Stay Ahead of Rising Rents with the Right Real Estate Strategy

Higher sales prices, a rapidly strengthening job market, shrinking inventories of commercial space, and increasing costs for new construction are combining to send rents for commercial space skyward. Technology companies such as Apple, Google, and Yahoo are purchasing buildings, effectively taking them off the market. In addition, city planners have rezoned a significant share of obsolete commercial space for housing to accommodate the influx of new employees.

“The evidence is indisputable,” said Ralph Borelli. “The bottom for commercial real estate in the Valley was most likely reached in 2004 or early 2005. The rebound began in earnest last year, and this is fueling the rise in rents.”

With rent increases of up to 30 percent—especially common on incubator spaces of 5,000 feet or smaller–business owners need a strategy to cope. One way to control occupancy costs is to purchase a business condominium such as the units at Borelli’s Junction Office Center. READ THE FULL STORY

Avoiding the Pitfalls of Doing Your Own Property Management

Most property owners know there are a lot of time-consuming tasks that must be performed on commercial or retail properties. Space has to be leased. Rents have to be established and collected. Maintenance must be continually performed, and repairs need to be made quickly, when required.

You may think—how hard can this be? “Why should I pay people to collect rent checks, mow the lawn weekly, and occasionally fix a window or apply a little paint?”

As you may know, or will soon find out, successful property management isn’t that easy. To get the highest return from your valuable investment, you need a professional third-party property management firm such as Borelli Investment Company. With a half century of service, Borelli knows where the pitfalls lie, offers key advice that goes beyond simply checking off tasks on a list, and can steer you on the path toward increased profitability.READ THE FULL STORY

Announcing a New Syndicated Investment Opportunity

Borelli Investment Company plans to raise $5 million in equity capital to participate in a joint venture with KB Home to build quality townhomes in an excellent Sunnyvale location. With Silicon Valley’s housing market constrained by a scarcity of land and the challenge of meeting strict zoning requirements, Borelli estimates that demand for these units—which have already been approved—will be high.

Interested individuals will be able to invest in $100,000 shares, with a projected annual return of 12 percent over the expected 18 to 24 month holding period for the BIC-015 fund. READ THE FULL STORY

Limited Time Purchase Promotions at Junction Office Center

Borelli Investment Company is putting you in the driver’s seat with your choice of money-saving purchase promotions for high-quality office condominiums at Junction Office Center in North San Jose’s Golden Triangle. Right now you can choose our popular 4.99% interest rate buy-down, conserve your business capital with our three-year deferred down payment program, or enjoy the flexibility of our lease-to-own program. Don’t wait—this promotion won’t last forever, and neither will the office condos…more than half are already sold! LEARN MORE

Staff Spotlight: Lee Jatta

Who takes care of the properties in Borelli’s four million square foot portfolio worth approximately $500 million that it manages for third-party clients and its own syndicated investments? Dedicated property managers like Lee Jatta. Lee’s decade of experience and commitment to tenants and owners is what makes Borelli Investment Company an excellent choice for small to medium-sized property owners in Silicon Valley. READ THE FULL STORY

COMMERCIAL REAL ESTATE INSIDER is published periodically by Borelli Investment Company. For more information about Borelli’s services, visit www.borelli-inv.com, or e-mail info@borelli-inv.com. If you’d like to add an individual or business to our electronic distribution list for this and future issues of the Insider, CLICK HERE.
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