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Apex Eye Offers a “Visually Appealing” Office Space

Schueler Group completed construction of a 10,000 SF medical office space for APEX Eye at their development located off Tylersville Road at 6150 Radio Way, in Mason, OH.

“Dr. Edward Meier, our client and a highly-acclaimed ophthalmologist, has high standards for his practice and for his patients. He wanted the new facility to have the elements that people are accustomed to in residential settings, but in the commercial environment,” Dan Thomas, Schueler Group Project Manager, said.

This is something that is unique, but also becoming more common. Often the look and feel that is in our homes is something that clients would like to see reflected in their workplaces. In order to replicate this takes creativity and familiarity with materials. Dan Thomas has worked in the construction industry for over 30 years.

Mark Hail, Schueler Group Superintendent managed the Apex Eye project on site.  Mark has over 25 years of construction and property management experience.  Dan and Mark were pleased to apply this experience while working with KBA Architects through this process and appreciated the trust Dr Meier and his team placed in the Schueler Group.

“We are pleased when we complete a project like Apex Eye as it truly demonstrates impeccable work, stellar design and a client who understood how these vehicles would impact his own business. It has been an honor to work with the team at Apex Eye.”Thomas said.

Dan and Mark came to the project with vast and diverse backgrounds. Their experiences in all aspects of the design build process, construction management and specialization with working in a fast-paced environment brought all components of Apex Eye in on time and on budget.

“Having Dan and Mark on my team makes all of the difference, and truly showcases the Schueler Group commitment to our clients,” stated Kevin Scott, President of Bunnell Hill/Schueler Group Construction Company.

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Southwest Ohio continues to be HOT

Greater Cincinnati (South into Kentucky and North past Lebanon, Ohio) continues on a growth trajectory. The area has become known for high inventory for industrial interests which gives businesses location choice as well as a high livability quotient for the workforce.

According to Forbes (April 2018)

Forbes sites that Greater Cincinnati has a share of gentrified and new housing that provides options for people of all ages to live and to work.

Combine this with location for businesses to prosper, and an otherwise healthy economy, makes this region ripe for continued growth. Cincinnati is second only (in Ohio) to Cleveland for industrial inventory. Since 2016, 2.8MM square footage has become available. Amazon distribution centers and other high visibility retailers have chosen to locate in the region. Amazon has located their largest distribution facility here, added jobs and contributed to the local economy.

Those who choose to locate in the area are currently most drawn to I-75 North which is a pathway to land listed and managed by Schueler Group. Schueler Group continues to provide organizations prime sites via our 20 business parks adjacent to both the I-75 and I-71 corridors. Other areas that continue to be hot include the Northern Kentucky/CVG submarket – near the airport where Schueler Group manages over 235 acres across 4  business parks.

This surge has encouraged both national and global investors to be attracted to the region. Schueler Group continues to be at the center of much of this development.

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Why history matters: Understanding CRE market trends and predicting the future

Mike Schueler President and CEO Schueler Group

I have worked in the construction, development, land and real estate business for over 40 years. In that time, the commercial real estate business has witnessed the highs and lows of the economy and had a front row seat to growth, trends and market challenges that we have confronted. One must not look far to understand that the economic lows, while they are a challenge, that often result in vibrant recovery as well.

Our organization was founded in 1935 during the middle of America’s Great Depression which ran from 1929-1939. In fact, a real estate boom had occurred in the 1920’s prior to the stock market crash of 1929 – followed by many years of challenge. Our founder, George Henkle, as a young man, saw an opportunity to help out the farming community and began a business as a farm brokerage.

The land that comprises Butler and Warren Counties was farmland and Henkle understood that by working with farmers, an opportunity could be fostered for all. His early transactions included the land upon which King’s Island now sits. Henkle ultimately had an early vision that Cincinnati and Dayton would become one large combined market – which he termed a “Super City”.

At this time, the area was farmland and the Cincinnati “suburbs” were generally south of Norwood.

Fast forward to today, and his vision is nearing reality.

By understanding the dynamics of market downturns, our business can forecast and adapt our vision and plan for the future. This requires an understanding of the history as well as an optimistic view of the future. This requires planning, perseverance and committed work teams.

Most businesses continue to endeavor for the long haul. While many would like the “get-rich-quick approach,” I like to say that we are in the “get rich slow” business. While the former is most appealing, the latter is the more realistic.

The dot.com boom (and bust) and the more recent start up boom, likely instructs us that most individuals and business organizations do not partake in the “get-rich-quick.” They must accept that success demands hard work, long hours and focus are what makes for solid business planning.

It is critical to focus upon lifestyle trends as well as generational activity. 2018 and the years ahead are very much about the impact that the baby boomer generation has on the overall economy. As this generation ages, they look to where they will live and retire. Both of which heartily impact the development business.

The millennials and generations preceding them have their own ideas about their lifestyles which includes where they will work in proximity to where they live. This impacts transportation, location of their homes (and are these apartments or houses?) and how they spend their leisure time. It also includes wellness, overall individual health, how they consume (on-line versus malls) and what they do for leisure.

And the business that I run has rapidly led the way in development of the industries that support both the lives of the baby boomers and more recent generations. It is up to us to have a vision and to know where American lives are headed. Much as our founder, George Henkle did.

The 35-mile region he addressed as a “super city” in the 1970s is rapidly approaching reality. The area’s cities have expanded their borders to include shopping centers, dining options, hospitals, entertainment centers with apartments near-by, and growing residential communities.

As we move through 2018, I am often asked, “What is next and what does the longer term future hold?” We stay heavily involved with the Urban Land Institute (ULI) and their research (published in late 2017, Patrick Sisson, www.curbed.com) reviews generationally what cohorts will likely require in their home and work places. It is key that our industry remain flexible.

From where I sit, we rely on the masters at places such as ULI and on our own expertise. While none of us read tea leaves, those of us who have “gone the distance” have a good sense of what is next. We know for sure that our developments in the future will continue to be about providing a lifestyle experience that includes green space, clean bodies of water to enjoy leisure activities, viable health care organizations and living arrangements that span generations.

We also know that owning land in the most desirable areas will continue to give organizations such as ours, the competitive edge. Our focus will continue to be on what we have learned from history, the forever changing marketplace, combined with sound judgement and vision.

This article was featured on the Cincinnati Business Courier website.

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Breaking down the differences between commercial leases

Rob Blundred
Commercial Sales Associate
Henkle Schueler and Associates

Locating the perfect commercial space to house your business can be exciting. You begin envisioning the business living and growing in your new space. But before you can start moving in, you need to agree and sign a commercial lease.

Leases can be tricky, confusing and overwhelming. With help from research tools from 42 Floors, we’ve outlined several different types of commercial leases. The three most common are net lease, absolute triple net lease, and modified gross lease. Each comes with challenges and benefits.

Net lease

The benefit of a net lease is that the landlord can charge a lower base rent price. However, along with the base rent the tenant is responsible for an “additional rent fee” which covers the operations and maintenance of the property. These costs can cover real estate taxes, property insurance and common area maintenance (CAM) items. The CAM fees cover the landlord costs for janitorial services, property management fees, sewer, water, trash, landscaping, parking lot, fire sprinklers, and any shared area or service.

There are several types of net leases:

  • Single net lease (N lease). In this lease, the tenant pays base rent plus their pro rata share of the building’s property tax (meaning a portion of the total bill based on the proportion of total building space leased by the tenant). The landlord covers all other building expenses. The tenant also pays utilities and janitorial services.
  • Double net lease (NN lease). The tenant is responsible for base rent plus their pro-rata share of property taxes and property insurance. The landlord covers expenses for structural repairs and common area maintenance. The tenant once again is responsible for their own janitorial and utility expenses.
  • Triple net lease (NNN lease). This is the most popular type of net lease for commercial freestanding buildings and retail space. The tenant pays all or part of the three “nets” – property taxes, insurance, and CAMS – on top of a base monthly rent.

Absolute triple net lease

The absolute triple net lease is an extreme form of an NNN lease where the tenant absorbs all of the real estate risk and responsibility. The tenant is ultimately responsible for all building-related expenses and repairs, including roof and structure.

Modified gross lease

The appeal of a modified gross lease is the tenant has one set amount to pay each month. In a modified gross lease the base rent and “nets” (property taxes, insurance and CAMS) are all included in one lump sum payment; excluding utilities and janitorial services, which are typically covered by the tenant.

The benefit of a modified gross lease is their flexibility. They are generally an easier agreement to make between the landlord and tenant. The risk is if insurance, taxes or CAM increase or decrease the cost or savings is passed on to the landlord.

Net leases will always have a lower base rent rate. When comparing a net lease space to a modified gross lease space be certain you are calculating all your additional rent expenses so you can make an accurate comparison between the lease spaces.

Whether finding your first commercial space or moving a growing business into a new home, negotiating a lease can be challenging. The most important advice is to make sure to read through the commercial lease diligently and carefully. Include all your costs for a space (rent, additional rent, utilities, and trash). Market and area trends tend to keep similar spaces at comparable lease rates regardless of the lease type. With proper lease understanding you can move confidently into your new business home.

This article was featured on the Cincinnati Business Courier website.

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How the Realtor Code of Ethics protects both clients and industry professionals

Brad Knapp
Broker
Henkle Schueler and Associates

As in other professions, real estate agents are sometimes looked upon with apprehension. Several years ago, I determined that it was up to us, as practitioners, to improve our reputation and ensure integrity through the REALTORS Code of Ethics. The Code of Ethics sets us apart from other professions and encourages cooperation between brokers and agents, which in turn benefits the consumer.

Initially, I became involved in ethics and professional standards thanks to Steve Casper, a long-time Cincinnati real estate professional, who appointed me chairperson of the Ohio REALTORS Professional Standards Committee, the year he served as association president, in 1988. Since that time, I have continued my involvement in professional standards at the local, state and national levels. In 2014 I was honored to serve as the National Association of REALTORS’ (NAR) professional standards chairperson.

I am proud of the fact that Ohio, way back in 1991, was one of the first states to require real estate licensees to attend a three-hour course on the Ohio Canons of Ethics under the Ohio revised code every three years without exception. As Realtors, a real estate professional who is also a member of a local Realtor association, we are also required to attend a course on the Code of Ethics every two years.  These classes are to ensure real estate professionals are maintaining and practicing the conduct and values established in our ethics and professional standards.

Our Realtors organization, which was founded in 1908, adopted basic rules of professional conduct in business affairs in 1913. Although changed and greatly expanded over the years, it still governs our conduct toward clients, the public and fellow real estate professionals.

While it might sound lofty, the preamble to the 17 articles of the Code of Ethics speaks volumes as to our duty, which includes something as basic as the golden rule.

“Under all is the land. Upon its wise utilization and widely allocated township depends upon the survival and growth of free institutions and of our civilization. REALTORS should recognize that the interest of the nation and its citizens require the highest and best use and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industry and farms, and the preservation of a healthful environment.”

The articles themselves (that support the preamble) address:

  • Representation of buyers, sellers, landlords and tenants.
  • How we must behave regarding honesty, integrity and cooperation with other brokers.
  • The articles explain how to avoid conflicts of interest, proper allocation of funds and receipt of compensation.

While the articles go into extensive detail, what it essentially addresses is trustworthy behavior. Also, our Code of Ethics contains the most extensive civil rights language regarding race, gender and sex discrimination. Our trade association has made great strides in this area, and that is something in which we can unite.

I am sometimes asked how to know if/when an individual or organization is working with the right agent or broker. It is simple, listen to your gut and ask around. Know that we, as an industry, police the behavior of our members.

Be comfortable with your agent and ensure that they explain real estate law and procedures upon the outset and that the Consumer Guide to Agency is presented and explained.

We are right now in a seller’s market. Inventory is very low and people are moving less frequently. I read in a recent article the average homeowner is living in their home 10 years, as opposed to six, the average just a few years ago. Many seniors and baby boomers are staying put, which says a lot about demographics. As they say “70 is the new 50.”

Often there are multiple offers placed on a property. This is the time for buyers, sellers and agents to be most vigilant. It is also the time for buyers and sellers to have in-depth strategy discussion with agents. We like to say that these times are about location, price and condition.

Due mainly to educational requirements and the cost to obtain and maintain a real estate license, I believe the quality of people now entering our business has much improved over the past few decades. Most importantly, Realtors understand the importance of self-policing through the Code of Ethics. I must also give a great deal of credit to the dedicated professionals who work for our various Realtor associations, such as the Cincinnati Area Board of REALTORS.

I work in a profession of which I am proud. I have been honored over the years to work with people locating their home, their new business location or a large industrial property. As humans, we make our most important decisions around both family and work. Place those important times with an agent you can trust.

This article was featured on the Cincinnati Business Courier website.

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PetSuites expansion shows how important pets are to us

Bill Chester Executive Vice President Bunnell Hill Development

Social media tells us that people are crazy about their pets. This is evidenced from Facebook to Instagram – with many pet posts surpassing those of celebrities. Millennials and baby boomers are the two biggest age groups for pet ownership – with millennials just now entering their prime years.

Millennials, and those generations following them, are waiting to have children, choosing to live in more urban environments, and require parks near their living environments. Often these parks are needed so they can walk their dogs. Once the nest is empty from the grown children, baby boomers desire to expand into animal ownership, and much like millennials, they seek optimum care for their furry friends.

American Pet Products Association (APPA) cites that since the mid-1990s Americans have spent close to $70 billion each year on their pets. Currently there are 54.4 million U.S. households with dogs, and 42.9 million owning cats. Many pet category trends focus on health and wellness for pets, closely following human trends.

Public green spaces boast running areas for dogs with watering areas, and are highly pet friendly. People are investing in the health and well-being of their pets. Many have pet health insurance plus pet clothing, toys and gourmet cuisine. Animal care is expanding into pet hospitals and overall pet care.

Another trend, indicated by APPA, is the rapidly growing number of pet households increases the need for quality pet sitters and day care.

A national company is jumping to the fore-front with quality boarding, day care and grooming for pets. PetSuites Pet Resort & Spa has been in business for 15 years, expanding their locations across the U.S. They are specialists in boarding, day care and grooming for cats and dogs.

PetSuites PetResorts & Spas boasts while a safe, healthy and tasteful place for the family pet to stay, the stay is only the beginning of the story. Canine guests enjoy large outdoor play areas 365 days a year. Fresh air and sunshine keep playtime exciting. An indoor play area is a perfect oasis during inclement weather. Grooming and bathing is offered seven days a week for all breeds of dogs. Premium spa packages include the latest treatments such as blueberry facials and deluxe de-shedding to leave pampered pets looking good and feeling great.

This type of care takes all that is relevant to the world of the family animal and expands it into total animal care, feeding and a warm and loving place to stay. While PetSuites originated as a smaller business, their rapid expansion serves that this is not only a trend, but clearly a marked way of life.

Schueler Group’s Bunnell Hill Construction and Development teams have been selected as partners to expand PetSuites locations in the Houston, Texas region. Construction on the first site began in February with additional facilities planned.

This article was featured on the Cincinnati Business Courier Website.

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5 things to look for when selecting a CRE company for your project

Mike Schueler President and CEO Schueler Group

Trends and ups and downs are long part of the land and development business. This industry requires sound investment, patience and guidance from folks who have been there before and best understand your own business objectives.

Our own industry leaders must pay attention to the overall economy, stock market volatility, interest rates and investment in the overall real estate market. This view should be combined with development trends in sectors such as retail, home building, commercial and industrial. It should also take into account health care organizations as well as higher education institutions; to name only two of many who drive the economy.

How should a company make a selection decision when determining with whom to conduct business — or simply put, when determining who is going to help you to select your site, construct your facility and manage what is likely your largest investment?

1. Work with an organization who has been there before.

Our economy will always have ups and downs. This is as extreme as the Great Depression and the Great Recession. It also includes real estate booms and busts. Though many folks predict these cycles, no one knows for certain. Work with the people who guard against the highs and lows and are proven to use sound judgement. Work with those who have gone the distance and did not shy away from a challenging economy.

2. Work with an organization who owns and manages considerable land.

Your site, location and the quality of the parcel will be one of your most significant decisions. While you likely have a gut feeling about where you want to be – you likely have not studied the variances of the land use and affordability of each location. Work with a company that both owns and brokers parcels and can be truthful and direct about their knowledge.

3. Work with an organization who understands the international panacea and the global marketplace.

Whether you are a domestic business or located out of the country, it is important that your choice of partner knows how world events will impact your future. This can only happen when you work with an organization who has spent significant time and energy understanding overseas markets. Your partner should be steeped in this knowledge.

4. Work with a partner who has demonstrated that a single point of contact looks like.

You and your senior team are busy running your business and staying focused. This means that your real estate partner should be able to answer all of your questions and take your project from start to finish. For example, our company fully developed the new corporate banking center for LCNB in Lebanon, Ohio. This included land, construction and development. Steve Wilson, former LCNB chairman, said he sought a partner who was able to provide all services necessary “under one roof.”

5. Ensure that there is a personality fit.

You will work closely with your partner. This means interaction and trust. It also means that you will often defer to their decisions. Get to know these individuals, check references and know that this is a marriage.

As you interview partners, please consider our team. We have been there before, have persevered and believe that your future is our future.

This article is featured on the Cincinnati Business Courier Site.

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Predicting Greater Cincinnati growth through 2018

Jeff Eichhorn, Executive Vice President of Henkle Schueler and Associates

Areas and the region surrounding Greater Cincinnati are in a continuing growth movement beyond the I-275 outerbelt.

Northern Kentucky is a prime and hot market. The Greater Cincinnati/Northern Kentucky Airport makes that part of the region appealing. The area is blessed with a centralized transportation region that serves much of the Midwest.

As the Greater Cincinnati-Northern Kentucky International Airport continues to deliver good news to the region, we will most certainly see demand for the land around it as well as the business opportunities that come with this growth. This means that while we witness the likes of Amazon, we also witness those organizations who depend upon and service Amazon.

Butler and Warren Counties in Ohio continue as a high-growth area for workers, businesses and residents. This 45-mile stretch along I-75 remains in a rapid growth and development pattern, connecting the Northern Cincinnati region toward Greater Dayton.

Retail continues to be a question mark in the industry as consumer behavior and options have adjusted to adapt to the ease of home delivery. The retail segment is in transition and will not completely go away, but will differ from what we have seen.

Amazon has impacted the retail industry. Trends indicate that retail will still “live,” but more for the unique experience. It is incumbent upon the retail industry to creatively generate the experience, and for land developers to offer parcels that add richness. It really seems to be about lifestyle, plus ease and experience for the end-user, the consumer.

The millennials who will be quickly the prime buyers demand not only more for their money, but great value for their time. Trend watchers describe this generation as smaller spenders and more discerning. It is about their lives.

Northern Kentucky industrial areas will continue to be attractive, with tax cuts available and what we all know to be the “Amazon effect.” We also are witness to what millennials and generations following them really want and expect.

I have worked in commercial real estate for 13 years. During that time, we have witnessed trends, strong economic indicators and the serious 2008 downturn. The state of commercial real estate is always in flux, but has some strong components as we enter second quarter.

This article is featured on the Cincinnati Business Courier.

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New Agents Bring New Ideas

At Henkle Schueler, we pride ourselves on the people who love to work for us and in serving clients for years and years. This is the family that comes to us for their first home and then returns to us later on.  Customers come back when they are ready to move to a larger home, downsize or make a life change. And often to the same agent. This tells us that we are doing our jobs well.

At the same time, we also love to incorporate new agents with new ideas into our team. Radona Scott is just that person. She joined the team with a strong background in sales and intuitively understood that people who come to us either to buy or sell their home, are people that only want to work with someone whom they trust.

Radona is a lifelong Greater Cincinnatian and grew up in New Richmond. She and her husband live in Mason with their three children. With Radona’s oldest in college and the second soon to follow, she decided to make the leap back into a full-time career.

Radona’s free time is spent watching her son play sports and shopping with her daughters.She has also been involved with her church and some fund raising.Radona’s high energy level will be perfect for our residential team.

Importantly, she loves the residential market including home improvement and assisting families locate their dream home. She started her career showing custom homes and launched a home sales business seven years ago.

While Radona will focus her residential interests in Mason, Lebanon, West Chester, Kings Mills, Liberty Township and New Richmond, she is eager to take customers to the community that makes the most sense for their own interests and lifestyle.

With a communications background and passion, she firmly believes that she is able to make people comfortable and understand what might work best in any situation. We welcome an energetic new agent to our team and look forward to our customers learning more about her.

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Henkle Schueler: Our Agents Treat You Like Family

Crystal Duncan has been a professional residential Realtor since 1998 and we are fortunate that she has called Henkle Schueler Realtors, the residential arm of Schueler Group, her home for the past six years.

To her clients, she is family. Many come to her for their first home and return when it is time to sell and purchase their next family home. Crystal works in Clinton, Warren, Highland, Clermont, Hamilton and Montgomery Counties. Her breadth and depth into these markets is significant. Not only does she sell single family homes, but often farms and farm land. Land has been a long time component of Schueler Group’s portfolio.

When asked what it is like to work for Henkle Schueler, Crystal explains, “It is like family. We treat one another like family. Daryl (who runs the residential office, located in Lebanon, Ohio adjacent to the historic Golden Lamb) motivates us. He provides training and support. People at our office look out for each other.”

“Importantly, the company pays great commissions. And when I am working with the buyer and the seller, I lower the commission to make it as painless as possible for the client.”

Crystal has a home staging business, called RealeStaged. This makes the home presentable and ready to sell. Most of her listings sell within two weeks – a testament to her commitment, know-how, understanding of the market and the importance of proper staging.

And Crystal, while successful, has a thriving family life. She and her husband raised four children and he is a homebuilder. In her earlier years she explains that “he built them and I sold them.”

She also laughs and explains that she loves to travel, exercise and shop. Her shopping is about items used in staging that improve the look and feel of the homes she is selling.

When asked about the experience in working with her, she says “I want to keep it fun. It is a stressful time. Listening to the clients is most important.”

Crystal, like other members of the residential team are committed to the buyer and the seller. Importantly, she has the support of Schueler Group with our long tenure of understanding the market and the people in it. To learn more, please call us.