Search FAQ's

The leasing agent has the listing on the property and represents the interests of the building owner. A tenant representative or "rep" represents the interest of the tenant in a lease transaction. Some agents work exclusively on listings, others will take on tenant representation engagements only, while others will work on both.

Title insurance is nothing more than an insurance policy that provides assurance to interested parties that there's good and marketable title to the property being insured. However, this never means that title insurance guarantees perfect title. As with all insurance, there are a number of different types of policies and endorsements. There are also many exceptions to title, which all tie back into information in the preliminary title report. These include specific exceptions listed on the property to be insured, as well as standard exceptions.

One standard exception, for example, is that the insurance will only be provided for exceptions to title that are reflected by the public records. Unless a special endorsement is obtained (which costs more money), there's no obligation on the insurance company to insure against defects in title that would have been apparent from surveying or otherwise physically inspecting the property.

There are also different types of policies. For example, it's customary in most states for a seller to pay for standard coverage for the buyer that insures that the deed from the seller is conveying title that it purports to convey, subject to exceptions in the title report. If a buyer wants additional protection against third party claims such as mechanic's liens, the buyer can purchase an owner's policy. If a loan is involved, a lender's policy can be issued that specifically insures the lender against title defects.

The type of deed can make a big difference. In Indiana, the typical conveyance is a warranty deed, which is a type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to you. The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins.

All states have something like a quitclaim deed where a party is only signing over whatever interest that party has in the property, if any.

Real estate purchase contracts can be extraordinarily simple but usually end up being very complex and lengthy documents, in order to try to address all the "what if's" that are typically involved in a commercial real estate transaction. Points that would typically be covered include:

• Parties
• Recitals (background facts as to why the parties are doing the deal)
• Description of the property
• Sales price and terms of payment
• Title and title insurance
• Closing date
• Escrow provisions
• Conditions to closing
• Representations and warranties
• Environmental and hazardous waste provisions
• Zoning and land use issues
• Rights to inspection
• 1031 exchange provisions, if applicable
• Liability insurance requirements
• Indemnification and hold harmless provisions
• Remedies if a party breaches
• Rights to amend and modify
• Term and termination
• Rights to assignment or delegation of rights
• Attorneys' fees and costs
• Arbitration rights, if any
• Governing laws
• Other standard provisions

Some lenders may require an environmental site assessment, and there are certain situations where it only makes sense to get one (such as when you're buying a service station or a manufacturing business). Otherwise, though, the chance of there being any problem may seem remote and it may be tempting to pass on doing an expensive assessment. But you're probably doing yourself a disservice if you don't get one, as any problem that arises could result in catastrophic liability exposure for you even if you didn't cause the problem.

There are also different types of environmental site assessments. A "Phase I," for example, generally involves an inspection of the property and review of various records, but it doesn't actually involve any boring or drilling, or the testing of soil or water samples. These activities are usually done during the course of a Phase II assessment, which can be quite expensive. It's usually an option for a buyer to do a Phase I assessment and consider the results and recommendations of that process before deciding on whether to proceed further.

A "1031 exchange" refers to a method of deferring tax on the sale of an interest in real property allowed under section 1031 of the Internal Revenue Code. In brief, it allows a seller to defer tax on a gain that would otherwise be realized on a sale of property if the proceeds from the sale were reinvested in like-kind property. It's quite common for a 1031 exchange to be involved in some manner in a commercial real estate transaction.

A seller must contractually arrange to convey his or her interest in the property being sold in exchange for receiving an interest in another piece of commercial property. If cash is involved, an escrow company or facilitator usually it, because treatment under section 1031 won't be possible if the proceeds are paid to the seller even for an instant. In practice, however, the rules for a 1031 exchange can be quite complex and it is easy for a seller to run afoul with them. It's always advisable to have competent legal counsel involved in the transaction.

Office buildings are categorized according to their location, age, size, condition and amenities for comparison purposes.  Class A buildings generally command the highest rents and are attractive and prestigious.  Class B buildings may be similar structurally to Class A buildings, but cannot command the highest rents, usually due to a less desirable location or amenities.  Class C buildings are usually substantially older and often located on the perimeter of the center business district.

If you have purchased an investment property and are planning to rent it for commercial or residential purposes, it is highly recommended you utilize a property manager. If you’re a first time investor, you may not realize how time consuming effectively managing that property can be- you may become overwhelmed in no time at all. Even if you’re a veteran investor, you may think you have enough experience to forgo the expense and manage things on your own, only to find out you’re completely in over your head. Both of these scenarios are fairly common, and a property manager can help you with operations of your property.

CAM stands for Common Area Maintenance and is the expense a tenant pays for maintenance of the areas that are shared in common by all tenants. Usually those costs would be parking lot maintenance, lighting, landscaping, etc. In addition, tenants usually pay a portion of the real estate taxes and insurance.

Yes, we always contract with experienced and skilled vendors for landscaping, janitorial, heating and air conditioning, pest control, paving, parking lot sweeping and other well qualified contractors.  

The rental market truly determines what the going rate is.  We use our marketing skills, market comparisons, and judgment to maximize your rents.

We are on call 24 hours a day and 7 days a week and can be reached by calling (260) 489-8500.  When an emergency call is received, we then determine the level of emergency and dispatch our qualified technicians to remedy the problem.

Owner responsibilities include having insurance on the property and making sure that the property is in compliance with State and County code requirements for health and safety. Property owners are also financially responsible for required maintenance and repairs to the property. While our professional property managers will manage the process, property owners are still responsible for any work done.

Rentable square feet is the square footage of the space and the space’s pro rata share of the common areas of the building (lobby, common hallways, shared restrooms, etc.).  Usable square feet is the actual square footage of the suite.

Yes, our affiliate, Sterling Associates, specializes in residential real estate.  Contact Tim Green at (260) 490-8050 for more information.

Broadly defined, asset management is a systematic process of operating, maintaining, and upgrading assets cost-effectively.

A CCIM (Certified Commercial Investment Member) is a recognized expert in the commercial and investment real estate industry. The CCIM lapel pin is earned after successfully completing a designation process that ensures CCIMs are proficient not only in theory, but also in practice.

The SOCIETY OF INDUSTRIAL AND OFFICE REALTORS® is the leading professional commercial and industrial real estate association. With more than 3,000 members in more than 580 cities in 28 countries, SIOR represents today’s most knowledgeable, experienced, and successful commercial real estate brokerage specialists. The SIOR designation is a professional symbol of the highest level of knowledge, production, and ethics in the real estate industry.

The Building Owners and Managers Association (BOMA) International is an international federation of more than 100 local associations and affiliated organizations. Founded in 1907, its 16,500-plus members own or manage more than nine billion square feet of commercial properties. BOMA International’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information.

A CPM (Certified Property Manager) is a recognized expert in the real estate management industry.   These esteemed credentials certify competence and professionalism for those engaged in real estate management. 

The Lipsey Co., has ranked the Sperry Van Ness Organization as one of the most recognized commercial real estate brands in the US  From the first day it lists a property, the Sperry Van Ness ORGANIZATION of affiliates is the only brokerage firm that markets all properties on a national basis to a 100,000-strong brokerage and investment community.

Because of its national reach that includes primary, secondary and tertiary markets, the Sperry Van Ness Organization excels at seamlessly locating investment options on behalf of clients across the country while leveraging the power of all brokers — even those with competing firms.

Unlike most brokerage firms, everything that the SPERRY VAN NESS ORGANIZATION does is designed to achieve better results for real estate investors. Frankly, no other brokerage firm commits to putting the client’s interest first as quickly and effectively as the affiliates of Sperry Van Ness. It’s proven through our people and processes.

Year after year, transaction after transaction, our results prove it. Maximum cooperation equals maximum value.