According to the report, the monthly index of manufacturing showed a nice increase from December to January, rising from 54.9 to 58.4. Two things about this are worthy of note:  one, this marks the 6^th consecutive month of expansion, the fastest upward movement since summer of 2004. Two, any reading above 50 signals expansion, and that’s a good thing.

On the other hand, total construction, projected to decrease jut 0.5%, actually fell 1.2% in December on the heels of another 1.2% decline in November.

Home sales were reported up by 11% in December over the same month a year ago, while the U.S. non-manufacturing sector rose to 50.5 in January, just short of the anticipated increase of 51.

Mortgage applications, another good indicator, showed a rise for the week ending January 29 of 21%, with purchase volume increasing by 10.3%, and refinancing applications up by 26.3%

From the Commerce Department, we hear that December factory orders increased by 1%, double what some leading economists had predicted. This marks the fourth month in a row where factory orders were reported up over the previous year’s results.

Productivity, of course, is another indicator we keep an eye on—if it remains strong, that’s always positive news for commercial property owners with manufacturing tenants. The good news here is that productivity showed a annual rate increase of 6.2% for the fourth quarter. Labor costs fell by 4.4%.

Good news also on the unemployment front where the national rate fell to 9.7% in January versus 10% in December. At the same time, 20,000 jobs were lost, but bad as that is, it’s still better than the 150,000 jobs lost in December.

Michael Prochelo is President of Financial Management Group, A Los Angeles based boutique business management and real estate investment company helping individuals and families secure and maintain their financial future.  Information on Financial Management group can be found on Zoliath.com.

A major pitfall for Commercial Real Estate Agents and Brokers when they first begin to list the property is that they inadvertently find themselves delving into aspects of law without the necessary deep experience.

Interpreting, creating, or even modifying leasing documents before a sale is the field of legal specialists and in particular the landlord’s solicitor. You will be regularly involved in negotiating new leases and changes to documentation to prepare the property for sale; hence a good working relationship with that solicitor is important.

Some lease proposals and leases are easier to create and process than others. Be aware of all potential problems, and take the precaution of getting your office manager’s approval on every lease proposal you negotiate. Take special care with retail tenancies as they are impacted by separate leasing legislation in most locations.

Never proceed to create a lease proposal or lease strategy unless you understand all the issues, and never alter any signed and final documentation. Follow these fundamental rules; you then are not likely to slip into any legal minefields.

Never rely on oral agreements. Put everything in writing.
Keep a log of all contacts with buyers, sellers, landlords and tenants. Record and date all information obtained from these sources.
Never permit your company’s approved forms to pass from your control. If you give a blank proposal or lease to prospects, you run the risk that they may modify it or use it for some unauthorized activity. In such a case, your firm might be held legally liable for the consequences.
Choose your cooperating or conjunction agents carefully, and put all agreements with them in writing before you get involved with them.
Consult your manager whenever you find yourself in an ambiguous legal or ethical situation.
Remember that all written agreements must be signed by both parties to the agreement in order to be enforceable, and each signatory must receive a copy of the agreement.
Never alter a proposal without your manager’s approval, and never change an original signed document without the full knowledge and consent of all the parties concerned. It is prudent practice to never change an original signed document, but to seek a fresh document as its replacement.
Never sign a document of any type on behalf of your client (the Landlord or property owner) without the absolute written and correct authority to so act. It is prudent practice to always get the client to sign any critical document such as a contract or lease. If the Landlord is a corporate structure (Company) it is likely that the ability to sign on behalf of your client is not an assignable matter anyway. Certain ability to sign in those circumstances is governed by common and corporations law.

Make sure you understand your Appointment to Act well and use it to its fullest advantage. Never step outside that authority to act and the duties it describes. Every property should be considered as unique. All of the items in the Leases and all the ’standard’ conditions need to be tested against the particular circumstances of your client, your client’s tenants, the property with its services, and the requirements of local and regulatory authorities. This is done before you move towards sale. This will ensure a tailor-made sale process and that the best marketing and negotiation processes are achieved.

Some Recommendations

Sort out any tenancy situations or problems early in any sale listing appointment. This may require the assistance of the Landlord’s legal advisor.
Undertake your own ‘Due Diligence’ process of the seller’s property. Start with the current title search. Also look at the lawfulness of existing uses and lease and search the Local Council and the Environmental control bodies.
Workplace Health and Safety issues should also be looked at to ensure compliance to the current regulations, and if food handling is involved in any of the tenancies, inspections by the local health inspectors may be prudent.
Do not rely on disclaimer clauses. If a document was entered into as a result of misleading conduct, the disclaimer clause will not help or protect you from any legal action.
A disgruntled tenant will not only target the actual Landlord, but will most likely join the Selling Agent in any action as a third party.
Poor tenant relations should be understood before the sale promotion starts as many a tenant has impacted a property sale and price. Buyers will usually talk to tenants about the property before they sign a contract.

John Highman is a prominent commercial real estate speaker and trainer. His other articles for commercial real estate agents and brokers can be accessed at http://www.commercial-realestate-training.com.

Article Source: http://EzineArticles.com/?Legal-Aspects&id=3773547

Every business owner should be educated about insurance coverages before their business opens. Protecting your business and personal assets is of utmost importance. As you begin the process of educating yourself about business insurance, commercial liability insurance will often be the first coverage you consider.

While conducting business, every business owner can be held responsible for the safety and well being of their customers. While in an establishment, if a customer injures themselves it is very possible that the business owner will be legally liable. This means that the owner would be required to compensate the injured for the injury to their body. Coverage of this nature is called bodily injury coverage.

Personal Injury is another type of coverage included in a standard liability contract. Personal injury is distinctly different that bodily injury as it is less tangible. Personal injury is often of a psychological nature rather than a physical nature. An example of personal injury might be slander. When a consumer is slandered by a business owner or one of it’s employees, the owner can be held responsible. Insuring against such claims is extremely important.

Advertising liability is yet another type of liability covered in a commercial contract. If a business inadvertently uses copyrighted material in their advertisements, the owner could be held financially responsible for the copyright infringement. This is a situation that may be protected against under a commercial liability contract.

General commercial liability contracts typically have a moderate dollar limit on claims. Therefore, it is important for business owners to obtain appropriate levels of coverage to protect their assets. For example, if a business owner is found responsible for a 1,500,000 dollar claim and their policy provides a one million dollar limit, the owner would be responsible for the additional five hundred thousand dollars. This type of judgement could devastate a small business owner.

If a business requires higher insurance limits than a general liability policy can offer, it is common to purchase an umbrella policy. Umbrella policies are an aspect of commercial liability insurance designed to provide higher limits of coverage. When a business has more to lose, it is important to carry higher limits of liability coverage. As always, when choosing how to protect your business it is wise to utilize the services of a licensed professional. Take the time to find a general agent or insurance broker to help you navigate the tricky field of commercial liability insurance coverage.

Different industries require different insurance coverages. For example, a general contractor should consider contractors insurance. Or professionals may need errors and omissions insurance coverage to protect against potential mistakes they make that can cause their customers to experience a financial loss.

Article Source: Commercial Liability Insurance Coverage Briefly Explained

What is a Short Sale?
A Short Sale occurs when a Lender approves the sale of a property for less than the amount that is owed on a mortgage or mortgages. The name, Short Sale, comes from the fact that the Lender’s payoff is coming up “short”. In fact, the lender will also be paying the real estate commissions and other closings costs. The sellers in a short sale typically cannot receive any funds from the sale.

Lender Approval
A Lender must approve of the sale. This is accomplished by first sending a Short Sale Package to the Lender(s). Next, the file is assigned to a loan negotiator at the bank that reviews the Short Sale Package. At this point a negotiation will take place as the bank wants to get as much money as possible from the defaulted loan and the potential buyers want to spend as little as possible to purchase the property. During this process the bank will order a Brokers Price Opinion or an Appraisal. Once the bank agrees to accept a certain discount off the mortgage amount, Short Sale Approval Letters are furnished by the bank and a closing follows thereafter.

Short Sale Package:
1. Purchase and Sale Agreement (from Realtor)
2. Addendum to Purchase (from Realtor)
3. Authorization to Release Information
4. Two Years FULL Tax Returns
5. Two Months Bank Statements (Most recent)
6. Last Two Pay Stubs
7. Fill Out Financial Worksheet
8. A Handwritten Hardship Letter
9. If FHA, Form 90036 and Homeownership Counseling Certificate

What is an Authorization to Release Information?
An Authorization to Release Information (ARI) is a document that allows your attorney or negotiator to communicate with the lender concerning your short sale. This form will allow your attorney or negotiator to order payoff, send in a purchase offer to the bank, and to negotiate with bank negotiators. Banks will not speak to any negotiator that has not first submitted an ARI that includes the seller’s names, signatures, social security numbers, and bank account information.

What is the Financial Worksheet?
The financial worksheet is a standard form that is used to show a seller’s budget; income vs. expenses. Some lenders may require that this information be resubmitted on their own form. Your personal financial information is needed and should be as exact as possible; including gas, car payments, mortgage payments, food, medical, child care, entertainment, etc. Lenders want to see where your money is going and may deny your short sale request if there is a surplus of money at the end of each month.

Frequently Asked Questions:

Will I Qualify?
To qualify for a short sale, a property owner must typically be in default. This means that the property owner is behind by at least three payments. Most often, there is also a foreclosure case filed against the property owner by the Lender.

How Will This Affect My Credit?
If you are in default, chances are that the Lender has already reported you to the credit bureau and damaged your credit. A Short Sale will prevent your property from being foreclosed upon and sold at auction, further hurting your credit. While a Short Sale will not solve your credit problems, it is better than the alternative.

What is a Hardship Letter?
A Hardship Letter is a simple letter provided to the bank that illustrates the reason(s) why you have fallen behind in your payments. The letter should include any and all events that have led to financial hardship, including, but not limited to, divorce, job loss, bankruptcy, reduced hours at work, illness, death or disability. The Hardship letter should also include any measures you have taken to sell the property. For example, did you list the property with an agent or For Sale by Owner? If so, how many showings were there? Also, it is wise to include any repairs that are needed on the property in the hardship letter.

Disclaimer: While The Suncoast Lawyer is in fact a lawyer, nothing in this article is legal advice. Please consult an attorney that can become familiar with the details of your case and then offer advice that is correct for your specific situation.

The Suncoast Lawyer, Attorney Christopher J. Horlacher, is an attorney practicing law in Sarasota, Florida. Attorney Horlacher focuses mainly on the areas of Real Estate Closings, Foreclosure Defense, Short Sale Negotiation, Construction Law and Business Law.

His website is http://www.thesuncoastlawyer.com and his email address is Chris@thesuncoastlawyer.com

Article Source: Short Sale Basics

1. Location: The old adage, Location, Location, Location is still true but retailers today must take this one step further. A great location means different things to different retailers. For instance, a great location for a restaurant that serves only lunch and dinner may be a poor location for a coffee/espresso retailer. A great location for a high-end jewelry store may be a poor location for a check cashing / payday loan retailer. In order to determine the best location for a particular retail business one must look beyond the general notion that a strong site is universal and consider what makes it such.

2. Demographics: A strong retail location will encompass a trade area that has a dense population of your core customer base. This can be daytime population (businesses & employees), residential population (commonly known as rooftops) or both. A strong location is one that is visible (regularly) to the types of customer that you want to attract. For example, a location that is close to a residential population that has many young working families may be a good location in which to consider opening a day care business. A daytime population that has a lot of white collar employment in a ½ mile radius may be a good location in which to open a casual restaurant that specializes in lunch and dinner. The “right” demographics are different for every retailer.

3. Ingress & Egress: A strong retail location MUST have easy access from the major streets servicing the property. In the retail world you don’t want to have what is known in the industry as a “Statue of Liberty” location, meaning one that is extremely visible but next to impossible to access. We all know that consumers are lazy. If given the choice a customer will favor one retailer over another (goods & service being relatively equal) simply because it is easier to drive in and out of the property’s parking lot. This is a fact and you can see its effect on retailers all over your city if you look hard enough. Make certain that the location you choose has good access.

4. Signage: A visible sign is very important to all retailers. If your customer can’t see your business how can they shop there? A well located, visible sign that identifies your business is critical to your success. On the flip side, many retailers think that monument or pylon signs are a necessity. This is only partly true. If you are an “anchor-tenant” and are able to erect a sign that is large enough to see from at least 1-2 blocks away, a monument or pylon sign will be helpful. Otherwise, traffic moves at such speed and there are so many visual displays competing for the motorist’s attention that a minor position on a multi-tenant sign will do little to draw traffic into your business. You are better off taking the time to evaluate the type, size and visibility afforded your storefront sign and base your signage decision from this perspective.

5. Parking: Depending on the type of retail business and the type of location you are seeking (urban vs. suburban), parking will be part of your decision making process. This includes off-street parking (parking lots), on-street parking, fee-based parking (garages or metered) and the number of available spaces easily accessible to your business. If you locate next to a restaurant be prepared to see spaces in front of your business used for their overflow parking at peak times. If you are located next to a doctor’s office or health club, be aware that their customers will park for a minimum of 30 minutes. All of these factors can and will affect your customer’s ability to park close to your business.

There are many factors to consider when searching for the right location for your retail business. The 5 mentioned in this article must be at the top of your list and be carefully reviewed before signing a lease or buying a property. A commercial real estate broker that specializes in retail brokerage should have the resources to help you wade through these and other considerations you will face when choosing the right location for your business.