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ESTATE EXPERT

03 Nashville Commercial Real Estate 2nd Quarter 2013 ElizabethGatlin.com

NASHVILLE MARKET TRENDS

HOT NEW RESTAURANTS

NEGOTIATION TACTICS

2013 1st Quarter Report including everything from Lease Rates to Recent Sales.

How hard is it to really open a restaurant in Nashville? You might just be surprised.

Check out the negotiation tactics used by the top pros in commercial real estate.

You Pay What to Lease That Space? Shocking Lease Rates around town and what they tell you about Nashville’s booming commercial sector.

PHOTO: ELIZABETH GATLIN

PLUS Pre-market leasing: How to get a great deal before it hits the market.

Chas. Hawkins Co., Inc. CORFAC International


ESTATE EXPERT

CONTENT 6 NEGOTIATION TACTICS

How to get your way... I mean 5 negotiation tactics used by real estate pros.

10 NASHVILLE MARKET TRENDS Nashville on the rise - 1st Quarter market report and what to expect for summer rates.

14 RECENT SALES

16 OPENING A RESTAURANT Read how restaurant owners wade through the process of getting their businesses off the ground.

See which properties are selling in your neck of the woods with recent property sales.

16 HOT NEW RESTAURANTS Opening a restaurant is hard enough but keeping the customers coming for more is something Nashville restaurateurs do best.

20 REAL ESTATE FEES Who pays who? And why you should want an exclusive agent in the first place.

24 EVENTS CALENDAR

Local events to enjoy with family and friends this season.

25 PRE-MARKET LEASING Having an eye and an ear in the market could get you a deal before it becomes available to the public.

26 PRIVATE COOKING CLASSES

24 FREE SUMMER FUN

“One of the best things I’ve done this year.” An insiders look at cooking classes with Panache’.

28 TAKE THE LEAP TODAY Meet your new real estate expert, Elizabeth Gatlin, and learn how she can help you today.

Arrington Vineyards: fun for the whole family. Great views, food, wine and music await in the countryside.

ESTATE EXPERT No. 03 · May 2013 · Year 2 · EDITOR Elizabeth Gatlin CREDITS Images are taken from various sources. Noted where aplicable. CONTENT Written by Elizabeth Gatlin unless otherwise noted SIGN UP visit Elizabethgatlin.com for more information DISCLAIMER Chas. Hawkins Co., Inc. makes no representation or warranty, expressed of implied, to the accuracy of the information contained in this publication, and it is subject to errors, omissions, changes, withdrawal from the market, and other modifications without notice. No guarantees are made to the accuracy of the articles or implied information.

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CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT EDITORIAL

HI, Welcome to Estate Expert - A quarterly report geared towards Nashville’s leading commercial real estate decision makers.

H

ow can I help you? As a commercial real estate expert in the Nashville market, it is my full time job to act as an advocate for my clients and to help them reach the best possible outcomes concerning their real estate goals. So what does that really look like?

the Nashville market, I am better prepared to manage your real estate goals with success.

PEOPLE NEED PEOPLE AND DATA TOO

Many people may not think they are interested in commercial real estate because they do not own or lease commercial property. However, I guarantee most will find benefit with knowing data surrounding commercial real estate activities. What is going in down the street? How can I better prepare a budget for my long time dream of opening a cupcake shop? What type of space will make my employees more productive? I can help you today by happily providing you with all of the information to these questions and more. Call me today! I promise to give you the best of both worlds.

The hard truth: You want a friend and a confidant when you begin thinking about decisions concerning your real estate portfolio - someone you can really trust. And I love being that person for my clients. However, you also want to make the best decisions concerning your real estate investments and to do that you need the most up to date data. I provide the greatest value to my clients by giving them access and insight to all of the latest relevant market data in the industry. With a thorough understanding of both you and

“Don’t you want someone who understands both your needs and the real estate market?” SO HOW CAN I HELP YOU TODAY?

Elizabeth Jewell Gatlin - Vice President, Brokerage Chas. Hawkins Co., Inc. / CORFAC International

CONTACT: Email: egatlin@chco.com Cell: 615-429-3382 Website: ElizabethGatlin.com

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LOCAL FLAIR

ESTATE EXPERT

The Grilled Cheeserie The Grilled Cheeserie was one of the first food trucks that popped up over in East Nashville. A tasty late night snack.

The Bang Candy Company The marshmallow treats from this truck are simply delightful. Who doesn’t love petitfours?

FOOD TRUCK CRAZE There are over 47 food truck companies in Nashville and the trend continues to grow. Check out the NFTA calendar App to see where they frequent and grab your next meal. NASHVILLE FOOD TRUCK ASSOCIATION A group dedicated to the success and health of Nashville food trucks and their customers.

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SUM YUM YUM Food trucks come in all flavors and sizes such as Sum Yum Yum which specializes in Asian subs.


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT EXPERT AREA

3 MILE RADIUS What happens if you focus your real estate investments on one of the biggest boom cities in the nation? Real Estate portfolio success.

EXPERT AREA Estate Expert focuses solely on happenings in the Metro Nashville area.

CORRIDORS Nashville Real Estate - 12 Major Corridors, 50 miles of Opportunity. CORRIDOR CONNECTIONS 1. 2. 3.

Woodland, Main and Gallatin Hermitage and Lebanon Lafeyette and Murfreesboro Pk.

4. 5. 6. 7. 8.

2nd, 4th and Nolensville 8th and Franklin Pike 12th Avenue South Division and Demonbeun Broadway and

WHY NASHVILLE? Nashville real estate is beautiful. It is historic and varied. After all, there is a deep heritage here that other places do not have and the people really want to be here. Nashville-located companies care and give back. All of these things make our clients the

best people to work with. We understand Nashville and how the urban landscape continues to change and grow. We also understand the opportunities available to companies interested in metro real estate just beyond the downtown core and still connected to it all.

21st Church and West End 10. Charlotte Avenue 11. Jefferson and Rosa Parks 12. 1st and Dickerson 9.

GO INFILL REDEVELOPMENT is one of the greatest real estate opportunities for growing cities such as Nashville. There are plenty of available parcels ready to be filled by valuable local businesses.

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YODA - STAR WARS TRILOGY Image: Bobbybobber on the Deadliest Warrior Wiki


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT NEGOTIATION TACTICS TEXT ELIZABETH GATLIN PHOTOS VARIED ONLINE SOURCES

NEGOTIATION TACTICS USED BY THE “You catch more flies with honey than you catch with vinegar” says the wise man sitting quietly in the corner. Actually, that is just something I picture happening when people start to get irritated during tense negotiations. (And honestly the wise man really looks more like a smiling Yoda than a wise man…) During negotiations, arguments, life really, this couldn’t be more true. I recently attended a professional development seminar presented by SIOR (Society of Industrial and Office Realtors) and learned about developing a better understanding and larger tool box of Negotiation Skills. William Burgess, SIOR, CCIM was a powerful presenter with a great interactive approach. I was thrilled to attend and walked away with some interesting and some surprisingly counter-intuitive insights from the negotiating expert.

MAKE IT EASY FOR THEM TO SAY YES One of the best ways to get what you want is to make it easy for the other party to say “Yes”. Now think on that one for a moment…. Do you like puppies? Yes. Do you like vacations? Yes. Do you love your kids? Yes.

PROS

Do you like it when people smile? Yes. Do you want to sell your property? Yes. Will you take 50% lower than asking price? Yes. …Hey, Wait a second! “Yes” is actually contagious. Start saying yes and it is hard to stop. Starting negotiations with yes is a powerful way to get things off to a great start. Do you want to try and negotiate with an angry boar or a friendly child? Starting with easy agreeable points helps make everyone more amicable and enthusiastic. Bumps in the road seem more readily overcome when people have been saying yes from the start. If you are selling your property, know your absolutes and then say yes to everything else. If you are buying or leasing, start with a fresh and friendly non threatening approach (RFP or LOI) and make it easy for the owner to say yes. Everyone wins in a negotiation when “Yes” is the first and final answer.

want to. He also followed with no nonsense wisdom about the best negotiation tactics allow both parties to WIN. Ummm, really? Yes. Negotiations can ultimately have four outcomes: 1. I Win and You Lose: I only win once. 2. You Win, I Lose: You only win once. 3. We both Win: We both win many times. 4. We both lose: Goodbye negotiations AND relationship. There is a big difference between Playing to win vs. Playing not to lose. Reframing your own

BELOW Smiling during negotiations puts the other party at ease, making them more apt to agree. Image: Values.com

RISING TIDES RAISE ALL BOATS One of the first points that Bill made was that Negotiations are Voluntary. You can’t negotiate with someone that doesn’t

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NEGOTIATION TACTICS

goals in a negotiation from negative to positive will also have a positive effect for all parties making it easier for people to actually succeed in getting their needs met. After all does it really matter if the other guy gets his way if you also get yours? Bill actually encourages everyone to always “leave money for the next guy” and now I understand why.

KNOWLEDGE IS CRITICAL TO AN EFFECTIVE NEGOTIATOR Alright enough with all the happy sappy stuff about everybody holding hands. Negotiations can and often equate to WAR. Having adequate knowledge in any situation is necessary to getting you to the top. Many times when an owner or tenant without

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ESTATE EXPERT

ABOVE All skilled warriors practice their knowledge and tactics prior to battle. Image: The Last Samurai

market knowledge try to go it alone they get completely annihilated because they do not have the basis of an effective negotiation strategy. And they wonder why. (Don’t want this to happen to you? Just contact me!) Trained commercial real estate agents are extremely skilled negotiators equipped with both market knowledge and experience. Think of a Samurai. (Yes, I am about to compare myself to a Samurai) They spend enumerable hours prepping for battle: day in and day out. They research their opponents. They understand their strengths and weaknesses. They use body language and experience to predict the other side’s actions. They are cunning and precise. Without knowledge their skill would only get them

so far. Actually in this Deadliest Warrior Episode of Samurai vs. Viking – when calculating who would win in battle, Samurai won not because they had superior weapons but because of the Samurai’s additional knowledge and training. If you have ever played a strategy game such as Risk, you know the importance of knowledge. So before going into any battle, or negotiation, prepare with as much knowledge of the situation, the forces, the players, and the reasons as possible. Which leads me to Key 4.

ASK AND REPEAT Asking questions is critical to understanding and overcoming obstacles during negotiations. It also sheds light on motivating


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT NEGOTIATION TACTICS your time frame? What are your limits? How much space are you looking for? Why did he rub you the wrong way? What motivates you? Repeating the given answers back to the person will ensure you are both on the same track moving forward. After all, negotiations are about problem solving an agreement that has two sides of specific desired outcomes. Can you really know how to best solve a problem without first asking what it is? Skilled negotiators often overcome obstacles by asking key questions that then lead them to use applicable persuasion tactics that will motivate the other party to take action. If you continue to hit road blocks start asking questions and you will more than likely get to the root of the problem and find a way to overcome it or a way to walk away knowing why.

factors for both sides. Ironically most people don’t usually know the answers to many questions you might ask. This can have a couple of outcomes, one giving you the upper hand during negotiations or the opposite- simply getting the other party irritated and defensive. Either way asking key questions on your side prior will help you prepare your team for firm, clear and concise reasoning when you are under fire during a negotiation. Who, What, When, How and Why: Why do you want to sell your property? Why do you need to make above market rates on it? What do you really want? What do you really need? How do you run your business? Who is your competition? How does your plan look 5 years from now? What is

POWER IS PERCEPTION Is it still considered manipulation if you tell the other person you are manipulating them? Ultimately you can have four types of Authority: • Perceived Authority • Imagined Authority • True Authority • Or, No Authority Since each negotiation scenario has different decision makers and personalities, understanding the true power dynamics of a group is critical for success. Who is really making the decision? The CEO or the lady sitting quietly next to him? Do certain people have insecurities or overcompensating egos? Know the best place to be in the situation and accept it. After all nothing should be taken personally and having an eagle’s eye perspective is a great advantage.

Asking questions is critical to understanding and overcoming obstacles during negotiations.

RIGHT The Godfather used the best power play negotiation tactics. Image: The Godfather

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MARKET TRENDS

ESTATE EXPERT

NASHVILLE MARKET TRENDS 1st Quarter Market Report 2013 The Nashville real estate market has picked up 1st Quarter of 2013 with smaller numbers of available space in both the office and industrial sectors. Prices are also on the rise with rising demands and fewer numbers of available space.

R

ecently upon hearing a tenant’s past year’s rent payments at work I found myself literally having to pick my mouth off the floor. Apparently some poor undisclosed business owner was paying a whopping $80/ SF for retail space at the Green Hills Mall. Which, just to put it in perspective equals about $6,666/month for a 1,000 sf store. Now before you go saying “That doesn’t sound too bad…it is after all Green Hills” understand that these rates are almost 2x the highest rents in all of Nashville. Class A Office asking rates in downtown last quarter were a mere $28.50/SF and the Median

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Retail space lease rates were in the $15/SF range topping out at $38/SF NNN. You could get brand new hipster-ific high class retail space in the Gulch for half the price! Needless to say she has recently moved her upscale boutique to greener pastures in East Nashville and many others are following suit. Want to know exactly how your business’s lease rates stack up? Just keep reading for all the gorey or glorifying details.

WHAT ARE THE AVERAGE ASKING LEASE RATES IN NASHVILLE? To start, the rates I am talking about are typical urban area

rental rates. (Think relative traffic) This includes anywhere within the I-440 / Briley Loop. And places like Mt. Juliet, Rivergate, Brentwood, Berry Hill and Cool Springs etc. After reviewing these you might need to rethink your budget or update your search strategy. If any of these surprise or bother you, call me. We can discuss all the pros and cons of your current situation and how to maximize the benefits of leasing. I am a bargain shopper and believe your real estate should give you back more than you put in no matter if you own or lease your space.

XCELIGENT, INC. The above charts and data have been compiled from “1Q 2013 Market Trends” by Xceligent, Inc. All Rights reserved.


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT MARKET TRENDS TEXT ELIZABETH GATLIN XCELIGENT, INC. PHOTO GOOGLE MAPS

MARKET SECTORS TO LOOK OUT FOR

OFFICE

RETAIL

INDUSTRIAL

Vacancy rates are continuing to decline, dropping 3 whole basis points below the vacancy rate from 1st Qtr 2012. This is largely due to strong leasing activity in class B buildings, which have posted nearly 200k SF of absorption.

Vacancy rates are starting to increase, however still hovering below the 6% mark. The Bellevue market took the biggest hit, with vacancy rates increasing to 5.19% from 1.88% at year-end 2012.

Vacancy rates are continuing to decrease down to 8.7% from 11.7% in the 1st quarter 2012. Meanwhile, overall rental rates have had a steady increase over the past year, up to $5.50/SF this quarter compared to $5.24 a year ago.

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LEASE RATES

ESTATE EXPERT

YOU PAY WHAT? OFFICE RATES You will most likely be seeing office space leased at

$18 – $22/sf. Downtown office towers and the such that include higher quality finishes and amenities like security and parking will lease all the way up in the $28/sf range. This is classified as “Class A” office space. In an older building with poorly updated finishes, “Class C” – you will be looking at the $9-$12 range. (Think paneled walls and sagging ceilings) Your most typical office will be “Class B” which can run all the way between $11 – 28/sf with an average asking price of $18/sf. Don’t need the bells and whistles? Within the I-440 loop you will be hard pressed to find anything under the $12/sf price.

OFFICE LEASE RATES

RETAILEASE RATES

RETAIL RATES Retail lease rates are varied and can be more expensive than office lease rates because there is simply less space available. Since most Retail leases are on the ground floor with public access the pricing is higher even when the conditions look drab. Nashville is experiencing an increase in asking lease rates in the mid $20’s. If you are looking for office with retail conditions then you will be looking in the same range. Places like Greenhills and Brentwood have higher lease rates topping out at $38/sf for a conventional strip center. The average asking rates are between $14.75 – $16.72 NNN (Triple Net) but you can expect more if looking in the city. Add on the extra pass throughs – taxes, insurance, and CAM (Common Area Maintenance) and you could find yourself paying quite a bit for that next new retail venture. Or you might like to see these numbers coming into your pocket every month. If that is the case then get in touch with me ASAP. I might have the perfect tenant looking for just your space.

INDUSTRIAL RATES

INDUSTRIAL LEASE RATES 12

Industrial lease rates are considerably lower than office and retail. They are used differently even when they are positioned to serve flex style users ie. need some office and warehouse. Bulk Warehouse rates are in the $3/sf range while Distribution Centers can go up to $12/sf. If you want to turn that warehouse into something trendy, then you will most likely experience $7/sf rates but with owners and adjacent tenants that might not be thrilled with your concept. Just need an industrial lease? Our company has many industrial specialists to help find that perfect 13’ clear height, single drive in, five dock door, fully sprinklered large available trailer park warehouse space. The average asking lease rates are between $3 – $7/sf NNN.


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT LEASE RATES

HOW MUCH SHOULD YOU BUDGET?

Best business practices tell us you should budget between 10% and 15% of your operating expenses for your monthly rent payment.

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SALES COMPS

ESTATE EXPERT

Construction in the Gulch Photo: Elizabeth Gatlin

RECENT

SALES IN TOWN

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CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT SALES COMPS

265 HERMITAGE AVE.

301 14TH AVENUE N.

600 LAFAYETTE

1107 17TH AVENUE S.

1,560 SF - General Retail SOLD April 2013 $130,000

6,390 SF - General Office SOLD February 2013 $815,000

1,364 SF - General Retail SOLD March 2013 $165,000

4,524 SF - General Office SOLD February 2013 $675,000

1922 BROADWAY

2603 FRANKLIN PIKE

FEDERAL RESERVE

2504 FRANKLIN PIKE

5,589 SF - Freestanding Flex SOLD March 2013 $1,100,000

13,098 SF - Convenience Strip SOLD Feburary 2013 $1,850,000

75,000 SF - Special Purpose SOLD April 2013 $$4,500,000

2,918 SF - General Office SOLD April 2013 $350,000

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RESTAURANT MADNESS Opening a successful restaurant is one of the hardest business ventures to tackle especially considering the high risks and low pay offs of the food and beverage industry. So why does Nashville have so many wonderful places to eat (and growing)? 16

Other than our native delicious southern flavors, the process is not as easy as you might think, and it is expensive. So go ahead and support your local economy and favorite bakers and chefs; eat out tonight because they have earned it!

STEPS TO OPENING A RESTAURANT STEP 1: SAVE, SAVE, SAVE: It is hard to get a restaurant business Loan. Restaurant owners have to start saving well in advance of dreaming up their first


CALL ELIZABETH TODAY! 615-429-3382 ESTATE EXPERT DEVELOPERS CORNER TEXT ELIZABETH GATLIN PHOTOS VARIED ONLINE MEDIA

LEFT The Pharmacy beer garden. Renowned for their delicious shakes and burgers. Image- katyfriends. blogspot.com/

kitchen equipment and hood. This number does not include any swanky decor and lighting. Did you know: You usually only see 50% of a typical restaurant? The kitchen, bathrooms, storage coolers, and other service spaces take up roughly half the size of the total rented area.

STEP 2: START LOOKING AKA “WAITING” FOR THE PERFECT SPACE

new place. Restaurant equipment costs a lot! $50,000 is the average expected cost for installing a full service kitchen. And that is just for the

BELOW The only available existing Restaurant listings in Nashville.

Restaurant space is hard to come by. Currently (April 2013) in all of Davidson County there are only 16 available leases being marketed as “restaurant space”. And they average about $20/sf asking lease rates before build out. The available space might not even be where you had hoped to open your next restaurant. Patience is the name of the game if you are a restauranteer: save and wait, look and wait. Once you have found that perfect space, and negotiated the best possible lease terms without getting had, it is time to wade through the wonderful legal process. Let me help you get the ball rolling by keeping an eye out on available space for you. Then when you are really ready it is quick and easy to snag the space you want because we have prepared in advance of need.

STEP 3: ZONING, CODES AND NEIGHBORHOOD HEARINGS

You of course first need to get a business license with the Davidson County Clerk’s office. Then you need to confirm and verify the space you intend to lease or purchase has the suitable zoning. Just because the selling agent says it does, doesn’t mean you shouldn’t double check. Then you need to apply and pull construction permits. (Submit your architecture drawings showing how all your kitchen equipment is going to meet code regulations…) and right before you pull your hair out you need to make sure that the grease trap, sprinkler system, your toilet rooms, parking and vegetation ratios are all up to the applicable codes. I know a great Architecture firm to help with your next restaurant project: Design and Engineering, Inc. Then put on your happy face and ask the crazy neighborhood snoop and all the rest of your neighborhood association for permission… ummm, I mean support, so that they don’t show up in droves to object when you go through the planning department’s application process. It might be tough but in the end if you play your cards right, you will not only have your restaurant plans approved, but you might also have a lot of people excited about becoming patrons. Lockeland Table, Community Kitchen and Bar did the entire process wonderfully (including presenting to the neighborhood with excitement and pride) and is now a beloved neighborhood

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THE THISTLE SHOP Located on Charlotte, this special tea room focuses on healing and rehabilitation of women who have survived prostitution, trafficking and addiction.

GLAZED A new donut shop serving drive by coffee and donuts opening in May at 5th and Main.

NEW EATS IN NASHVILLE

EDLEY’S East Nashville’s newest BBQ joint. Snatched up space in the up and coming Fluffo Development.

A quick list of some of the newest restaurant’s in town. Go grab a bite to eat and enjoy a variety of culinary treats.

MUSIC CITY FLATS STONEOVEN & BAR Flat breads, appatizers, and beer - the best of all worlds. Located on 12th Avenue South

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THE URBAN JUICER You may have seen this new beverage themed restaurant travelling down 8th. Be sure to grab a quick and healthy “Fruschie” on your next drive by.

PUB5 ON BROADWAY A transformed 3 story eatery, this restaurant boasts great food, entertainment, and people watching.


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT DEVELOPERS CORNER thing extra other than an OPEN Sign. You can do better if you aren’t too busy running your brand spankin’ new business. Reach out to local papers and newsletters. And don’t even think about not posting all the glorious Instagram, Pinterest, Facebook and Twitter pics on your restaurant’s Social Media handles. If you really want press tell your story from the get go before you ever even open your doors.

treasure.

STEP 4: RESTAURANT MARKETING AND MAINTENANCE Other than making perfectly delicious and fresh food non stop, now to have a successful restaurant you have a lot of marketing to do. It isn’t easy for restaurants to get national press and some open without any-

ABOVE Lockeland Table’s proposed patio. Image: Gilbert Mclaughlin Casella Architects

In the mean time, make sure you are doing your due dilengence with maintaining your building properly. Poor decor, not following codes or worse; being on the Food Inspection Score Hit List can not only kill your marketing initiatives but kill your business. Oh, and don’t forget: one of the main reasons people stop going to a restaurant is poor service. I like Brandon O’Dell’s article on the biggest mistakes restaurant owners make that cause them to fail.

Now before you start saying, “Liz, we know you just wrote this entire article to justify your eating out habits…” Check out this recent data I heard on the radio this morning riding to work in “Benny G”. It might just be cheaper to eat out and better for the local economy than eating in shows a recent study by GoBankingRates.com. It found that with the rising prices of groceries in some cases it can be cheaper to actually eat out rather than to buy the same food in the store and make it yourself. Think at home steak and seafood compared to Outback and Olive Garden… Not the best for you, but cheaper… So you want to save money, support your local economy, get fat, try something new, or have a fun date night. Great! Eat out and show all the restaurant owners in Nashville some love for their hard work. Tell them I sent you and thank them for keeping Nashville a destination for delicious eating. LEFT Edley’s southern BBQ in East Nashville. Image: Jonathan Gatlin

$50,000 = The average price of restaurant kitchen equipment.

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CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT GETTING PAID IN REAL ESTATE TEXT ELIZABETH GATLIN PHOTOS ONLINE MEME GENERATOR

GETTING PAID IN REAL ESTATE Who pays who when it comes to commercial real estate? An insider’s look on how the process works from start to finish. “One of the hardest parts about any business is getting paid for the services you render.” – says my real estate manager smiling after testing my gumption to see if I would actually ask him for payment of a previously negotiated fee. After all, who really likes having to ask someone for money, even when it has been rightfully earned? I sure don’t. So how do you get paid in commercial real estate, you ask? And who pays who and for what exactly? Let me explain…

REAL ESTATE CONTRACTS FOR PAYMENT AKA EXCLUSIVE LISTING AGREEMENTS LEFT Success Kid Meme

BELOW Sad Cat Meme.

In our business there inherently comes a significant amount of risk as we work day in and day out servicing our target markets – in my case the property and business owners, the users, the investors and the communities in my home city, Nashville, TN. Real

estate agents get paid at the end of a deal, not at the beginning so sometimes people try to pull a fast one on us. “They don’t call it Broker-age for nothing!” says a fellow colleague laughing. Ultimately contracts are every business owner’s best friend when it comes to mitigating this type of risk. In commercial real estate I will not and cannot (company policy) work on a listing to sell or lease your property without a written contract known as an Exclusive Listing Agreement. It protects me from working long and hard for someone who is not serious about paying for my services. Even prior to signing contracts and planning the specifics of a sales strategy I have usually spent numerous hours with a potential client getting to understand them, their goals and real estate needs. A written agreement simply means I know they are as committed to success as I am. If you are a commitment-phobe, stop worrying. Signing an exclusive listing just means you want to sell or lease your property with a specific agent (hopefully me). Prices, timing, etc. can change as needed after we have an agreement. Plus if you don’t like your agent later down the line you can fire them. You risk nothing except paying their commission if they deliver. (And you should have probably already included that in the listing price so there is no skin off your back…) Sounds like a low risk, win/win for the owner.

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GETTING PAID IN REAL ESTATE

And literally no risk for a tenant who wants help looking for property.

A PERSONAL TRAINER FOR YOUR REAL ESTATE PORTFOLIO But contracts don’t pay you, people do. Often I look at our business like hiring a personal trainer, just for your real estate portfolio instead of your body. Much of the time I am operating

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ESTATE EXPERT

ABOVE Old Spice Guy Meme.

on faith that my clients will do what they set out to do. After all, how many people do you know that have kept their new year’s resolutions this year? This year’s statistic is that only 8% of people keep their resolutions! Yikes! That could equate to a lot of people not getting paid. But if you hire a personal trainer to help you lose that extra 10-20 lbs, you are more likely to succeed because of the accountability factor.

I make sure you sell, purchase, or lease your commercial property at the best possible terms for your needs. You want to make money but you don’t want to sell? We can put together a plan for that. You want to lease instead of purchase? I can help you find that perfect space. And just with personal training you may know what you want to look like, you might not have the big picture of what it will actually take to get there. It is important


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT GETTING PAID IN REAL ESTATE to have an advocate on board equipped with strategies for getting you where you want to be with your real estate portfolio. But wait, personal trainers are for sissy’s right? I can lose the weight (sell or lease the property) myself. Maybe, but having someone help is definitely worth the payoff.

Ultimately contracts are every business owner’s best friend when it comes to mitigating risk and insuring they will get paid.

ADDING TANGIBLE VALUE IN REAL ESTATE SALES

in having their investments pay off.

Selling or Leasing your commercial real estate is my full time job. If you have the right real estate agent and the right plan then you could be making big money on your commercial asset. I help my clients sell and lease their properties at a higher value than they could going it alone. Interested in knowing what your property could be bringing you? Call me for a free property evaluation and find out. In addition to the value I bring to my clients by saving them time, which also equals big money, I am constantly available as an advocate and knowledgeable resource. Find yourself overwhelmed with options? I can help you to formulate a comprehensive investment strategy and offer rational objective insight to how you can maximize your efforts. (Such as in those times when “too good to pass up” or “our property is worth a bazillion dollars” feelings start to creep in.)

BELOW 1st World Problems Meme.

Through my Tenant Representation Program on average I have saved my tenants $3.23/sf over the term of their Nashville area Leases. For the average small size tenant that equals about $5,000+ in savings over a 3 year lease. (I don’t make that much in commission!) and for larger tenants that could equal a significant amount more. Why wouldn’t you want to save that kind of money, or in the case of sales make that much more on your asset?

***If you love my digi-made real estate memes and want to see more of these funny characters online, just visit troll.me or MemeGenerator.net. My all time favorite meme is “Success kid”. If you want to know more about how I can help you with your commercial real estate needs or have questions please simply Contact Me Today.

My commission is usually paid by the owner of a property who gains the most from my expertise; income from a tenant, a buyer, well documented portfolio assets and more. My background in architecture, digital marketing and an international network of investors all equate to valuable opportunities for those interested

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EVENTS CALENDAR

HOW IS YOUR CAT WALK? Join Nashville designers in this big city event that makes even the paparazzi drool. Nashville Fashion week is a fun celebration of all things fashion - shoes,

ESTATE EXPERT

international designers, cat walks, purses, accessories, you name it. Many of the events during the week are free and a ton of fun, even if you are not into the fashion scene.

Feel like you got dropped into a magazine shoot (oh wait you did) and get a feel for all the creative talent Nashville has to offer during the week of April 2nd - 6th.

CMA FEST Watch out country music fans. CMA is getting bigger and better every year. GET YOUR TICKETS FOR THIS SUMMER MUSIC FESTIVAL

ARRINGTON VINEYARDS OPEN ALL SPRING AND SUMMER If you haven’t taken a trip out to Arrington Vineyards

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yet, get out and go! Nestled in the rolling hills of Williamson County is a beautiful vineyard with

delicious wine. Free tastings are available to the 21 and up crowd, as well as live music for all ages.

This years Country Music CMA Festival is going to rock! Slated for mid summer, June 6-9, the line up for this CMA Festival is larger than ever. With all the big names and even more artists than usual, the CMA Festival is sure to bring

crowds to Nashville and make us all proud to be Music City residents. Go ahead and mark your calendars for this event, because with the large crowds you may just want to take off work and go see some music. The people watching and star spotting is always my favorite highlight of CMA fest.


CALLELIZABETH ELIZABETHGATLIN GATLINTODAY! TODAY!615-429-3382 615-429-3382 CALL ESTATE EXPERT RECENT DEALS

PRE-MARKET LEASING Sometimes you just get lucky. And boy do I love it when I my clients get lucky.

M

y client, BNA Technology Solutions had been looking for office space in the Berry Hill area for some time. Having struck out on different possibilities they called to let me know they had decided to lease some extra space at a friend’s office. Too bad for me, but I couldn’t exactly blame them. However, just when I had cut my losses, I received a phone call that the search was back on.

ing for space, we send out a mass email to other brokers in the area who might have a listing that fits their described needs. We hadn’t had much response for this particular request and had been to many different buildings that were not ideal. They needed both office and open warehouse type space. When I asked my colleague if he knew of anything in the area he mentioned a gentleman who had just purchased a building off of Eugenia that might be looking to have it leased.

When working with clients look-

After contacting the owner he

ABOVE: I was able to get my client over $15,000 in Lease incentives at a property that wasn’t even on the market.

indeed did have available space that he was hoping to lease. He was also in the process of renovating the building which made it that much more appealing to BNA Technology. The available space was just the right size and location. Plus they were able to have multiple changes made to the unit with little out of pocket cost because the owner was so enthusiastic about improving his new investment. BNA Technology solutions ended up gaining over $15,000 in rent incentives over the term of their 3 year lease. This included new paint, blinds, carpet, ceiling tiles, countertops and cabinets in the kitchenette area, as well as free rent – all provided by their new landlord. Jim Stafford, officially gets the “Landlord of the Year Award” with this display of generosity. He was going to be renovating the space either way so I was able to use this knowledge for my client’s benefit. It sure does pay to ask!

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PRIVATE COOKING CLASSES ESTATE EXPERT

LEFT: Fresh ingredients all provided by Panache’. We just brought some wine and had a blast.

PRIVATE COOKING CLASSES WITH PANACHE’ The best experience of my year so far! Check out this hidden Nashville treat next time you are in the mood to do something different and exciting.

I

recently hosted a Bachelorette Party for my sister and happened upon a stroke of genius while trying to plan an alternative to the typical rowdy girl’s night out. Just so you all know, I am not the best cook. I mean, I literally have to look up how to boil an egg every single time I do and still mess it up. Pitiful, I know… my poor poor husband. So when my dear friend Darryl Dinning from Panache’ Catering told me he could offer me and the lovely ladies a special private cooking class, I was elated. Hands down this was probably the most unique and entertaining event I have

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been to in years, and I was even put in charge of the soft shell crabs, terrifying.

PROFESSIONAL DEMONSTRATION KITCHENS We entered the back of the building into a magnificent kitchen. Stainless steel everything. Part of why I think I have not picked up the cooking bug is because of my kitchen at home. Read more about how your house is making you fat here. Panache’s kitchen on the other hand was perfectly laid out, large, clean and had plenty of prep space. The

seven of us divided up into tables and after some quick instructions picked which portion of our meal we were going to prepare. All of the equipment, sinks, and stoves were pushed to the perimeter with tables in the middle. This is a great way to set up a kitchen as you can prep in the middle and simply turn around to get the food where you need it. Work triangle anyone?

LADIES NIGHT OUT MUST HAVE: CUTE COOKING ATTIRE Because I don’t have much to offer


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT PRIVATE COOKING CLASSES authentic dishes and create Thai pastes and master the challenge of cooking soft shell crab, Soup with Fresh Thai salad on the side and Spicy Beef Dish.” After everything was prepared we enjoyed a relaxing and intimate dinner family style at a beautifully set table. The entire evening was glorious. If you are looking for a quality cooking class with local flair, Panache’ Catering really does provide an experience to remember. I would have never known they offered this type of thing if I hadn’t have asked. Lucky me! A special thank you to Darryl Dinning and his wife for a wonderful evening that we will never forget. It was such a special treat.

CONTACT DARRYL TO SCHEDULE YOUR NEXT PRIVATE COOKING EVENT: WWW.PANACHECATERING.BIZ LEFT: My sister-in-law with her chef’s hat on, schooling me in food preparation. BELOW: Getting ready for a full night of culinary art.

in the form of actual culinary arts, I decided long ago if I am cooking, I might as well look good. Aprons are therefore a must and should be a requirement in any kitchen. Plus, no one really buys aprons often so they make great gifts. I bought all the ladies in our group aprons as party favors and let them pick the ones they wanted to take and keep for their kitchens. Most of the guests were from out of town so I hoped they could bring a little bit of Nashville back with them. Darryl provided the hats, sharp knives and we all felt like cooking professionals.

healthy and fresh dinner. The menu was themed “Thai Food” and everyone was excited to learn how to add a little extra flavor and spice to our cooking repertoire. Darryl had an easy hands on approach and offered side by side assistance and instructions as needed. The other girls were pretty advanced so he did end up spending most of his time with me and the soft shell crabs. Soon we were all chopping and cooking and mixing away. He encouraged us to be creative with the provided recipes and adapt them as we saw fit.

THAI FOOD RECIPE DINER MENU QUALITY FOOD & QUALITY COOKING INSTRUCTION Laying out on the table in front of us were four stations to make a four course

“Expand your palate and learn the art of Thai cooking with Chef Darryl! This Thai Cooking class will send you on a culinary journey as you learn to cook

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ABOUT

ESTATE EXPERT

MEET

YOUR ESTATE EXPERT

Commercial Real Estate Professionals since 1962 Chas. Hawkins Co., Inc. / CORFAC International

S

ince 1962, the Chas. Hawkins Co., Inc. has provided stable, reliable and outstanding real estate services to the Nashville community.

Our current business statistics include: • •

• We are a dynamic, energetic, forward focused & skilled group of real estate professionals with a significant presence in the Middle Tennessee commercial real estate markets. Phone: 615-256-3189 776 Melrose Avenue Nashville, TN 37211

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• •

Leases with over 500 customers Annual transaction volume in excess of $100,000,000.00 Manage over 8,000,000 square feet of space Over 45 build to suit projects completed Over 34 speculative projects completed

Call or visit us today to learn more about how we can help you with your real estate needs.


CALL ELIZABETH GATLIN TODAY! 615-429-3382 ESTATE EXPERT ABOUT

ELIZABETH GATLIN MORE ABOUT ELIZABETH Elizabeth Gatlin is an architecture and property investment specialist focused on metro Nashville real estate. She works with clients interested in owning, selling, or leasing commercial real estate. Elizabeth is a born and raised Nashvillian graduating from Hume Fogg Academic Magnet. She was the Top Graduate from the College of Art and Architecture in 2009 and holds an Honors Bachelor’s degree in Architecture from the University of Tennessee, Knoxville. Elizabeth has been involved with both public and private initiatives that develop Nashville as a quality place to live and work. Her experience with companies and leaders developing the Middle Tennessee region gives her insight into the best deals in town. She lives with her husband in East Nashville’s Lockeland Springs neighborhood.

SERVICES: Mrs. Gatlin specializes in real estate transactions occurring in Nashville’s Central Business District, including North of the Capitol, Music Row, The Gulch, SoBro, Midtown, and the East Nashville submarkets. She provides the following comprehensive list of real estate services to her clients: • • • • •

Brokerage representation and facilitation for buyers and sellers of real property. Investment analysis for acquisition and disposition of real property assets. Portfolio management and consulting for companies seeking to gain strategic benefits from their owned or leased real estate portfolio. Development and market studies for investors seeking to enhance their portfolios. Architecture and built-to-suit / redevelopment consulting.

Since joining the Chas. Hawkins Co., Inc., Mrs. Gatlin has been involved in multiple transactions, including work with publically traded manufacturing, health services, and distribution companies. Recent clients include: Invacare Continuing Care State Farm Jimmy Johns Mundo Tax BNA Technology Cardinal Health Panache’ After Dark Float Nashville Massage Pad Thai Kitchen Design & Engineering Inc. Tennessee Awnings Nashville Improv Company Utopia Renovations Nedap Industries Nissan RGH Enterprises

Contact Elizabeth Today!

Cell: 615-429-3382 Egatlin@chco.com Chas. Hawkins Co., Inc. / CORFAC International 776 Melrose Avenue Nashville, TN 37211

I just want you to know that Elizabeth Gaitlin was perfect! One of the hardest working and dedicated agents! She has gone so far above and beyond for us. What a great person to have on your team! - Float Nashville Massage

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this publication, please contact Elizabeth directly at egatlin@ chco.com. To see all of CHCO’s real estate listings and to learn more about the company go to www.chashawkins.com


Estate Expert - 03  

Commercial Real Estate Magazine covering trends in Nashville, Tennessee.

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