition of an ALTA Survey
Title Insurance Fee Calculator
How to Make a Good First Impression when Selling or Leasing Commercial Real Estate

How to Solve Office Warehouse Space Planning Dilemmas

Have you found yourself contemplating how much office space you truly need? Or, maybe you are curious about trends in office design. The APPRO & CERRON team has compiled some helpful resources to assist you through your next office space planning project. In Part One of this two part series, we focus on the Office Planning portion of these spaces.

In this article, you will learn:

Identification of Space Planning Dilemmas
Solutions
Getting Creative
Resources Available

Space Planning Dilemmas

So, let’s first start with what is keeping you up at night. Are your team members crowding into offices or cubicles, and you find yourself scratching your head, trying to figure out where you are going to locate your next new hire? Or, are you on the reverse side of that dilemma – finding yourself with excess office space: private offices that go unused, or cubicles that collect cobwebs? Do you have some traditional office space in your building – private offices around the perimeter, with shared cubicles in the center and are considering a different design configuration? Have you been checking out the “cool office” design pages (e.g. Mpls./St. Paul Business Journal – Cool Offices Page) and wondering if it might be time to address your office space that was designed decades ago?

Solutions

Trends come and go in design – it is what can make it all so exciting! Yet, there are some tried and true aspects to space planning which transcend current trends. So, let’s start there, and then move onto trends you can incorporate, once your important space planning goals have been established.

The first consideration is the minimum amount of space needed for your staff. The following link to a space calculator gives an idea of approximate SF needed per person, per role, in a typical office. You will also need to consider space for common areas like breakrooms, restrooms, and work or file rooms, and meeting spaces like conference rooms. The space calculator is simply a starting point, and selecting an architectural design team, early in the process is an important next step.

According to a recent article published on LinkedIn, “Adding the architect to your leasing team early in the leasing process to develop reliable space requirements (before you begin looking at potential lease spaces) can make all the difference in leasing the proper size and type facility for your company” as stated by J. Edgar “Ned” Fennie Jr., in an article titled, “Office Planning Guidelines: How much space should we really be looking for?” Fennie goes on to state, “Make sure your selected architect understands your culture, business goals and workflow and has the expertise to guide you through the programming process. This will ensure you have an accurate heads-up picture of your space requirements.”

Calculator Image Designed by Freepik

Additional considerations include site, layout, amenities, and much more. Having a checklist of considerations can be very helpful during the planning process, and can help tremendously during conversations with your design team. Download this free office space planning checklist to learn more.

Once you have worked out the type of space you need and have set your basic goals and parameters for the space you desire, you may want to also factor in some additional considerations, including design trends, previously mentioned.

Get creative

If you are not ready to commit to a long term lease, you may want to consider leasing a short(er) term lease space (e.g. – Apple Valley Executive Suites).

With more staff working from home, could you make use of shared space?

Shared space vs. private space – more companies are using large collaborative spaces and at the same time, carving out small private meeting spaces.

Check out Forbes magazine, “10 Cool Office Spaces” article for examples of changing spaces and a few fun additions to the office environment. On a similar note, a couple of us from our office recently attended a Valuations seminar by the Minnesota Real Estate Journal, and learned that some offices are installing fun features like ping pong tables and one location, even had a “keg-erator” installed.

Office Space Planning Examples

Check out some of our recent office projects for ideas:

Grazzini (completed project)
Hearth & Home (completed project)
Midstates (portion complete; ongoing work)
Growing Colors by Gardenworld (ongoing current project)

Next Steps…

When you have decided how much space you might need, or that you require some assistance in making that determination for your team, contact our design team or our real estate team to start a conversation about your space needs. You may reach our team members at the following:

5 Signs You Should Locate Your Business in Airlake Industrial Park

If you are currently seeking an industrial site to land your office warehouse, office manufacturing, or office distrubution facility, the Airlake Industrial Park may be an ideal fit.

The team at APPRO Development has created a list of five signs you should look for, if considering a new location.

Take a look at the following list to learn more about:

The benefits of locating your business in the Airlake Industrial Park
Items to consider before making a move
Additional impacts of choosing the right site for your business

Let’s start with the 5 signs…

There are five items (signs) you should consider when choosing a location in the Airlake Industrial Park (or any site for that matter):

1. Location, location, location. First of all, where are you located now? Is that working for you? You may be reading this blog post because you are interested in the Airlake Industrial Park, (or Lakeville, possibly?) and want to learn more. Consider where you and your employees live. What is the current commute like? Is Lakeville in your backyard? Does that matter to you and your employees? Do you need to be close to the Interstate? Or, near a small airport? If you have answered “yes” to some of these questions, Airlake may be a good fit.

2. Amenities. This ties into the first “sign” or consideration, but it is important to consider what your business location has access to for your business to thrive, and to keep high employee retention. Do you prefer to be close to restaurants? To shopping? Are hotels a factor for clients? Does rail access factor into your decision? What about outdoor storage? Are any of these things your business would like, but doesn’t currently have?

3. Price. When considering a location, pricing can vary from parcel to parcel. Not only the price of land, but what is included. Is the parcel of consideration “raw land” or has it been platted? Does it have utilities to the site? At what stage of development is the parcel of consideration – fully platted with lots and blocks, platted as an outlot, or raw land, just waiting to be developed? All of these items factor into pricing considerations. We have a variety of land parcels available in the Airlake Industrial Park in terms of stage of development, and also in terms of cost per square foot.

4. Business Type. Not all land parcels are right for all types of businesses. Zoning must be taken into consideration. Say for example, you have a great idea for a daycare for pets. Current Lakeville zoning code will not allow this type of use in a commercial zoning district, and therefore must be located in an industrial zoning district, unless City approval is sought for a change to the current zoning code. Knowing the current code and how that impacts your business makes a difference.

5. Future. Where do you project your business to be in 5 years, 10 years, or more? Are you on a site now which you are able to expand upon? Do you plan to add more staff? Do you have enough parking? Do you anticipate needing more outdoor storage?

The Airlake Industrial Park is home to almost 150 businesses, making it the 2nd largest industrial park in the state of Minnesota. Sites are available in the Industrial Park and offer businesses the ease of interstate I-35 access, close proximity to the Airlake Airport, industrial zoned parcels (with nearby commercial and office park zoned parcels) available for purchase now, reasonable list prices for these available sites. Many sites are available on rail lines and outdoor storage is available on some sites as well. We recommend that you start your discussions with an appointment with our team to help you navigate the process.

As you consider your next location, here are some additional resources you may have interest in:

History of Airlake Industrial Park (shared at the Lakeville Manufacturers Appreciation Reception)

Our Recent Projects in Airlake:

NPL Building (new building – design-build project by APPRO)
Mendell Machine & Manufacturing (new office and manufacturing facility addition/expansion project by APPRO)
Hearth & Home (interior expansion and office remodel by APPRO)

If you think that locating your business in the Airlake Industrial Park may be a good fit for your business, or would like more information on available options, please click on the “Contact Us” button to start a conversation.

The worst advice ever about Commercial Building Maintenance

Commercial Building Maintenance – Avoiding nightmares and mistakes

Owning your own property is a proud milestone for any business owner. Maintaining a building can feel overwhelming. When it comes to commercial building maintenance, knowing what to worry about, and when, will help you to protect your investment from decay due to lack of upkeep. Routine maintenance can also help reduce overhead costs, such as electrical and HVAC expenses.

How can you prevent your building from becoming a scary place in the neighborhood??? By planning ahead for routine building maintenance!

Preventative and routine maintenance should be tasks that are incorporated into a regular, recurring plan. Such items can be performed by several independent companies, or provided by one company that specializes in “property maintenance”. Bundling the services is more convenient, but make sure it is clearly stated what services are provided and ask specific questions, such as:

Will there be on-going inspections with feedback of any additional care needed, such as a broken window, water stains, leaky irrigation pipe, etc.?

Will there be any annual inspections to specifically address areas covered, or not, by the maintenance agreement, such as inspecting the smoke detectors?

In the Midwest and Northeast, discuss the amount of de-icer to be used on your sidewalks… Your insurance agent and attorney will tell you to “pile it on”, but your concrete company will tell you “use it SPARSELY”. Discuss the amount of de-icer used with whoever is providing your snow removal. You may find that companies often over apply the product so they don’t receive a call to return and add more. Finding a balance is often hard – you may ask the snow removal company to “lightly salt the walks” and then place a container of de-icer by each door so that you can apply more as needed. Magnesium chloride has become popular as it melts ice below zero and is less damaging to sidewalks (bonus, it’s plant and pet safe!), and seems to work best at very cold temperatures. Also, consider using sand to give traction to the ice, especially on cold days when melting just won’t happen.

In areas that rely on salt to remove ice, pay special attention to the integrity of your sidewalks in the spring. Watch for lifting, chipping, pitting and separating, which may indicate the need for caulking, repair, or replacement.

Preventative and Routine maintenance includes:

Janitorial Services
Window Cleaning & repair
Parking Lot & Sidewalk maintenance
Landscaping
Snow Removal
Floor Care
HVAC
Electrical
Pest control

Additional areas of maintenance that building owners don’t always consider, include:

Painting & Sealing (interior & exterior)
Tuck pointing & caulking
Foundation repairs
Roof maintenance/vapor barrier
Gutter cleaning
Drainage control & Erosion repair
Storm damage
Emergency repairs

If you hire a property maintenance company to handle recurring items, make sure you don’t overlook the items you don’t have a maintenance contract for. Any of the above that are neglected can slowly lead to a BIG problem, for example:

Concrete blocks require a sealant or paint to prevent moisture from leaking from the outside. As blocks weather, sealants and paint begin to wear thin and become less effective. Moisture from rain, snow or humidity can enter the blocks and expand when temperatures become hot, or below freezing. As the blocks expand and contract, the integrity is compromised and eventually the blocks will begin to crack, chip or slough off. When this occurs you are now allowing for even more moisture to enter and for the process to accelerate. It’s not uncommon to find a random weed growing from the blocks of a building that has been neglected!

Additionally, moisture can leak into the building causing water damage and/or structural issues. A good coat of paint applied before an issue is noticed is your best line of defense, along with having gutters that function properly.

The worst advice ever about Commercial Building Maintenance is the advice you are NOT given; Plan ahead, and budget for routine and unexpected building maintenance and emergencies!

Download our complete suggested maintenance list here:

Additional Resources:

Buildings.com provides their own detailed list of suggested maintenance and inspections.

Image sources: Scary building by L.C. Nøttaasen, via Creative Commons license; Winter sidewalk de-icing by BU Interactive News, under Creative Commons license; and Commercial Box Gutter – via wikipedia

LEAN in Manufacturing and Business

Why LEAN?

LEAN in Manufacturing and Business IS essential to maximizing productivity. When combined, reducing the amount of wasted time and resources, your rate of return increases. While it’s easy to understand where efficiencies can be increased in the manufacturing process, we don’t always realize there are many other places within our businesses that can benefit from LEAN.

“Lean for Production and Services”, an article from LEAN Enterprise Institute’s website further explains;

“A popular misconception is that lean is suited only for manufacturing. Not true. Lean applies in every business and every process. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization.”

If you are a business owner, a manager within a business, even support staff, you can look for ways to streamline your processes and to save money.

For example:

Office staff may chose to move to electronic filing of documents for safe storage. Saving documents electronically reduces the amount paper used and office space requirements, which can also reduce operating costs! How is that so??? When less space is needed for filing cabinets and shelving for boxes, you require less space for your office needs. If your office is smaller, operating costs, such as rent or heating and cooling expense will also be reduced.

Additionally, electronic filing allows you to search for documents without leaving your desk or having to go into the office. The time saved searching for files is therefore reduced, which saves staff time and costs!

As a manager, establishing LEAN thinking and processes is a great way to show upper management, and your employees, that you care about the company. Knowing that you are taking steps to think smart and manage costs, employees may be more apt to care about the same ideas. Helping employees manage their workload and time can also be an effective way to boost productivity and reduce errors. The following list from Intelligent Management’s article, Resource Optimization, provides a few recommendations;

“An efficient use of resources to carry out a project requires us to:

Have a shared vision of the global goal to be achieved (remove unnecessary protection from individual tasks)
Eliminate multitasking (increased effectiveness in the tasks)
Identify the constraint (the critical chain) and protect it with a buffer of time (thus protecting the project from variation)
Carefully manage the operational phases of the project (capitalize on time gained)
Carry out a statistical analysis of the project buffer consumption using Statistical Process Control (SPC) (more effective project management)”

Becoming LEAN starts today. LEAN is not all about implementing a new process; it’s about starting a new way of thinking, which leads to creating new processes. “The word transformation or lean transformation is often used to characterize a company moving from an old way of thinking to lean thinking. It requires a complete transformation on how a company conducts business. This takes a long-term perspective and perseverance.” (From the LEAN Enterprise Institute’s website)

Don’t wait until tomorrow, make today the day to transform; It’s time to become LEAN.

For more information on LEAN in manufacturing, view our blog, “Lean Manufacturing Tools – A Quick Summary”.

Find out how our efficient handling of Project and Government processes can help you build, or purchase a building, for your business!

2016 Lakeville Manufacturers Appreciation Reception

Our team had the honor of attending the 2016 Lakeville Manufacturers Appreciation Reception last evening at the Holiday Inn and Suites just off of County Road 70 and I-35 in beautiful Lakeville, Minnesota.

This is an annual event our entire team looks forward to each October, and this year was no exception. In fact, this year, the City of Lakeville staff worked very hard on an impressive video which summarized the history of the Airlake Industrial Park. The Airlake Industrial Park is our backyard and where we first started our business almost 30 years ago. Thus, this year’s focus on the history of the park is near and dear to our hearts.

In this video, you will learn about the history of Airlake Park and how it has grown to be the second largest industrial park in the state of Minnesota. Additionally, you will see some pictures of and commentary from our fearless leader, Jack Matasosky, which is sure to bring a smile to your face – we know it certainly did for our team!

Simply click on the image below to watch the video, “History of Airlake Industrial Park” created by the team at the City of Lakeville.

After viewing the video, you may also click on the following related links, which may be of interest to you:

Airlake Industrial Park Reflections
The Advantages of Airlake Industrial Park

As we attended last evening’s event, as with each year, we find ourselves grateful to serve our local community over the years and the opportunity this event affords our us and our community to thank all manufacturers and those who are a part of the industrial park (transporters and distributors, too!) for their very important role. We sincerely appreciate the opportunity to be a part of the success of our friends and neighbors in Lakeville, Minnesota!

Our team has been honored to be a part of the growth of the Airlake Industrial Park. Today, we continue to erect new buildings as the park continues to grow. And, our APPRO team is continually helping business owners alter their buildings to meet their ever changing needs through additions, expansions and remodels of their already existing spaces. Likewise, our CERRON team continues to help owners find new space in existing buildings within the park.

Whatever the space need, our team is available to help. If you find that your space needs have changed, we hope that you will consider working with our team.

Pet Friendly Office Design Ideas & APPRO and CERRON’s Furry Friends

Learn more about Pet Friendly Office Design Ideas…and our team’s favorite furry friends!

In recognition of “Hug Your Hound Day” which happens to fall on September 14th, our team decided to have some fun sharing some pet friendly office design ideas and a little more about our “furry friends” in an interactive game.

Below, you will find a quick link to a game that we created (with the help of the Qzzr app/website). Test your knowledge of our team’s best friends, and see how you stack up against other players.

Once you have played the game, take a look at our “Pet Friendly Office Design Ideas” section to learn more about bringing your furry friends to the office and ways to make it work.

CLICK ON THE IMAGE BELOW TO START PLAYING THE GAME…

AFTER playing the game, click here:
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We also encourage you to jump on Facebook or Twitter using the hash tag #hugyourhound2016 to share pictures of your favorite hound.

Pet-friendly office design ideas

Dogs make us smile, smiling reduces stress, reducing stress increases overall health and that helps to fight off illness, therefore reducing the amount of time taken off of work and the costs associated with employees seeking medical treatment, which sounds like a good thing to me!

As people are waiting longer to have (or choosing not to have) children, it is common for working adults to turn their attention and care on a beloved “fur baby”. Companies are learning that when a person is allowed to bring their dog(s) to work, they don’t need to rush home and they can remain at work to finish projects and meet deadlines and surprisingly, their productivity goes up and their overall feeling of job satisfaction increases. In 2015 almost one in ten workplaces is now “dog friendly” as reported in a “ survey conducted by Human Resource Management, 8 percent of workplaces in America allow employees to bring their pets to work.” (Source: “Pooch perk…”)

How does a place of employment make the move to being a dog-friendly work place???

To become dog friendly, if you don’t own your building, you will need to read your lease and seek permission to have dogs on-site. Having a plan written up on how you will address the “wear and tear”, along with a “potty plan”, will help your landowner to recognize your willingness to be a responsible tenant. You may also need to consult with current employees to find out if there are any allergies or concerns with the transition and it would probably be a good idea to talk to your insurance agent as well.

Once you make the move to become a dog-friendly environment, a few considerations are:

How will the dogs be kept in their own area? Private offices are ideal, but cubicles work great in an open concept office. A kennel can be slipped under a desk to allow the employee’s dog a place to lay down and relax and a baby gate (the walk-through swinging kind) will limit a dog from roaming and distracting co-workers and their dogs. There are now crates designed to look like furniture, an existing desk can be altered to accommodate a crate, or a fabric crate cover can be used to conceal a pet when needed, such as during client meetings.

Where will the dogs play? IF you are fortunate enough to have a large area, use it for scheduled playtime! A dock area can work great for this, as long as the floors are clean and a fence can be put around the designated play area. There are different types of pet-friendly flooring that will reduce slipping and is easy to clean up, such as rolled rubber flooring and tiles. Artificial turf looks great in cubicles, but isn’t easy to clean up messes from.

Where is the doggy “restroom” going to be? Designate an area that employees can take their dog to get some fresh area and do their business. If possible, this area should be away from the main entrance with a trash container placed down-wind from the entrance. Adding a sprinkler system to flush the lawn nightly will help to reduce the “doggy smell” and will help keep your grass happy. Plant trees or shrubs that won’t be affected by dog urine and to add privacy to the area, if needed.

Work with an architect to create an interior build-out that will be inviting to your employees and their pets, the costs involved in making some minor (or major) changes could be recouped in the savings earned by reducing employee turnover and increased employee productivity! Changes can include installing non-slip flooring, a bowl cleaning and watering area, custom cubicles with swinging gates, a dog-friendly entry that will prevent runaways and converting an office or unused space into a sound-proofed playroom. Also, keep fabric covered furniture away from areas where dogs will be walked to avoid dog hair or the over zealous boy from using your ottoman as a fire hydrant.

The following article provides some further information on, “To Dog or Not to Dog: What You Need to Know before Making Your Office Pet-Friendly”

An idea of a dog friendly designed office can be seen here: Dog Friendly Office Design

We hope you had fun getting to know our entire team a little more with our fun game and also learned how to create a pet-friendly work environment! We have a great team here at APPRO and CERRON (including our furry friends) and would appreciate the opportunity to have you meet more of our team members.

Please contact us to schedule a meeting with any of our team members to start your next commercial or industrial property solution.

1. Just plain cool architecture

2. Cool Minneapolis St. Paul Office Space @ Ergodyne

3. Modern Architecture’s Intense Rivalry

4. Augmented Reality’s Impact on Construction

5. Trending Restaurant Design (the Modern Burger Joint)

LOVE DESIGN TRENDS?

We do, too! You may also be interested in these articles and links:

Architectural Design on APPRO Website
Commercial Office Design
Retail Design Ideas

We hope you enjoyed this article and if you would like to read more blog posts like this one, we would encourage you to sign up for our newsletter for a monthly dose of design and architecture ideas, as well as construction, real estate, local community events, and more:

7 Misconceptions about Commercial Building Construction Projects

Having worked in design-build and commercial construction since 1978, our construction team has heard a lot of questions, comments, and a few misconceptions about commercial build projects.

We would like to share with you some of the misconceptions we have heard over the years regarding commercial build projects and bring some clarity to this topic. Take a look at the following misconceptions and each of our responses.

Seven Misconceptions

1. Building a commercial building can take a really long time.

Reply: The length of time it takes to build a new building initially depends on three major factors, which include: design, site selection, and financing.

With regard to the design of the structure, if an owner has a clear idea of their wants/needs/goals, the initial design can go rather quickly. This process may also depend on who is making the decisions. How many decision makers are involved? Does an individual make the decision, or will it take multiple committee meetings to make a decision on the final design? These all play into the amount of time it takes to determine the final design of the building, which is the origin of future activity (like competitive bidding and overall project budgeting).

The site selected also factors into the overall time it takes to build a commercial building. If, for example, a site is “shovel ready,” which according to the State of Minnesota’s Department of Employment and Economic Development (DEED), means “planning, zoning, environmental studies, title work, public infrastructure and other pre-construction activities have been completed on the site,” a project may begin sooner. The idea is that the site is as ready as it possibly can be and construction may begin upon purchase of the site. If, on the other hand, the site is considered “raw land” there will be more time involved to go through the various processes to get that similar parcel to the same stage.

Thirdly, getting financing in place will contribute to the time it takes to start a new project. Surveys, title work, appraisals, and any other lender required activity, if not already complete, in addition to the underwriting process, can all have an impact on the time it takes to get the project off the ground. Working with a reputable lender, who understands the commercial building process can make a world of difference in the length of a project. The sooner the choice of lender is made, the sooner the process can begin.

With regard to overall timing of a new project, a typical new construction project can range in time from months to as much as a couple of years, and as stated previously, depends on many factors. Our advice is this…you can never start the process too soon.

2. It is better to buy an existing building than to build new.

Reply: For some business owners, this may indeed be the case. Again, there are a variety of factors that play into this decision. These factors may include: geographic location, zoning, proximity to competing business, price, municipal support, and many more factors. A business owner may find that existing buildings simply do not exist in an area of interest, satisfying all items on their “wish list.” In these cases, the only option may be to build new. The age, condition and amount of demolition, renovation and improvements should be identified and compared to a new build.

3. The property taxes are higher on new construction.

Reply: Actually, the first year taxes will be based on land only (verses land and improvements) and will be lower, as a result. The next year’s taxes will be based on both land and improvements at a rate determined by the local taxing authority (State, City and County), and based on assessed or “estimated market value.” This rate is not higher than other existing buildings, nor is it higher simply because it is “new”, but it will typically, at least in the state of Minnesota, be higher than a residential property tax rate. Additionally, there are sometimes incentives available which may lessen the initial tax burden for companies in exchange for a new building which brings new tax revenue for a community, as well as the promise of an increase in jobs. An example of this is TIF, which stands for Tax Increment Financing and is sometimes used by various cities to create a TIF district to encourage new development (both residentially and/or commercially), or in some cases for existing businesses to stay and add onto their building (and staff). This activity benefits all involved including the city with increased tax revenues and increased employment rates within their community.

4. Projects always cost more than originally estimated.

Reply: Pricing a new construction project will always vary from company to company. We can only comment on our company’s methodology – which is an open book policy and the process we use to convey pricing to our clients. The team at APPRO takes great pride in providing a clear and transparent approach to our construction estimates. Our goal is to provide the most accurate picture for owners so that they can make an informed decision. We recently had an example of a bid in which we came in second. While we were disappointed we did not win the bid, we felt we were accurate and honest with the applicable costs. Later, the owner approached us to let us know that he thought he had made a mistake by not working with our team. While the other company was lower in their bid initially, they ended up adding costs during the construction process, and they ended up higher than our initial bid. We aim to be accurate and forthright in all that we do in order to avoid frustration or disappointment down the road. We believe that our long history of repeat customers, who have appreciated our upfront approach, speaks volumes in this regard.

5. Projects always take longer than originally estimated.

Reply: Once the major aspects of design, site selection, and financing have been completed, the actual construction process may be determined. From the onset of a new project, our team creates a key event schedule which lays out all of the necessary steps to get a project under way. Outside of issues like unforeseen weather, a supply shortage, or owner initiated changes to design or materials selected, a construction project can be easily summarized into an overall construction schedule. Our goal is the same as that of our owners – to complete the project on time, and on budget.

6. The city process is next to impossible to navigate.

Reply: Each city has different nuances in their approach to a new building project, but overall the main steps are the same. City process on a new building project typically includes a preliminary development review, then zoning, land use reviews, platting process (if un-platted), construction permit review and construction plan review, and construction inspections, before a final certificate of occupancy inspection upon construction completion. We understand the process and every step along the way, and our team expertly helps each of our clients through the process.

7. Land prices & building materials are priced so sky-high, you really can’t afford to build new.

Reply: Land prices across the metro area vary, based on location, size, platted vs. un-platted, and zoning. Concerning building materials, items to consider are concrete (used in foundations, tip up panels, etc.) and structural steel. These are what we refer to as “long lead items” and are typically the largest costs in a commercial or industrial new construction project. While in years past, the cost to build new far outweighed the cost to purchase an existing commercial building, more recently, we have seen valuations on existing property increase, and the supply of existing buildings begin to diminish. The lower existing inventory at increased valuations, coupled with low interest rates for new projects, might make now an ideal time to start a commercial build project.

If you think you might be interested in starting a new building project, we encourage you to meet with our team. Our process is pretty simple, and begins with a short meeting in which we listen to your needs, and then determine next steps. We are here to help.

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Top Ten Reasons to Join the Lakeville Chamber of Commerce

The team here at APPRO is a proud member of our local Lakeville Chamber of Commerce. We have loved being Chamber members for more than twenty years and strongly believe there are so many benefits. So, we decided to create a “Top Ten List” of reasons we joined and remain members of the Lakeville Chamber of Commerce. We hope you enjoy and this may help you make the decision to join, if you have not already!

Our top ten reasons include (in no particular order):

We grow in knowledge of relevant community and business topics: State of the City, Speakers/Luncheons, and Women’s Luncheon, plus more…
We can access savings offered by other members: Hot Deals
We learn about the new businesses and services offered by fellow members: Directory
We increase our brand recognition through a variety of marketing opportunities: Link to our Available Properties and Design-Build Services
We gain a voice in government. The Chamber is your voice before elected appointed and regulatory officials: See sources & Economic Development.
We give back (and have fun): Lakeville Foundation Bowling Tournament, Golf Classic, & YEA!
We meet our neighbors: Morning Brew and After Hours
We learn what is going on in our community: Newsletter and Facebook
We visit newly opened (or relocated) businesses: See Threads and Inks Relocation…
We continue to work with fellow chamber members all the time: See fellow Chamber Member, Express Employment Pro’s new digs…

If you are interested in talking to us about membership in the Lakeville Chamber of Commerce, you may contact a member of our team HERE, we would be happy to answer any questions you may have. Otherwise, please consider signing up for a membership today by clicking on the following LINK.

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