News & Insights

6 Types of Commercial Construction Contracts You Must Know

There’s no doubt that commercial construction is big business. Despite the fact that construction suffered a worldwide correction in 2020 due to the COVID-19 pandemic, ReportLinker estimates that “global construction output will expand by 4.5% in 2021,” and Statista reported that the “construction industry grew to a spending value of close to 12 trillion U.S. dollars before the coronavirus pandemic.” But this doesn’t mean that the industry is without challenges. A 2015 report by KPMG discovered that more than two-thirds of owners blame contractors for underperforming construction projects and more than half had an underperforming project during the last year.

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Why Multi-Year Leases Are (Usually) a Bad Idea for Landlords

To many tenants, landlording seems like a risk-free way to basically print money, an investment approach with precious few downsides. How wrong that idea is! Veteran and neophyte landlords alike understand just how challenging and problematic a task it can become. Just consider the task of acquiring — and then retaining them. Some landlords swear that signing multi-year leases provides them with the best possible return, but does it really just open them up to more risk?

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Commercial Lease Buyout: 7 Things You Need to Consider

Whether you have a successful or struggling business, you may find yourself looking to get out of your lease. Your reasons may vary and include anything from needing a different space to requiring a geographical change, from struggling to meet your current rent to discovering that your landlord is more trouble than he or she is worth. In any case, when you’re wondering how to get out of a commercial lease, it pays to know your options — and one of the most important is a commercial lease buyout. 

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Implied Repair Covenants in Commercial Leasing

The United States traces its common-law heritage back over more than a millennia, and the statutes regulating real-estate transactions have changed substantially (to put it mildly). According to a study by Paula C. Murray that was published in the University of Richmond Law Review, “The tenant bore all the risk of the physical condition of the property — caveat lessee. The tenant could provide for landlord repairs in the lease, but could not withhold rent if the landlord failed to make those repairs. Additionally, the tenant assumed primary responsibility for the condition of the premises once he took possession of the property.”

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Commercial Property Management: Pros & Cons

While commercial property management can offer wonderful returns, the horror stories that surround it are enough to make your hair stand straight up off your scalp, turn white as the driven snow, and then fall out completely. Just consider the 2012 report from The Sydney Morning Herald about the arrest of a ring of criminals manufacturing $15 million AUD worth of drugs out of rental properties. Or the evicted tenant who left the stove on and almost burned down the property. Or a property with an unplugged refrigerator that had been left stuffed with meat — for two whole years.

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A Letter From Our CEO and President/CFO Regarding COVID-19

Our teams representing GNP Realty Partners, GNP Management Group, GNP Construction, One Development, CMPS and Chicago Five-O Services continue to be those you rely on for help with your decision making and business continuity. We want you to know that our administrative, management, maintenance and security staff employees will continue to receive salaries and benefits as we navigate through this difficult time.

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How to Calculate Potential ROI Before Investing in Real Estate

Running through the financial calculations on a property is a crucial step before the actual purchase. With careful calculations, you will know whether the property is a good investment or whether it will be a drain on your finances. While you cannot predict everything, you can discover enough to calculate a good estimate of income, expenses, and your return on investment (ROI).

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