Industry News | The Schueler Group of Companies - Henkle Schueler and Bunnell Hill - Real Estate, Development and Construction
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Apex Eye Offers a “Visually Appealing” Office Space

Jackie Slaght : October 3, 2018 10:00 am : Industry News, News

Schueler Group completed construction of a 10,000 SF medical office space for APEX Eye at their development located off Tylersville Road at 6150 Radio Way, in Mason, OH.

“Dr. Edward Meier, our client and a highly-acclaimed ophthalmologist, has high standards for his practice and for his patients. He wanted the new facility to have the elements that people are accustomed to in residential settings, but in the commercial environment,” Dan Thomas, Schueler Group Project Manager, said.

This is something that is unique, but also becoming more common. Often the look and feel that is in our homes is something that clients would like to see reflected in their workplaces. In order to replicate this takes creativity and familiarity with materials. Dan Thomas has worked in the construction industry for over 30 years.

Mark Hail, Schueler Group Superintendent managed the Apex Eye project on site.  Mark has over 25 years of construction and property management experience.  Dan and Mark were pleased to apply this experience while working with KBA Architects through this process and appreciated the trust Dr Meier and his team placed in the Schueler Group.

“We are pleased when we complete a project like Apex Eye as it truly demonstrates impeccable work, stellar design and a client who understood how these vehicles would impact his own business. It has been an honor to work with the team at Apex Eye.”Thomas said.

Dan and Mark came to the project with vast and diverse backgrounds. Their experiences in all aspects of the design build process, construction management and specialization with working in a fast-paced environment brought all components of Apex Eye in on time and on budget.

“Having Dan and Mark on my team makes all of the difference, and truly showcases the Schueler Group commitment to our clients,” stated Kevin Scott, President of Bunnell Hill/Schueler Group Construction Company.

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Southwest Ohio continues to be HOT

Jackie Slaght : September 24, 2018 10:13 am : Industry News, News

Greater Cincinnati (South into Kentucky and North past Lebanon, Ohio) continues on a growth trajectory. The area has become known for high inventory for industrial interests which gives businesses location choice as well as a high livability quotient for the workforce.

According to Forbes (April 2018)

Forbes sites that Greater Cincinnati has a share of gentrified and new housing that provides options for people of all ages to live and to work.

Combine this with location for businesses to prosper, and an otherwise healthy economy, makes this region ripe for continued growth. Cincinnati is second only (in Ohio) to Cleveland for industrial inventory. Since 2016, 2.8MM square footage has become available. Amazon distribution centers and other high visibility retailers have chosen to locate in the region. Amazon has located their largest distribution facility here, added jobs and contributed to the local economy.

Those who choose to locate in the area are currently most drawn to I-75 North which is a pathway to land listed and managed by Schueler Group. Schueler Group continues to provide organizations prime sites via our 20 business parks adjacent to both the I-75 and I-71 corridors. Other areas that continue to be hot include the Northern Kentucky/CVG submarket – near the airport where Schueler Group manages over 235 acres across 4  business parks.

This surge has encouraged both national and global investors to be attracted to the region. Schueler Group continues to be at the center of much of this development.

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Why history matters: Understanding CRE market trends and predicting the future

Jackie Slaght : August 23, 2018 9:00 am : Industry News, News

Mike Schueler President and CEO Schueler Group

I have worked in the construction, development, land and real estate business for over 40 years. In that time, the commercial real estate business has witnessed the highs and lows of the economy and had a front row seat to growth, trends and market challenges that we have confronted. One must not look far to understand that the economic lows, while they are a challenge, that often result in vibrant recovery as well.

Our organization was founded in 1935 during the middle of America’s Great Depression which ran from 1929-1939. In fact, a real estate boom had occurred in the 1920’s prior to the stock market crash of 1929 – followed by many years of challenge. Our founder, George Henkle, as a young man, saw an opportunity to help out the farming community and began a business as a farm brokerage.

The land that comprises Butler and Warren Counties was farmland and Henkle understood that by working with farmers, an opportunity could be fostered for all. His early transactions included the land upon which King’s Island now sits. Henkle ultimately had an early vision that Cincinnati and Dayton would become one large combined market – which he termed a “Super City”.

At this time, the area was farmland and the Cincinnati “suburbs” were generally south of Norwood.

Fast forward to today, and his vision is nearing reality.

By understanding the dynamics of market downturns, our business can forecast and adapt our vision and plan for the future. This requires an understanding of the history as well as an optimistic view of the future. This requires planning, perseverance and committed work teams.

Most businesses continue to endeavor for the long haul. While many would like the “get-rich-quick approach,” I like to say that we are in the “get rich slow” business. While the former is most appealing, the latter is the more realistic.

The dot.com boom (and bust) and the more recent start up boom, likely instructs us that most individuals and business organizations do not partake in the “get-rich-quick.” They must accept that success demands hard work, long hours and focus are what makes for solid business planning.

It is critical to focus upon lifestyle trends as well as generational activity. 2018 and the years ahead are very much about the impact that the baby boomer generation has on the overall economy. As this generation ages, they look to where they will live and retire. Both of which heartily impact the development business.

The millennials and generations preceding them have their own ideas about their lifestyles which includes where they will work in proximity to where they live. This impacts transportation, location of their homes (and are these apartments or houses?) and how they spend their leisure time. It also includes wellness, overall individual health, how they consume (on-line versus malls) and what they do for leisure.

And the business that I run has rapidly led the way in development of the industries that support both the lives of the baby boomers and more recent generations. It is up to us to have a vision and to know where American lives are headed. Much as our founder, George Henkle did.

The 35-mile region he addressed as a “super city” in the 1970s is rapidly approaching reality. The area’s cities have expanded their borders to include shopping centers, dining options, hospitals, entertainment centers with apartments near-by, and growing residential communities.

As we move through 2018, I am often asked, “What is next and what does the longer term future hold?” We stay heavily involved with the Urban Land Institute (ULI) and their research (published in late 2017, Patrick Sisson, www.curbed.com) reviews generationally what cohorts will likely require in their home and work places. It is key that our industry remain flexible.

From where I sit, we rely on the masters at places such as ULI and on our own expertise. While none of us read tea leaves, those of us who have “gone the distance” have a good sense of what is next. We know for sure that our developments in the future will continue to be about providing a lifestyle experience that includes green space, clean bodies of water to enjoy leisure activities, viable health care organizations and living arrangements that span generations.

We also know that owning land in the most desirable areas will continue to give organizations such as ours, the competitive edge. Our focus will continue to be on what we have learned from history, the forever changing marketplace, combined with sound judgement and vision.

This article was featured on the Cincinnati Business Courier website.

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Breaking down the differences between commercial leases

Jackie Slaght : August 20, 2018 10:00 am : Industry News, News

Rob Blundred
Commercial Sales Associate
Henkle Schueler and Associates

Locating the perfect commercial space to house your business can be exciting. You begin envisioning the business living and growing in your new space. But before you can start moving in, you need to agree and sign a commercial lease.

Leases can be tricky, confusing and overwhelming. With help from research tools from 42 Floors, we’ve outlined several different types of commercial leases. The three most common are net lease, absolute triple net lease, and modified gross lease. Each comes with challenges and benefits.

Net lease

The benefit of a net lease is that the landlord can charge a lower base rent price. However, along with the base rent the tenant is responsible for an “additional rent fee” which covers the operations and maintenance of the property. These costs can cover real estate taxes, property insurance and common area maintenance (CAM) items. The CAM fees cover the landlord costs for janitorial services, property management fees, sewer, water, trash, landscaping, parking lot, fire sprinklers, and any shared area or service.

There are several types of net leases:

  • Single net lease (N lease). In this lease, the tenant pays base rent plus their pro rata share of the building’s property tax (meaning a portion of the total bill based on the proportion of total building space leased by the tenant). The landlord covers all other building expenses. The tenant also pays utilities and janitorial services.
  • Double net lease (NN lease). The tenant is responsible for base rent plus their pro-rata share of property taxes and property insurance. The landlord covers expenses for structural repairs and common area maintenance. The tenant once again is responsible for their own janitorial and utility expenses.
  • Triple net lease (NNN lease). This is the most popular type of net lease for commercial freestanding buildings and retail space. The tenant pays all or part of the three “nets” – property taxes, insurance, and CAMS – on top of a base monthly rent.

Absolute triple net lease

The absolute triple net lease is an extreme form of an NNN lease where the tenant absorbs all of the real estate risk and responsibility. The tenant is ultimately responsible for all building-related expenses and repairs, including roof and structure.

Modified gross lease

The appeal of a modified gross lease is the tenant has one set amount to pay each month. In a modified gross lease the base rent and “nets” (property taxes, insurance and CAMS) are all included in one lump sum payment; excluding utilities and janitorial services, which are typically covered by the tenant.

The benefit of a modified gross lease is their flexibility. They are generally an easier agreement to make between the landlord and tenant. The risk is if insurance, taxes or CAM increase or decrease the cost or savings is passed on to the landlord.

Net leases will always have a lower base rent rate. When comparing a net lease space to a modified gross lease space be certain you are calculating all your additional rent expenses so you can make an accurate comparison between the lease spaces.

Whether finding your first commercial space or moving a growing business into a new home, negotiating a lease can be challenging. The most important advice is to make sure to read through the commercial lease diligently and carefully. Include all your costs for a space (rent, additional rent, utilities, and trash). Market and area trends tend to keep similar spaces at comparable lease rates regardless of the lease type. With proper lease understanding you can move confidently into your new business home.

This article was featured on the Cincinnati Business Courier website.

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How the Realtor Code of Ethics protects both clients and industry professionals

Jackie Slaght : August 16, 2018 10:00 am : Industry News, News

Brad Knapp
Broker
Henkle Schueler and Associates

As in other professions, real estate agents are sometimes looked upon with apprehension. Several years ago, I determined that it was up to us, as practitioners, to improve our reputation and ensure integrity through the REALTORS Code of Ethics. The Code of Ethics sets us apart from other professions and encourages cooperation between brokers and agents, which in turn benefits the consumer.

Initially, I became involved in ethics and professional standards thanks to Steve Casper, a long-time Cincinnati real estate professional, who appointed me chairperson of the Ohio REALTORS Professional Standards Committee, the year he served as association president, in 1988. Since that time, I have continued my involvement in professional standards at the local, state and national levels. In 2014 I was honored to serve as the National Association of REALTORS’ (NAR) professional standards chairperson.

I am proud of the fact that Ohio, way back in 1991, was one of the first states to require real estate licensees to attend a three-hour course on the Ohio Canons of Ethics under the Ohio revised code every three years without exception. As Realtors, a real estate professional who is also a member of a local Realtor association, we are also required to attend a course on the Code of Ethics every two years.  These classes are to ensure real estate professionals are maintaining and practicing the conduct and values established in our ethics and professional standards.

Our Realtors organization, which was founded in 1908, adopted basic rules of professional conduct in business affairs in 1913. Although changed and greatly expanded over the years, it still governs our conduct toward clients, the public and fellow real estate professionals.

While it might sound lofty, the preamble to the 17 articles of the Code of Ethics speaks volumes as to our duty, which includes something as basic as the golden rule.

“Under all is the land. Upon its wise utilization and widely allocated township depends upon the survival and growth of free institutions and of our civilization. REALTORS should recognize that the interest of the nation and its citizens require the highest and best use and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industry and farms, and the preservation of a healthful environment.”

The articles themselves (that support the preamble) address:

  • Representation of buyers, sellers, landlords and tenants.
  • How we must behave regarding honesty, integrity and cooperation with other brokers.
  • The articles explain how to avoid conflicts of interest, proper allocation of funds and receipt of compensation.

While the articles go into extensive detail, what it essentially addresses is trustworthy behavior. Also, our Code of Ethics contains the most extensive civil rights language regarding race, gender and sex discrimination. Our trade association has made great strides in this area, and that is something in which we can unite.

I am sometimes asked how to know if/when an individual or organization is working with the right agent or broker. It is simple, listen to your gut and ask around. Know that we, as an industry, police the behavior of our members.

Be comfortable with your agent and ensure that they explain real estate law and procedures upon the outset and that the Consumer Guide to Agency is presented and explained.

We are right now in a seller’s market. Inventory is very low and people are moving less frequently. I read in a recent article the average homeowner is living in their home 10 years, as opposed to six, the average just a few years ago. Many seniors and baby boomers are staying put, which says a lot about demographics. As they say “70 is the new 50.”

Often there are multiple offers placed on a property. This is the time for buyers, sellers and agents to be most vigilant. It is also the time for buyers and sellers to have in-depth strategy discussion with agents. We like to say that these times are about location, price and condition.

Due mainly to educational requirements and the cost to obtain and maintain a real estate license, I believe the quality of people now entering our business has much improved over the past few decades. Most importantly, Realtors understand the importance of self-policing through the Code of Ethics. I must also give a great deal of credit to the dedicated professionals who work for our various Realtor associations, such as the Cincinnati Area Board of REALTORS.

I work in a profession of which I am proud. I have been honored over the years to work with people locating their home, their new business location or a large industrial property. As humans, we make our most important decisions around both family and work. Place those important times with an agent you can trust.

This article was featured on the Cincinnati Business Courier website.

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