Construction Equipment Leasing is a type of leasing arrangement where a small business owner (like you) would like to get Construction Equipment but at a lower cost than when you buy the Construction Equipment yourself. It falls under the broader category of Equipment Leasing which means that the equipment you want to lease is probably very expensive (and Construction Equipment are extremely expensive) but you cannot rationalize buying the equipment because you might need the equipment only for the short-term or you lack the capital for outright purchases.

The usual lease period for Construction Equipment Leasing starts at the 24-month term and could last as long as a 48-month term. Usually, Construction Equipment Leasing will not require you to make a hefty down payment though you may be required to give a security deposit of some amount. This allows you to use more of your cash flow for your business needs and to save up. However, for long-term purposes, it is not advisable to use the Construction Equipment Leasing option – rather, a cheaper option for the long-term loan option is bank financing itself. Construction Equipment Leasing is ideal for short-term needs only.

Construction Equipment Leasing may fall into three main categories – namely the capital lease, the operating lease, or the skip lease. The capital lease (also called a finance lease) acts like a regular loan and will last about as long as the actual lifespan of the Construction Equipment. If the Construction Equipment is in good working condition at the end of this lease term, the capital lease allows you to take advantage of the stipulation to buy the same Construction Equipment you have been using for your company. The operating lease (also called a true lease) lasts shorter than the life span of the Construction Equipment and will usually use up less of your business cash flow. You may find payments for the operating lease to be tax deductible (but you’ll have to check the agreement you are entering if this applies to you.) A skip lease is ideal for any seasonal business where income usually flows in only during specific months in the year (rather than year-round like other businesses.)

When it comes to Construction Equipment Leasing, you may get yourself a better deal if you go straight to the Construction Equipment manufacturers. The larger business finance institutions are also known to do this more commonly than the smaller ones. The best way to find this option is to go online and look for any links to “leasing options.” As with any financial transaction, do not snatch up the first offer you get. Rather, try to look around the market and see if there are any Construction Equipment Leasing companies that can give you a better deal under the same leasing terms. It is equally important to find out if you are in for any tax breaks if you pursue Construction Equipment Leasing for your company. This can be confirmed by your company accountant.



Quick House Sale

The UK has one of the oldest and least efficient building stocks in Europe, accounting for nearly half of the UK’s carbon emissions. If you overlay this statistic with the new Government target to reduce CO² emissions by 80% by 2050, it is clear that direct action must be taken to reduce the emissions from buildings. This article focuses on commercial buildings, which are a clear target for such action and new measures have been recently introduced which target new buildings and for the first time, the stock of existing buildings.

Energy Performance Certificates (EPCs) came into force on the 1st of October 2008 under the European Union Energy Performance of Buildings Directive 2002, and are a legal requirement for almost all commercial buildings when they are completed, modified, sold or leased. EPCs are intended to act as a catalyst for improving the performance of a building as they must be provided in the sales literature for the property. Potential tenants can then make a value judgment on a building based on the Certificate, putting pressure on owners and landlords to manage performance improvements in their properties before putting them on the market.

What is an EPC and what does it show? – the EPC shows the energy efficiency of a building as an Asset Rating in bands from a more efficient ‘A’ rating to a less efficient ‘G’ rating and also gives a numerical indicator of energy performance for each building based on its standardised use.

When do I need an EPC? – an EPC is required on the construction, modification, sale or lease of a commercial property that is greater than 50m². There are some specific exceptions that are detailed in the Government’s guidance documentation.

What is involved in producing an EPC? – producing an EPC for a commercial or ‘non-domestic’ building is a rigorous process which requires the creation of a software model, from which its energy performance can be derived. Data for the building is captured from a site inspection as well as from drawings, specifications and manuals. A zone matrix is then created for each floor which takes account of zone activity, heating, cooling, lighting & ventilation. This, together with the shape and size of each zone and floor are entered into the software model, together with details of the construction fabric of the building. The energy model is generated using SBEM – the Simplified Building Energy Model which is a tool approved by the Government for this purpose. SBEM produces the EPC & rating for the building as well as a standard recommendation report on how the building rating could be improved.

“EPCs determine how efficient a property is and provide an Asset Rating that owners and occupiers can use to manage performance improvements”, explains Richard Nussey of L’atelier. ” Clients are already installing more energy efficient lighting, better insulation and modern boiler systems that improve their building efficiencies and therefore their Asset Ratings. Our customised client reports show specific improvements in terms of expenditure per kilogram of CO² saved and their expected payback. Better published ratings translate into higher perceived value for tenants and owners in a market which is ever more conscious and selective over environmental issues. Better ratings will also translate into shorter void periods and higher rental income or sale prices from Clients so there is really no downside in the medium term.

The next stage is to implement low and zero carbon technologies to take the building stock to another level of sustainability and, with fuel costs rising, the viability of these improvements can only become easier to justify in financial terms”.

What are the penalties for not having a Commercial EPC? – Fines for the failure to produce an EPC can be anything from £500 to £5,000 depending on the property’s rateable value and a commercial EPC will still be required before you can lawfully complete the sale or lease of your property.

Where do I get a Commercial EPC? - an EPC must be produced and lodged on to the central database by an Energy Assessor who is a member of a Government approved accreditation scheme.

What is a Recommendation Report? – a Recommendation Report is produced as part of the EPC process and is a computer generated document listing potential changes that, if made to the property, could improve the asset rating, based on the data input during the EPC modelling process. An Energy Assessor can provide advice and guidance on how best to improve asset ratings, following an assessment of the property.

Why do you need an EPC? – with an EPC, the potential buyers or tenants will be able to get an impartial report of the energy use and the likely costs of the existing building. This makes it easier to compare the likely energy costs of occupying seemingly similar buildings. A commercial EPC will also allow sellers and landlords to gain an insight into the areas where energy performance and efficiency could be improved within their property.

I wish to let a single floor of my building – do I need an EPC? – yes you do and an EPC can be provided for just that part of the building, provided it is constructed ‘for separate use’.

I am selling a building with a retail unit on the ground floor with a flat over it. Can I have a single EPC for the whole building? – yes, but only if access to the flat is via the retail unit; if there is separate access to the residence then two EPCs will be required, one for the retail unit and one for the flat.



Quick House Sale

Reston, VA — Calkain Companies announces that it has formulated its newest division, Calkain Opportunity Services (COS). With a daily influx of conversations on how to maximize value of its client’s property in the current market environment, Calkain felt it was important to formalize its procedures on how to handle this specific real estate dynamic. With the new division comes a new hire within the multidisciplinary commercial real estate firm. Todd Harrison, COS’s Managing Director, will personally oversee the new division and its operations. Todd is a veteran commercial real estate professional having served in leadership positions for leading consulting, due diligence, brokerage and real estate investment firms. He has been involved in over $2 billion of commercial real estate pertaining to analysis, underwriting, due diligence and transactions in his tenure.

Calkain feels that the growing number of potential debt restructurings, litigation from soured transactions and failed investments will see an onslaught of needs from investors, sponsors, attorneys and appraisers to have an impartial third party evaluate the value of assets and help determine a realistic exit strategy. Jonathan Hipp, Calkain Companies President and CEO, commented, “For those individuals involved in less than ideal situations, Calkain will be able to formulate a plan on how to exit their challenging situation with realistic and fast results. Therefore, we are thrilled to have Todd on board. His diverse background is particularly wellsuited to the operations of this new division.”

There is an obvious increase in the number of net leased assets defaulting on their loan commitments and, subsequently, banks taking control of the property. Even stabilized, net lease assets may have a caveat that will force a non-traditional approach to relieving the challenging situation. Hipp continued, “With the previous several years of aggressive prices paid for net leased investments, many landlords took on debt that may be maturing in the near-term. COS is set up to evaluate options for the landlord and help with determining several options for their investment.”

Harrison commented, “There is no other service like this for net leased assets. Calkain is nationally known as a leader in the industry for this specialized property type and we feel that we are best equipped to handle the deluge of situations that have been presented to us in recent months.”  www.calkain.com

COS will work with landlords, banks, attorneys, multimember ownership situations and a plethora of other stakeholders involved in any one asset or portfolio of assets. IRC §1031 Tax Deferred Exchanges, Debt Work Outs, Restructuring & Reorganizations, Litigation and Dispute Resolution, and Expert Witness Litigation Support will be the focus of the newly formed division



Quick House Sale