Reasons to Outsource CRE Accounting Services – Focus on what YOU love!

Do you spend more time than you’d like overseeing accounting when you’d rather be focusing on your business goals? 💸

Many commercial property owner-managers just want quality reporting on their assets, but find themselves sinking more time than they’d like into accounting functions. Here’s how we can help you devote more time to the business you enjoy!

 

Top 5 Reasons to Install Solar for Your Commercial Property

1. Significant Return on Investment (ROI)

Solar is a low-risk, high-return financial investment. Solar pays for itself in a range of 3-10 years*, and solar PV systems have a lifespan of 25+ years – that’s 15+ years of no-cost energy. The time it takes to break even (solar payback period) depends on several factors, such as the cost of the solar PV installation, property location, and current energy consumption.

2. Tax credits will minimize your investment

The Inflation Reduction Act (IRA) of 2022 establishes and extends the federal Investment Tax Credit (ITC) for solar photovoltaic (PV) systems at a rate of 30% of the total PV system cost. The 30% ITC was extended for 10 years, through 2032. Unlike tax deductions, this tax credit can be used to directly offset your tax liability dollar for dollar.

3. Reduce overhead costs and increase your Net Operating Income (NOI)

Boost your cash flow by significantly decreasing the operating costs for energy and creating roof rent income for Ownership. Solar energy could become a source to generate additional revenue through monetizing assets like roof space and parking lots.

4. Attract and retain more tenants

Installing solar panels will significantly decrease tenant electricity bills. Not only will you attract tenants looking to save money, but you will also be more likely to attract tenants interested in sustainability practices. Solar Energy increases the reasons for tenants to renew their leases and enhances the property value for future tenants. You’ll be making the first step in promoting an eco-friendly community and building a greener reputation for your business.

5. Safeguard the planet AND your business by going green

The sun is a source of clean, sustainable, and renewable energy. Utilizing solar energy will not only reduce your carbon footprint and decrease pollution, but also safeguard your business against rising grid prices and boost your property’s value.

*The California Public Utilities Commission (CPUC) has finalized the rules for Net Energy Metering 3.0 (NEM-3), which will take effect on April 14, 2023. The rule change results in a significant reduction in the value of energy exported to the grid from an onsite solar energy system. Currently, under NEM-2 solar systems receive close to retail-rate for any electricity that is not used onsite and sent back to the electricity grid. Under NEM-3, the credit value for exported energy will be in line with wholesale rates, which average $0.02-$0.05 per kWh (a ~70% reduction in value). Luckily, there is a short window of time until April 13th to register projects under the NEM-2 rules. The qualification for ensuring a system is granted NEM-2 status, which contains a 20-year grandfathering period, do not require the system to be installed or operational by this deadline. Rather, an interconnection application must be submitted to the relevant utility (SDG&E, SCE or PG&E) and marked as complete by the deadline. The project would then have a 3-year window to be installed.

Reasons to Outsource CRE Accounting Services – Scalability

One of the challenges of managing a commercial real estate portfolio is scaling your team as the portfolio grows 📈 and shrinks📉. We can help you solve the “right-sizing” challenge that comes with hiring and staffing. Leslie Mittanck, our Director of Accounting Services, speaks on this in the video below!

 

Estate Planning Family Strategy

What is the Role of Meissner as Real Estate Advisor?

Our role as asset manager helps our clients with looking at things from a bigger picture perspective, especially regarding something as important as legacy real estate transition.

As real estate advisors, how we support the family differs from a standard property manager or asset manager. We focus our investment strategy on how to achieve family goals and investment goals, while an asset manager focuses on transactional business such as leasing, construction, and financial reporting, and a property manager focuses on day-to-day operations. The real estate advisor understands real estate, the strategies for protecting the asset and improving property value, and makes recommendations for best times to hold, sell, purchase, or refinance a portfolio according to the family’s goals. In formulating a legacy transition plan, we analyze the assets and family needs, formulate a plan, gain consensus, and then implement it.

Adding Value to the Family

To us, adding value to a family also means providing good strategic and operational advice and earning the trust of the family. A complex mix of real estate asset and property conditions create the need for our specialized expertise. The condition of the asset may entail its financial condition, occupancy stability, capital needs, as well as the family’s financial needs – how can the assets meet the family goals? The answer can vary widely between families, and we take a deeper look and give advice with these questions in mind to enable the family to make the most informed choices, whether it’s for family cash distributions, desire for capital gain, or goal to expand the portfolio and income stream. We consistently look at operating budgets, financial alternatives, capital plans, and monitor income/expenses, and provide quarterly reporting and meetings with Ownership to ensure we are on the same page.

Family Enterprises & Their Structures

Many of our clients are family offices and we have over 15 years of experience working with families that have commercial real estate assets that have, or will be, transitioned to next generation family members. In different cases, this can mean that we work with the 1st generation patriarch/matriarch, 2nd generation family leaders, and even with 3rd generation family leaders and their Trustee. Whether a client needs to execute an existing succession plan, create guidelines for family governance, or develop a “road map” to accomplish their specific needs and goals, we can help.

Our Background and Experience

Meissner Commercial Real Estate Services is a company that specializes in advisory services, asset management, and property management. We address property level issues, long term planning, and capital needs. Meissner has been in business for 30 years. Our Real Estate product types include office, retail, and industrial, and our portfolio has market value of over 1 billion, and our asset values range from $20M to $100M.

How To Increase Returns on Real Estate

On June 15th, R. J. Kelly interviewed Tim Meissner, our Founder & Chief Executive Officer, in a webinar on real estate solutions for property owners, focusing on how to increase returns on real estate, minimize taxes, and keep more profit. See the webinar recording below:


Tim has over forty years of experience in commercial real estate operations including advisory services, asset management, acquisition, disposition, finance, leasing, construction, and property management🤝📈. His career path has been focused on commercial real estate transactions and the formation of Meissner CRES as an operating business that manages a client portfolio valued in excess of $1 billion.

Non-reclaimed Turf Irrigation Must Stop 🚱

 

📢 The California Water Resources Control Board adopted emergency regulations earlier this month due to the state’s ongoing drought. Effective June 10th, watering commercial grass not irrigated by reclaimed water must cease🚱.

Due to these new statewide water conservation measures, we are working with our landscaping service providers and the various local water districts to ensure compliance with the new regulations 💧. We will be placing lawn signs on all properties with affected turf to advise the public that turf irrigation is turned off to comply with California drought requirements.

We are exploring renovation options with our various landscape service providers to install drought-tolerant plants🌵 and low water irrigation systems for properties where it makes sense.

The California Water Resources Control Board updated regulations may be found here: https://lnkd.in/gmiy7-7k

Tim Meissner on Estate Planning Family Strategy – Part 2

Interested in learning more about estate planning family strategy?  👪🏠 Tim Meissner spoke on our advisory type of work and what processes those entail. Watch the clip to find out more! 🎞️ See the first part here:: https://meissnercres.com/blog/all-properties/tim-on-family-strategy/

 

Tim Meissner on Estate Planning Family Strategy

Interested in learning more about estate planning family strategy?  👪🏠 Tim Meissner spoke on our advisory type of work and what processes those entail. Watch the clip to find out more! 🎞️

Meissner CRES Announces New Scholarship Fund

Meissner Commercial Real Estate services announces the Meissner Commercial Real Estate Services Current Use Scholarship Fund. Meissner has signed with USD to donate $10,000 per year for the next five years to establish a scholarship fund to support students passionate about real estate.

This scholarship will be awarded to deserving undergraduate students who are majoring or minoring in real estate and/or graduate student in the Master of Science in Real Estate (MSRE) program at USD, as well as students who are active duty military or veterans of the U.S. military.

Meissner CRES provides this scholarship in recognition of their commitment to excellence in commercial real estate services. Dedicated to supporting the advancement of forward-thinking, innovative real estate professionals, Meissner CRES strives to motivate students who value integrity, excellence, personal growth, and teamwork. Chief Executive Officer and Founder, Tim Meissner, believes that “investing in the next generation of real estate professionals will pay dividends in the long run.”

San Diego-based Meissner CRES is a full-service real estate management firm offering institutional level property management. The firm manages 16 million square feet of office, retail, and industrial properties, including commercial owner associations, throughout San Diego, Los Angeles, Orange, Riverside, and Imperial Counties. Since its inception in 1992, Meissner has managed over 75 million square feet of commercial property in Southern California. For details, visit www.meissnerCRES.com or connect on LinkedIn.