McBride Real Estate Services, Inc. (MRES) provides real estate solutions that champion our clients’ business objectives. We are not a typical “brokerage” firm. Rather, we are a flexible organization, consisting of seven senior real estate professionals driven to provide our clients with the best solutions at the best value. Our partners’ backgrounds include work in the legal, financial, construction and architecture sectors, plus an average real estate experience level exceeding 10 years. The advantages MRES clients enjoy are: customized solutions, access to the best professionals for every phase of a project and the personal attention of the company’s principals.

Features:

• Very Nice Reception Area
• Suite Entry Signage Available
• Access to Large Conference Room
• Access to Kitchen & Workstation

Premises: 2 Windowed Offices, 1 Interior Office

Monthly Rate: $1,500 – Large 300 SF Windowed Office,  $1,000-150SF Interior Office

Availability: Immediate

Lease Term: 2 Month – 2 Year Term

Fee:  5%

Download PDF:

Michael Kent:

Managing Director

P 202.204.7847 Direct

michael@mcbrideres.com

Richard McBride:

President

P 202.204.7843 Direct

c 202.271.4234

richard@mcbrideres.com

Georgetown Place- Sublease

Features:

• Class A Building in the Heart of Georgetown
• 5-6 Windowed Offices
• 2 Interior Offices
• Conference Room
• Windowed Work Room
• Many above standard improvements
• Adjacent to Four Seasons Hotel
• Very Efficient Layout

Premises: 2,757 SF of Office Space on 3rd Floor, 237 SF of Storage Space

Rental Rate: $39.50 per SF

Availability: January 1st

Lease Term: Approximately 3 years, 3 months, Through March 31, 2015

Download PDF:

Kerr Evans:

Principal

P 202.204.7844

c 703.981.8348

kerr@mcbrideres.com

Richard McBride:

President

P 202.204.7843

c 202.271.4234

richard@mcbrideres.com

Fantastic Purchase for User or Investor

Sale Price: $1,600,000

Offered By: McBride Real Estate Services, Inc.

• 4,000 Square Foot Building
• Currently built out for office use
• Zoning -C2B (allows for multiple uses, (commercial, residential, retail)
• Excellent location “Adams Morgan Strip”
• Easy Access to Red Line Metro, Woodley Park Stop is 12 minutes walking

Demographics for 1 mile radius:

• 2010 Population -87,331
• Medium Household Income $54,962
• Average Age 37

Download PDF:

Andrew Renart:

Managing Director

P 202.204.7842

C 301.775.0888

andrew@mcbrideres.com

For Sale

Building Information:

• 47,569 Gross Square Foot Office Building
• Zoned -C-3-B
• Underground Parking
• Located 1 blocks North of Dupont Circle Metro (red Line)
• 100% Leased

Download PDF:

Richard McBride:

President

P 202.204.7843

C 202.271.4234

richard@mcbrideres.com

Roy Ayers:

Mangaing Director

P 202.204.7838

C 073.303.3063

roy@mcbrideres.com

Medical Office Market Watch

In this ever changing economic climate, doctors are looking to reduce expenses. Fueled by declining revenues, insurance reimbursement issues or the retirement of a partner, doctors are downsizing their office space needs in order to reduce the cost associated with costly lease liabilities.

If you are in a long term lease for more space than you currently need and would like to reduce your liability, then subleasing extra space may be the right option for you.

Before you do anything, understand your current financial situation and space needs. Then work with a real estate consultant to determine if subleasing is the best option for you.

If you elect to travel the subleasing path (whether subleasing the entire space or just a portion of the space), the overriding objective is to reduce the remaining lease

liability or offset the liability on space that is underutilized. Subleasing can be a simple but challenging process. It is important that you stay focused on the objective and be competitive to achieve that objective.

In general terms, a sublease will be considered competitive if:

• Two years or more remain on the lease (the shorter the term, the harder it will be to sublease without large discounts to the rent);

• Space offered on a shared basis includes prime space (windows) in conjunction with less desirable space (interior);

• You are willing to be flexible with concessions (i.e.,improvements to the space, rental abatement, furniture, equipment or shared resources in the event of shared sublease);

• The space is presentable. Touch up paint or have the carpets cleaned if necessary as fi rst impressions are as important to a potential subtenant as they are to you.

Once you have determined that your medical space will be competitive, you need to determine the correct pricing for the space. The pricing structure for subleasing the entire space will be different from the structure for subleasing a few offices within your space.

Before you price the space, you need to consider the following:

• The condition of the overall office market;

• Length of the remaining lease term;

• The condition of the space (need for improvements or not);

• The current lease rent and how it compares with the market;

• Understand what the direct rents are in the building and what other sublease rents are for comparable sublease space;

• Understand who will be in your pool of potential subtenants. For example, if you are subleasing a few spaces within your practice and you only want doctors within your field, then you are shrinking the pool and need to adjust the sublease rent down accordingly. If you are open to sharing space with doctors in different practice field, then you are increasing your pool and can adjust the sublease rent up accordingly.

In almost all cases in today’s market, sublease rental rates are discounted anywhere between 15% to 50% of the current lease rate. Subleasing space is also a time sensitive issue. As time passes, the space may become less and less desirable and the lost sublease income can not be recouped.

Therefore, consider being aggressive and fl exible from the outset. Be sure to evaluate your pricing and the activity on the sublease (i.e., number of tours, number of proposals) every 60 to 90 days and adjust as needed. Do not let the sublease become stagnant. Whether you are looking to sublease one room or the entire space, remember that the endgame is to reduce the lease liability.

This newsletter is being sent courtesy of the Medical Leasing Group at McBride Real Estate Services. If you are interested in subleasing or have other concerns, contact our Medical Leasing

McBride Leasing Tip

A well negotiated letter of intent can lose its teeth if not properly documented in the lease. With each newsletter, McBride Real Estate will include a leasing tip to ensure that valuable concessions negotiated into the letter of intent are properly documented in the lease as well.

Operating Expense Passthroughs
Most tenants believe that the only profit center for a landlord is the rental rate income. However, landlords try to create a second profit center in the operating expense passthroughs that landlords require tenants to pay each year.

Operating expenses are the landlord’s costs to operate the building including water, electric, insurance, etc. In a full service lease, tenants are given a base year for operating expense passthroughs (i.e., typically the year that you occupy the space). Tenants then pay their pro-rata share of increases in operating expenses above the base year. For example, if your base year is 2011 and in that year it costs the landlord $15.00 per square foot to operate the building and in the second lease year, it costs the landlord $16.00 per square foot to operate the building, the landlord should pass through the $1.00 per square foot to you as additional rent.

Typically, a landlord will attempt to pass through these costs upon the commencement of the lease. To ensure that you do not start paying additional rent before you haveto, secure language in the letter of intent that the passthroughs do not commence until the fi rst anniversary of the lease commencement date. This is a standard clause that every landlord is willing to provide to a tenant.

Specialists:
Marc Shandler
(202) 204-7840
marc@mcbrideres.com

Andrew Renart
(202) 204-7842
andrew@mcbrideres.com

Josh Cramer
(202) 204-7837
josh@mcbrideres.com

6801 Industrial Road, Springfield, Virginia 22151

• 500,000 Square Foot Building-Office, Warehouse and Shop Space
• Situated on 20 Acres
• Zoned I-6 in Shirley Industrial Park
• Located within the Beltway just off I-395

Download PDF:

Please Contact:

Roy Ayers

Managing Director

P. 202.204.7838

M. 703.303.3063

roy@mcbrideres.com

Alex Green

Principal

Woodmark Commerical

P. 202.339.6221

agreen@woodmarkre.com

Our economy needs inflation the way our food needs salt.  An absence of salt causes cramps, too much can kill, but just the right amount makes everything taste better.  In a similar way, an absence of inflation can cramp the economy and turn into deflation (imploding a growth-based economic system).  Currency devaluation from hyper inflation can be equally devastating. Many of us remember living through high inflation in the 1970’s, and have witnessed extreme currency devaluation in other countries.  However, a modest amount of inflation can be a beautiful thing, especially when we’re in the 2% – 5% sweet spot.

A healthy inflation rate could be the balm that sooths many of our country’s economic woes. Until the technology or manufacturing sectors start driving growth, regaining a 2% – 5% annual inflation rate would create a silver stairway in the climb out of our lingering recession. Inflation decreases the value of our currency.  At the same time, it reduces the true cost of our debt and increases the monetary value of our real assets.  Given that much of our economic woes have been anchored to the housing market, a few points of annual inflation would go a long way towards making our country’s real estate “right side up” again. Inflation also raises the cost of borrowing…but low interest rates alone have yet to stimulate the economy or make our lending institutions busy.  Inflation will also serve to lover the true value of our national debt…a very good thing for the long run prospects of the US.

The Bureau of Labor Statistics recently released the Inflation Rates for August.  Inflation, as measured by the Consumer Price Index (CPI), rose by 0.3%.  Although this could imply a 3.6% annualized inflation rate, the currently projected inflation rate for 2010 is only 1.1%.  Rising energy and food prices are driving the recent CPI increases, but the core inflation rate remained flat.

The funny thing is that we seem to be doing everything we can to create inflationary conditions:  running up huge national debt, aggressively expanding the money supply and virtually giving money away (the Federal Discount Rate is currently 0.75%).  My feeling is that once we start to see some more signs of resilience in the economy, inflationary pressures could take hold quickly.  In the meantime we will continue to meander along with a stagnant national economy.

Imagine a street lined with some of the city’s hottest bars & restaurants, music venues, theatres, art galleries and outstanding shops & boutiques. A centrally located boulevard, in the shadow of the business district surrounded by some of the city’s most charming residential architecture and a multitude of new condominium developments. Best remembered by older Washingtonians for street walkers, an AIDS clinic and a homeless shelter, 14th Street has been reborn. Today 14th Street is the perfect real estate cocktail: two parts hip, one part funky with a dash of urban edge. Critical mass is concentrated between Rhode Island and Florida Avenues. Nestled between two of downtown DC’s most beautiful neighborhoods (Logan Circle and Dupont Circle), 14th Street is rapidly filling in with arguably the best mix of commercial properties in the city. You’ll find everything from crepes, coffee, furniture, antiques, high end stereos, a chocolate shop, beer garden, oyster bar, wine bar, gourmet market, art galleries, etc. etc. Come back again in the spring and you’ll find it reborn again after a few hundred new condos deliver, along with another slew of new retail.

14th Street Highlights:

• No chains here, this is truly home grown Washington; unique retail abounds.

• Great Anchors – North (Busboys & Poets, Eatonville, Marvin’s, View 14 Apartments, etc.) and South (P Street Whole Foods, Lululemon, Sweetgreen, ACE Hardware, Stoney’s Tavern, etc.)

• Gracious Housing – East (Logan Circle) & West (Dupont Circle)

• Arts Abound – Studio Theater, Source Theater, The Black Cat, Vegas Lounge to name a few.

• What recession? New condos going up like gangbusters.

• Easy Riding – Bicycle lanes on both sides of the avenue.

• Walk to work, if you’re not sitting in a coffee shop with your laptop.