1. Chapter 19 Commercial and Industrial Real Estate1 New Jersey Real Estate for Salespersons and Brokers By Marcia Darvin Spada Thomson/South-Western Copyright, 2006

2. Chapter 19 Commercial and Industrial Real Estate2 Chapter 19 Commercial and Industrial Real Estate

3. Chapter 19 Commercial and Industrial Real Estate3 Chapter 19 Key Terms  Asset based loans  Brownfield and Contaminated Site Remediation Act  Debt coverage ratio  Expense stop lease  Industrial establishment  Industrial Site Recovery Act (ISRA)  Rent escalation clause  NJ Franchise Practices Act  NJ bulk sales reporting requirements

4. Chapter 19 Commercial and Industrial Real Estate4 Types of Commercial and Industrial Property Multi-family Office Industrial Retail Health Care Brokers must research demographics and competing properties

5. Chapter 19 Commercial and Industrial Real Estate5 Commercial Leasing Building amenities Type of lease Lease duration On-site management

6. Chapter 19 Commercial and Industrial Real Estate6 Concerns of Commercial Tenants Effective rent Building design Location

7. Chapter 19 Commercial and Industrial Real Estate7 Commercial and Industrial Site Analysis Site Physical site Zoning Feasibility study Mora- torium Community acceptance

8. Chapter 19 Commercial and Industrial Real Estate8 The NJ Brownfield and Contaminated Site Remediation Act  Reimbursement to owners who address contamination  Liability protection for developers, users and lenders  Covenant not to sue from NJDEP  Protections apply to innocent parties-those who did not cause contamination

9. Chapter 19 Commercial and Industrial Real Estate9 Industrial Site Recovery Act NJ DEP Industrial establishment Sale, closure, or transfer of industrial property

10. Chapter 19 Commercial and Industrial Real Estate10 Commercial FinancingUnderwritingLendingratios Debt coverage ratioPropertyanalysis Creditworthiness

11. Chapter 19 Commercial and Industrial Real Estate11 Business Loans Loan Short term Asset based Contract financing Factoring TermEquipmentLeasing Credit line

12. Chapter 19 Commercial and Industrial Real Estate12 Transfer of Franchises Franchise An arrangement in which one grants to another a license to use a trade name, or other characteristic NJ Franchise Practices Act If a franchisor wants to deny the transfer of a franchise, there must be material reasons relating to character, finance or business experience.

13. Chapter 19 Commercial and Industrial Real Estate13 New Jersey Bulk Sales Reporting Requirements  For those who make a sale, transfer or assignment of business assets not sold through the usual course of business.  Purchaser must notify NJ Division of Taxation 10 or more days before taking possession of assets.