When a new project is developed, typically we do a sale and leaseback of a model unit. Usually this is a prime location in the park because we want our model to have excellent visibility and we want the park to show well. It also showcases our product, so it typically has upgraded finishes from the standard building. Although pricing on the model is at list price, it has upgraded finishes at no cost, and pricing generally increases by 10 to 15% during the development period of the project. The lease period is typically three years using a 10% cap rate on the building. At the end of three years the building is repainted inside, everything is brought to brand new condition, and the unit is delivered to the owner.

When we develop a new project, usually we get numerous requests to lease space within the project. Professional Office Developers will enter into leases with tenants for space to be constructed, and then sell those buildings with leases in place. The leases are at market rents, to high quality tenants, and are assignable to our customers. In some cases they have personal guarantees from the tenants as well. The leases can be for a portion of the the building or for all of a building, depending upon the desires of the purchaser.

Same as sale of leased units but Professional Office Developers handles the management of the property exclusively. Management fees are negotiable but typically run 10% of the rent payable pursuant to the lease.

The buildings we sell typically make excellent investments. They are easy to lease, easy to finance, easy to sell and easy to manage. They are a great way to invest in real estate without the typical headaches associated with that type of activity, and the return from both rentals and sales can be very attractive. Please feel free to discuss any of the above concepts with us at any time.