Times are tough all over. You don’t have to remind small-business owners of that.

But with commercial real estate prices at historic lows, and low mortgage  rates right there beside them, entrepreneurs are missing a big chance to make a huge killing — and bolster their business in the process.

The CIT Small Business Commercial Real Estate Study, a report from CIT Group(CIT_), documents how small-business owners can capitalize on great commercial real estate deals, even though they apparently don’t want to.

According to CIT analysts, cheap commercial real estate is one of “the few upsides” for small-business owners trying to operate in a harsh economic climate.

But entrepreneurs aren’t taking advantage of the low prices. CIT says only 6% of small-business owners have bought one or more commercial properties, while a majority — 53% — say they “haven’t even thought about making a purchase.”

Overall, only a little over a quarter — 28% — of the 300 small-business owners interviewed for the survey say real estate is a “great” business opportunity.

The path to leveraging great commercial real estate opportunities goes through the U.S. Small Business Administration, the survey says.

“Today’s market conditions may offer a once-in-a-lifetime opportunity for entrepreneurs who want to take their businesses to the next level,” says Chris Reilly, president of CIT Small Business Lending. “To achieve this, Small Business Administration loans, with their low cost and flexible terms, offer an excellent choice for small-business owners looking to refinance their existing real estate or to acquire a new property.”

Small-business owners have their reasons for not jumping into the real estate market. CIT reports that 36% of respondents say they may not be able to qualify for a loan, given the tight lending market.

Another problem is liquidity, since 19% of business owners say they can’t afford a down payment. CIT notes, though, that SBA loans can come with lower down payments, lower monthly payments and longer “pay-off” periods than regular bank loans, which can surely address some small-business owners’ liquidity problems.

The study shows that only a tiny minority of survey respondents are aware of those benefits. The recently enacted Small Business Jobs and Credit Act “sweetens SBA loan terms for both lenders and borrowers, eliminating borrowers’ fees, raising the loan guarantee to 90% from 75%, and increases loan limits.”

Sure, CIT has a horse in this race — it wants to make loans to small-business owners. But there’s no question there has rarely been a better time for a small-business owner to buy commercial property.

Since small businesses employ 59 million people (about half of all private sector jobs, CIT says), any investment in property that solidifies a small-business owner’s financial position is good for his or her business, employees and the economy.

But entrepreneurs don’t see it that way, and they’re the ones who control the purse strings, no matter how many great real estate deals are out there.

This article has been republished from The Street.

The survey also found that nearly half of all renters say they would be more likely to rent an apartment or unit in a completely smoke-free building where smoking is prohibited in indoor common areas and individual units (47 percent). By comparison, 31 percent say it would make no difference and only 20 percent would be less likely to rent on those terms.

“These poll results represent a call to action for landlords and tenants alike,” declared Joel J. Africk, president and chief executive officer, Respiratory Health Association of Metropolitan Chicago. “Property owners should be proud to advertise their units’ smoke-free status; and health-conscious renters should demand smoke-free living options.”

These findings coincide with an emerging trend in the Chicago rental market whereby landlords and property managers are converting their rental properties to “non-smoking,” according to Maurice Ortiz, marketing director of the Apartment People, an apartment-finding and listing service with nearly 30,000 rental clients each year.

Studies have revealed that the cost of turning over an apartment at the end of the lease can be as much as 90 percent higher when the unit has been occupied by a smoking tenant. But it’s not just the cost savings that have property managers’ attention: ”Environmentally-friendly and health conscious properties are simply easier to rent,” says Ortiz.

The Chicago study reflects a growing awareness among prospective renters of the dangers of secondhand smoke, with 88 percent of those surveyed ranking secondhand smoke as a serious health hazard. “That awareness is shaping attitudes towards healthier lifestyles relative to tobacco exposure and a strong desire to live, work and play in smoke-free environments,” said Dave Fako, whose firm has conducted numerous polls in Illinois and other states on attitudes towards tobacco during the past decade. This poll involved a random sampling of 400 adult renters within the city of Chicago.

The Chicago Tobacco Prevention Project is releasing this survey data in the midst of tobacco “Quit Week,” Nov. 9 – 17, 2010, a week-long citywide effort to encourage Chicagoans to quit smoking and link them to local resources.

“The goal of Quit Week is to raise awareness about the importance of smoking cessation and to provide linkages to local resources so that people who are serious about quitting can be successful,” said Bechara Choucair, MD, Commissioner, Chicago Department of Public Health. “Encouraging smoke-free homes is an important strategy in our city’s winnable battle to reduce smoking rates and exposure to secondhand smoke,” he concluded.

Do you think this could work in the Bennington VT real estate market ?

Reprinted from the American Apartment Owners Association Newsletter

As part of a March contract awarded to Wisconsin-based Oshkosh Corporation to build an additional 1500 M-ATV armored vehicles, Plasan North America, which manufactures armor kits for the vehicles will be the beneficiary of $170 million of the $640 million deal.

This is just the latest in its venture to secure military contracts. In late February, Plasan delivered its 5,000th armor kit for the M-ATVs – armored fighting vehicles developed by Oshkosh – successfully fulfilling all contracts on-time during the seven-month period.

Plasan specializes in the development and manufacture of add-on armor systems for the military and commercial armored vehicle market using composite material technologies. Plasan North America is a part of Plasan SASA based in Israel.

The focus of its core business is the development, manufacture and assembly of Add-On Armor Kits (APK’s) for lightweight military tactical tracked and wheeled armored vehicles, fixed-and rotary-wing aircraft, naval platforms and civilian armored vehicles.

“Plasan is very excited to be a growing part of the Vermont _economy. We are bringing high-value jobs to the region in developing our survivability solutions,” said Plasan spokesman Don Goldberg of Qorvis Communications in Washington, D.C.

The new contract will be geared to the ongoing Afghanistan military operation. Varying from the conditions in Iraq, the Afghan terrain is steeper and required a lighter, more flexible armored vehicle.

Plasan is an asset to the Bennington business community, said Bennington Town Manager Stuart Hurd. “We have been very pleased with all the Plasan contracts. It confirms that they are turning out a good product,” said Hurd.

“Plasan has been a godsend in putting people to work in Bennington with good jobs, good pay and good benefits,” Hurd said.

Plasan’s additional employment offset earlier layoffs in the automotive sector in Bennington, said Hurd. For the most recent quarter, unemployment dropped by half a point in Bennington.

Bennington is also home to Vermont Composites, which works in the aerospace and medical/industrial markets. “We are hopeful to develop a niche in the composite field for additional business opportunities in town,” said Hurd.

Reprinted from The Battenkill Business Journal, Published May 11, 2010

By TRICIA N. HAYES

Positive economic news like this is always nice to hear in the Bennington VT real estate market.

Commonwealth Dairy is a joint venture between Ehrmann USA, a subsidiary of family-run Ehrmann AG, an international yogurt company based in Germany with annual revenues in excess of $1 billion, and Commonwealth Yogurt. The new facility will be LEED (Leadership in Energy and Environmental Design) compliant as determined by the U.S. Green Building Council.

Read full story here.

This firm was looking in the Bennington VT real estate market, and the Broker who was assisting them called Troy Richardson at RE/MAX Maple Leaf Realty to help with the search in the Bennington VT area. RE/MAX Maple Leaf Realty’s Commercial Division is ready to help firms big and small with their relocation, expansion or start-up needs.

Several large construction projects have been approved by the town and will break ground soon, said Daniel Monks, the town’s planning director and zoning administrator. Among the projects are:

* A new state office building, $17 million

* Construction of a Carbone Hyundai and Ford dealership, $5 million to $8 million

* A new Bank of Bennington branch, $1 million

* Bennington Rescue, $600,000 to $700,000

* Plasan North America, constructing a 4,000-square-foot addition, $800,000

Meanwhile, some projects have already been completed, including the renovation of the Aubuchon Plaza, which now houses the Department of Motor Vehicles and a fitness center, and the rebuilding of Martin’s Mini Mart, which burned last year.

“The summer is looking good for construction projects, both in number and in terms of investment. It’s a good turnaround from last year. The last couple of years have been slower than we’d seen,” Monks said. “Some of these were definitely put off because of the economy. You can definitely say that investment in construction in Bennington is increasing from last year to this year by a significant margin. That’s a good thing to see.”
The total number of permits granted by the town began to dip in 2007. In 2006, the town approved 348 permits, but it has dropped steadily in subsequent years, with 315 in 2007, 272 in 2008 and 265 in 2009. The number of permits issued in 2008 and 2008 was below the level in 1997.

The number of residential permits sought by local property owners remained relatively steady throughout the prolonged recession, according to Larry McLeod, the town’s building inspector. However, the permits sought were smaller in scope, he said.

“Last year was definitely a drop. People weren’t putting in the pools or decks or garages or the extra things,” McLeod said.

Monks said he expected an increase in the value of residential renovation projects this year. “It probably got down, if we had to grade it on A to F, to about a C-minus. Now we’re heading into the B range, which is good to see, and we’re hoping that it will continue to improve.”

The housing market is showing signs of life, too, according to town assessor John Antognioni. Local Realtors are seeing more leads and have more properties under contract. However, it hasn’t yet translated into an increase in closed sales, he said.

The local housing market did not experience drastic fluctuation in property values as other parts of the country did, Antognioni said.

“The houses that are selling certainly are at or above what we have them assessed for,” he said. “Here in town we really didn’t see houses selling for 75 cents on the dollar or markedly less than they were.”

Contact Neal P. Goswami at ngoswami@benningtonbanner.com, reprinted with permission from The Bennington Banner, Tuesday April 27, 2010

Troy Richardson and Re/MAX Maple Leaf Realty are active in the revitalization efforts with many new and expanding businesses leasing and buying property in the Bennington VT real estate market.

Landlords in the Bennington VT Real Estate market need to be sure they are not unknowingly violating Federal Law.  Hiring a firm like RE/MAX Maple Leaf Realty wil ensure that you are following all applicable federal and state regulations with regard to rentals and Fair Housing Practices.

Massachusetts Attorney General Martha Coakley announced a settlement between her office and a Revere, Massachusetts landlord over allegations that his rental ad in Craigslist violated state discrimination statutes. 

This judgment is the result of a continuing statewide investigation by the Attorney General’s Office into reports of widespread discriminatory housing advertisements on the Internet.

“As more families face tough financial times and have no choice but to rent, landlords and real estate professionals must recognize that the rental market is a regulated industry,” said Attorney General Coakley. “While we hope that this enforcement initiative will have a deterrent effect, our office will continue to monitor Craigslist.”

The Attorney General’s Office has settled 20 similar cases and filed six other complaints against landlords and real estate agents across the Commonwealth accused of violating state anti-discrimination laws on Craigslist.

In this case, the landlord used Craiglist to advertise a unit for rent in Revere, stating “no Section 8.” The Massachusetts Anti-Discrimination Act prohibits landlords and others involved in property rentals from discriminating against people who use state or federal housing subsidies to pay for all or a portion of their rent.

The settlement requires the landlord attend trainings on state and federal fair housing laws.  He has also agreed to place “Equal Housing Opportunity” in any future rental property ads. And,  in an effort to increase awareness of this important issue, the landlord is required to place postings on Craigslist informing other Craigslist users that the Attorney General monitors Craigslist for discriminatory advertising and that it is against Massachusetts law to state a discriminatory preference against recipients of housing assistance subsidies.

He will also pay $750 to a local charity that provides legal services to poor and low-income persons in housing and a variety of areas.

Bike Shop Riding Downtown

BENNINGTON — A longtime bike and winter gear shop on Benmont Avenue is heading to a downtown location later this month.

Dan Rhodes, who owns Roads & Trails with his wife, Faith, said the couple plans to open at 417 Main St., a site formerly occupied by Thyme Bee Mine gifts, on Feb. 23. They have owned and run their store for the past five years.

The Benmont Avenue site has hosted a bike and ski shop for much longer. Before the couple purchased the businesses, it was known as Eiger, and before that, as Up and Downhill.

But Rhodes said he sees a downtown location as a benefit to his business because it should attract more walk-in traffic. Rhodes said he ran a similar store in Connecticut that thrived in such an environment.

“Where I worked in Connecticut, we were on a Main Street, and I enjoyed the traffic flow,” Rhodes said Tuesday at the store’s current location. “Particularly, here, when I look on a Saturday what’s going on down here and then I look at the traffic flow downtown, it’s much busier. It’s more retail business.”

Rhodes said he has been in the business for about 20 years. His store offers road and mountain bikes, nordic skiing and snowboarding equipment, skateboards and apparel to accompany all of those sports.

The stock of skateboard equipment, shoes and clothing attracts children and families, he said, and has benefited from the construction of a skateboard park in North Bennington.

The new space affords a similar amount of retail space, according to Rhodes, but offers increased storage and repair space. The store will continue to do repairs, he said.

“We’re kind of like an old-fashioned bike shop. As long as it’s a bicycle we’ll work on it,” Rhodes said.

When the couple decided to search for a new location they focused the search on the downtown, Rhodes said. “I like the idea of being in more of the retail area. I like the way the town is trying to support downtown,” Rhodes said. “If there’s a section of town that they’re really working on, it’s the downtown area.”

They are holding a sale before the move, and will be stocking the new location with new 2010 products, according to Rhodes. The store should add to the downtown as much as it benefits, he said.

“We’re excited to be down there. We’re excited to be a part of downtown,” he said. “As much traffic as we get from downtown, I hope we add some, too.”

On the Web: www.roadsandtrailsvt.com

Contact Neal P. Goswami at ngoswami@benningtonbanner.com

Reprinted from The Bennington Banner with permission

Telly Halkias

From the time I was a young boy, I had a passion for freshly baked bread, much of it cultivated on bread-crazy European streets. So when local gal Natasha Garder announced she was partnering to open Crazy Russian Girl Bakery on Main Street in Bennington, I said a silent prayer that this time, the enterprise would stick.

There has been much public clamoring for a bakery since Krijnen’s closed several years ago. In a culture that relies on the supermarket for affordable and convenient ways to fill its subsistence needs, baking can be a tough sell — even though it’s difficult to find a person who doesn’t like the product.

Garder has been doing it that way for years, as witnessed by the popularity of her roadside stand, and her presence at Walloomsac Farmers Market. Last weekend, when I popped in her storefront to share well wishes, I noticed several things that bode well for her.

First, Garder partnered with experienced professional baker Matt Littrell of Lake George, N.Y., who has extensive commercial experience. Next, she is baking on the premises, something Sorrento’s, at the same location, didn’t try. Garder realizes that there are long hours ahead, so is branding her business as “local” as possible.

Finally, Garder has the right attitude and is going in eyes wide open. The daughter of immigrants, she is well attuned to the overseas tradition of the neighborhood bakery as a daily stop and

community magnet. Garder is also aware, however, that it takes time to build a regular following that can ensure the financial health of a bakery, especially with our small population base.

Yet historically, the activity of baking started small. Bakers first cropped up on the European continent in ancient Greece, where bread, garden vegetables, olive oil, and goat’s cheese were daily staples.

Always knowing a grand idea when they saw one, the Romans seized upon the notion of bread as vital to every meal. They also realized how profitable the profession could be; at the time of Christ, it’s believed that Rome had almost 300 bakers within its walls.

This tradition carried on through the Middle Ages, when the bakery was often a landlord’s realm, or a public place to bring one’s own dough for an artisan to bake. Depending on regions and demographics, customs from all the aforementioned eras have carried forth to the modern bakery. Today, technology continues to play a vital part in the craft’s development.

But so much of baking is an exercise in intimacy. When my family moved from New York to Greece, one of the first things we had to get used to was buying bread daily at the local bakery. Back then, only a few larger food markets carried processed sliced bread. Most of the latter was imported and cost a pretty penny as a result.

The first time my mother sent me out to pick up a loaf, we realized there was a problem. I had eaten more than half of it by the time I made the four-block walk back home. Standing in line waiting to place my order while watching apprentices kneading the fresh dough by hand, and flour dusting the air, was the sweet torture of youth.

Such was demand that the bread always was less than an hour out of the brick ovens, and its heat through the paper bag and aroma wafting up at me was too much to resist. Once I broke off the heel with a distinctive crunch, more followed.

Mom solved this by slipping me a few extra drachmae so I could get my own loaf, and that bad boy never made it home. If only I could inhale one of Natasha’s loaves today with such élan and no repercussions to my waistline.

Nevertheless, Crazy Russian Girl is a welcome downtown sight at a time when small businesses everywhere are struggling with the demands of our wobbly economy. How well Garder does is important; but probably not as vital as the fact that she is giving it a go in the first place.

And maybe one day soon, when I’m walking nearby, I’ll see a boy heading home with two loaves.

Telly Halkias is the owner of Now And Then Books and a freelance writer and editor. E-mail: tchalkias@aol.com

Reprinted from The Bennington Banner with permission

    “When a business owner tries to sell his or her own business, people start to wonder,” said Rob Firestone, International Business Brokers
Association (IBBA) board member and principal and general manager of Bluestem Resources Affiliated Group of Tulsa, Okalahoma. “Just placing an ad can create mounds of uncertainty that can be detrimental to a business owner’s bottom line.”

    On average, a business sale takes nine months to one year. Keeping the sale of a business confidential increases the likelihood of a successful sale at an optimum price. Here’s what can happen if word gets out that a business is for sale:

    — Employees get nervous.  The mere utterance of a sale, can send some employees packing.  “There’s a lot of uncertainty for employees, so they’ll start looking for jobs that make them feel more secure,” Firestone said. Losing key people is also serious for the sale process. Aside from their direct impact on company performance, key staffers provide valuable business continuity and knowledge that buyers want.

    — Customers will wonder.  Concerns over the reason for the sale of the business lead to questions of whether they’ll get the same quality from the new owner.  Just to be safe, many customers will start looking for other vendors.

    — Competitors act quickly.  A non-confidential business sale gives competitors the opportunity steal business.  “Once the competition finds out, you can rest assured they’ll use it as leverage to acquire your customers,” Firestone said.

    — Vendors and creditors may think twice.  Business owners who are unable to keep the sale confidential may find terms tightening or notes unexpectedly called due.

    “Confidentiality is crucial for any business sale, no matter the size or the type of business,” added Cress Diglio, IBBA chairman and partner at Corporate Investments International, Inc. of Orlando, Florida. “To maintain confidentiality, use a professional intermediary who will market the business confidentially, while attracting potential buyers.”

RE/MAX Maple Leaf Realty understands this need for confidentiality, and can assist you with the sale of your commercial property or business.  Call Troy Richardson today for all your commercial needs at 802-447-3210.

    The International Business Brokers Association is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of business brokerage and mergers and acquisitions. http://www.ibba.org/

Bennington VT, Selling, Commercial Property