Commercial Real Estate FAQs

Kelleher & Sadowsky is the largest privately owned Commercial Real Estate firm in Central Massachusetts. With market knowledge spanning over 35 years, no one understands the Worcester market like us. The numbers don’t lie – with over 1,000,000 square feet leased annually and $200,000,000 per year in transaction volume, Kelleher & Sadowsky stands out above the competition.
Kelleher & Sadowsky specializes in every core property type. In the past three years, K&S has leased well over:
1,200,000 square feet of office space
1,800,000 square feet of industrial / warehouse space
200,000 square feet of retail space
165,000 square feet of medical space
All our brokers goals are to find the best possible space for you, and with their experience in each property type as well as this market, there’s no better team to find your dream space.
Kelleher & Sadowsky have been extrh3ely involved in the development of the Worcester and Central Massachusetts market over the years. Since the company’s inception in 1981, we have been dedicated to building relationships and adding value to the opportunities clients present in our market. Leasing over one million square feet in 2018, our team knows this market. Don’t just hear it from us, hear it from the people we’ve worked with in the past:

“Nobody knows the market like Kelleher &Sadowsky and they have proven over and over again that sophisticated real estate brokers do exist in Central Massachusetts. I highly recommend the team at Kelleher & Sadowsky.”
Steve Goodman
GFI Partners

Kelleher & Sadowsky uses various programs to help us keep tabs on the market and track our data. More common programs that we use are CoStar and LoopNet, both of which are national real estate databases that we work closely with. We also have an intensive internal database to help keep our records and client data secure.
The brokers at Kelleher & Sadowsky will work tirelessly until they have found the right space for our client. We refuse to settle for a workspace that does not completely satisfy your needs. Our extensive background in this market on top of the relationships we have built gives us the ability to find a space that suits your needs.
At Kelleher & Sadowsky, we use various resources to help our clients find the best space for their needs. We have access to programs and market information that a client looking for a space does not. We understand that locating a spot for your business can be stressful, and our purpose is to take care of the nitty gritty and make the process of finding a space that suits your needs as easy as possible.

Commercial Lease FAQs

There are multiple types of commercial leases. The most common are gross, modified gross, and triple net. A gross lease means that all expenses associated with the property are paid for by the landlord. The only expenses tenants must worry about are utilities and janitorial services. A modified gross lease means that the rent can contain property taxes, insurance, etc. These are negotiated between tenants and landlords as what will be included in the lease. Finally, a triple net lease, or NNN, means that tenants pay all or part of the property taxes, insurance, etc. These expenses are on top of rent, utilities and the other tenant expenses.
Of course! There are an abundance of clauses relating to lease length, rent costs, what type of lease it is, termination, etc. At Kelleher & Sadowsky we will negotiate for the best rates and terms to suit your needs.
Depending on what you want to do with your space, there can be restrictions on how you use it. For example, in certain leases you may not be allowed to add retail space into your office space and doing so could lead to eviction. It is important to relay your intentions to a Kelleher & Sadowsky advisor so that they can make the most informed decision with you.
Most commercial leases span from 3-5 years, depending on the companies needs. How long your lease lasts impacts the terms of the lease, such as how many months of free rent you may receive. There are many factors that your lease length will impact, and your Kelleher & Sadowsky broker will thoroughly explain what they are and the role they play in your lease.

Understanding Appraisals & Inspection Reports

An appraisal is an unbiased valuation of property. Appraisals are often used for taxation purposes or to understand the market value of a property.
Market value is the highest estimated price that a buyer would pay and a seller would accept in an open and competitive market.
The role of the appraiser is to determine an unbiased opinion of the value of a property.
An inspection of a commercial property usually checks what will have to be done in the next few years. There are major parts of a property that are commonly checked- electrical, plumbing, heating and AC, roofing and structure of the building. Inspections help determine potential upcoming costs.
An inspection will help inform the buyer of any potential future costs. This protects the buyer from purchasing a property without knowing expenses that may come up. It can be hard to know the faults in a buildings structure or wiring, and an inspection will figure those out.

Office Space FAQs

Every building contains different amenities depending on the building class. Class A office space can have gyms, cafeterias, and shops all at your disposal. The rent rates in these properties will typically be higher as the spaces have more to offer. In a space like a Class C warehouse, these amenities will not be available. At Kelleher & Sadowsky, we will find the best space for your needs no matter your business.
Depending on your office culture, it is important to find the right space for your needs. If you value a more reserved office space, with individual offices and cubicles, you need a space that can support that. If you prefer open space with ping pong tables and couches, you need to find a more modern and updated space. Kelleher & Sadowsky brokers can help you figure out what space would best suit your company needs and then find that space for you.
Parking plays a pivotal role in choosing the right office space. If you have limited public transportation, and a large portion of your employees rely on driving to work, you need the proper amount of parking spaces available to support them. Most spaces have an employee to parking spot ratio that explains how many spaces you have allotted for your company. If you’re moving your space, this number plays a crucial role in how your employees quality of life changes when you move and how accessible your space is.
Tenant improvements, also known as TI, are referenced to in the lease and give the tenant a sum of money, usually as a $/square foot price, that they can use to alter the space to fit their company. This allows the tenant to improve certain aspects of their space that may be lacking. These terms can be negotiated depending on the length and price per square foot of your lease. If you need to keep costs low, it may be better for you to find a space already outfitted for your needs. If you have a larger budget, you may be able to build out a space to your liking. It is important to note that a TI allowance can restrict what a tenant can spend their money on.
CAM, or common area maintenance charges, are billed to tenants by the landlord for work done in the common areas of buildings. These bills support the expenses that landlords pay to keep the building running. Since these areas, such as parking lots, are shared by all tenants, they all pay a portion of the costs to maintain them. The charges are defined in individual leases which outline what operating costs the tenant must pay. One example of a CAM charge seen in Massachusetts is the cost of snow removal.
CAM costs vary based on individual leases and the common area of your building. Most tenants will have to pay CAM expenses on top of their rent in order to support the maintenance of the building they reside in.