Real Estate Concerns
New Small Business Jobs Act Offers Numerous Tax Incentives
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
The Timing is Right for Many Restaurateurs
Some start-ups are finding the economic recovery to be the perfect time to set up shop. Entrepreneur reports on how reduced rental costs, the availability of talent and customer expectations are creating a great environment for some restaurants. Everyone knows the prevailing wisdom about the restaurant business: It’s a bad bet, notorious for failure, with three out of four places closing within the first three years. But consider this: Studies have found the risk of closing is the same in good times and bad, according to Andrew Rigie of the New York State Restaurant Association. And the upsides to a down. Read More.
Is it Time to Negotiate a Lower Rent?
A looming commercial real estate bust has many property owners worried about how the next few quarters will progress. The Big Money reports on how your landlord’s uneasiness could help you reduce one of your company’s biggest fixed costs: If you’re locked into a long-term lease, there may not be much you can do. But if you’re not, and there’s no huge reason that you can’t move, I’d suggest making a few calls to find out what comparable space is renting for. You might also try to suss out whether your building and perhaps other buildings owned by the same landlord are having. Read More.
Land Contract Helps a Small Business Overcome Real Estate Financing Challenge
Many new business owners struggle from moving quickly on opportunities for want of financing. The Atlantic reports how Tippy Canoes , a new restaurant in Osceola, Wisconsin, made use of land contracts to get their start: The Bahrs began actively looking for a location to make their own two years ago before the recession had begun to really cripple commerce. They couldn’t put their dream on hold simply because the larger economic landscape looked dismal, particularly not this summer after they assessed possibilities for the building now called Tippy Canoes, which had been empty for six months after the previous restaurant went out of. Read More.
Appealing Property Assessments to Cut Costs
Every dollar counts for businesses navigating the current economy. The complexities of real estate tax assessments often deter businesses from seeking cost savings in those areas. The Wall Street Journal reports on the efforts of some small business owners who have gone up against assessors, and won. Ann Jones of Columbia, S.C., thought there might be a mistake when she received a property valuation from Richland County in January. The co-owner of the Dog Eared Corner LLC, a pet-grooming company, saw her commercial property’s value assessed at $287,000, after she had just bought the three-story building three months earlier for only $210,000. Ms. Jones decided to file. Read More.
First Check the Story Behind the Vacant Storefront
In an article over at MSN’s Business on Main , The Wall Street Journal’s Rob Johnson offers some advice to prospective tenants in the current commercial real estate market: Always research the background of space that’s up for rent or sale …. There’s a story behind almost every available storefront or former restaurant. Maybe the previous tenant left due to poor management, ill health or a divorce — and through no fault of the site itself. But if there’s a problem specific to the location, then, as philosopher Edmund Burke is often quoted, “Those who don’t know history are destined to repeat it.” …. Read More.