Monthly Archives: February 2014

Value added Commercial Real Estate Services based in Tampa | Statewide Emphasis | National Network |TMC offers a unique blend of expertise and go to “make it happen” results

TMC The Mahr Company shares: Proud of our city/region. Proud to be based in Tampa Bay; with its quality of life, business opportunities, and the platform Tampa Bay provides us, as we slide to market variances in your service all the while maintaining our commitment to Excellence, the Highest Level of Service and Responsiveness:
Your Goals=Our Goals


Value added Commercial Real Estate Services based in Tampa with a Statewide Emphasis | National Network |TMC offers a unique blend of expertise and go to make it happen results.

Change Is A Constant – Office Space Requirements and Functionality


Office space is smaller than ever, and getting smaller still, according to research from CoreNet Global. Of the 465 companies surveyed, 24 percent said their staff had less than 100 square feet of workspace to call their own, while 40 percent said space would shrink to that level by 2017. Workspace has shrunk from 225 square feet in 2010 to 176 just four years later.
A recent infographic from document management software company Contentverse compiles stats on our ever-declining workspace. A few highlights :
•In the 1970s, American companies planned on at least 500 square feet per worker.
•Some tech firms have worker-to-space ratios of seven workers per 1000 square feet.
•Other companies have workers share flexible work stations. This is calling “hoteling,” as workers check in to the office and get assigned to a workspace for the day.
•Telecommuting is on the rise, as well, with over 5 million people working from home on a daily basis.
•Companies who renew their leases often cut the square footage of their space. According to commercial real estate information provider CoStar, the average square footage of commercial rentals fell 7 percent during the past 10 years.
What’s to blame for our shrinking workspace? The desire to save money and the corresponding popularity of open-plan offices are part of the picture. But the other side of the story is more positive: thanks to smaller and more portable electronics, we just don’t need as much space as we did in the older days.

2014 As we approach the 2nd qurater of 2014 how are you positioned
TMC The Mahr Company is available to assist you in positioning your business model in 2014. As we approach the second quarter of 2014 how are you and your business model positioned to take advantage of the emerging trends in commercial real estate? We have the skill sets, market knowledge, experience, energy and determination to take a proactive approach to achieve your goals. If you are not engaged in the game, the sidelines only offer a spectator’s view.

Finding Solutions through Creative Problem Solving

How Many Squares are in the picture depicted below?

Most popular answer is 24…

TMC-The Mahr Company knows there are more..

Let us find solutions for you where you see there is a problem.

You stay focused on what you do best, run your business/practice. TMC will provide you with options and solutions.


 Based in Tampa, primarily serving Florida markets, The Mahr Company offers a unique blend of expertise and disciplines. 
“Value added Commercial Real Estate Services”  
TMC utilizes years of experience and professional expertise to provide you with solutions to your real estate matters.   You remain focused on your business/profession with no diversions from a transaction you may only seldomly encounter.   We become a member of your team likened to your business’ Senior Vice President of Real Estate. 

In addition, TMC can provide the following services:  
User Representation for Office, Commercial, Medical, Legal/Attorney & Investment Properties 
Landlord Representation for Office, Commercial, Medical, Legal/Attorney & Investment Properties 
Acquisitions and Dispositions 
Land and Site Selection 
Real Estate Advisory and Consulting 
Real Estate Investment Sales & Marketing 
Asset Value Enhancement 
Special Projects for Clients 
Equity Positions for Tenants through Leasing 
Broker Opinion Of Value (for Lenders, Asset Managers and Owners) 
Expert Witness for Litigation regarding Leasing and Commercial Real Estate matters 
Broker Price Opinion BPO 

Finding Solutions through Creative Problem Solving

CRE Demand Cycle

TMC The Mahr Company Shares: Most feel that the recession officially ended back in 2009 and the economy has been growing ever since, yet it still feels like a recession to some people. Why is this and how long will it take to get back to normal? More importantly, what does this mean for commercial real estate? The CCIM Institute has a demand cycle flow chart that illustrates how employment drives demand for commercial real estate. As shown below, demand for commercial real estate is directly or indirectly driven by employment growth. Employment growth drives population growth and disposable income. Office and industrial demand is driven by employment growth. Industrial, residential, and hospitality demand is driven by population growth. And hospitality and retail demand is driven by disposable income. Contact us directly as to how we can assist you to best position your business/professional model to take advantage of these trends..

Understanding Cash on Cash Return in Commercial Real Estate

Cash Fow

By: Robert Schmidt
Cash on cash return in commercial real estate is important when you are evaluating investment real estate transactions. What is the cash on cash return and how do you calculate it for a commercial property? What are the limitations of using this method? In this article we’ll tackle these questions and also provide some detailed examples of the cash on cash return.

Cash on Cash Return Formula

Before diving into some cash on cash return examples, it is important to have a sound understanding of exactly what the term means. So, let’s start with the basics. First, here’s the cash on cash return formula:


As shown in the cash on cash formula above, the cash on cash return is a simple measure of investment performance that is calculated as cash flow before taxes divided by the initial equity investment. The cash flow before tax figure for each year is calculated on the real estate proforma, and the initial equity investment is simply the total purchase price less any loan proceeds.

Cash on Cash Return Example

Next, let’s take a simple example to illustrate the cash on cash return. Suppose you are evaluating an office building with an estimated Year 1 Cash Flow Before Tax of $60,000. Also, assume that the negotiated purchase price of the property is $1,200,000 and you are able to secure a loan for $900,000 (75% Loan to Value). What’s your cash on cash return for year 1?


The calculation itself is pretty simple – your cash on cash return for year 1 would be the Year 1 cash flow divided by your total cash out of pocket, which equals 20%. So what does this simple measure of investment performance tell you? Using only the figures above, the cash on cash return tells you that your year 1 return on investment is 20%. This of course assumes that your initial equity investment figure and also your cash flow projection is correct.

Cash on Cash Return Limitations

The cash on cash return is a simple measure of investment performance that is quick and easy. It can be a good starting point for quickly filtering out potential investment properties. But don’t be fooled by the many limitations of the cash on cash return.

Consider the following series of cash flows:

cash on cash return limitations

The year 1 cash on cash return in the levered example above shows a 3% cash on cash return. To find this simply take the end of year (EOY) 1 cash flow of $15,805 and divide it by the initial equity investment of $515,000.

But as you can see in the table above, the internal rate of return (IRR) is 10.71%. This suggests that according to a discounted cash flow analysis, the investment is actually much better (almost 4x better) than what’s indicated by the cash on cash return. If you were only using the cash on cash return as an investment filter, then you’d pass up this opportunity to earn nearly 11%.

The reason why the cash on cash return is so much lower than the IRR in the example above is because the cash on cash return ignores the other 9 years of operating cash flows in the holding period. Plus, it also ignores the reversion cash flow at the end of year 10 that comes from the sale of the asset. Without taking into account these additional cash flows that occur over the holding period, it’s impossible for the cash on cash return to accurately reflect the return characteristics of the property.

The same is true when looking at the unlevered example above. The cash on cash return in the unlevered series of cash flows above is 6.2% ($95,000 divided by $1,515,000), and the IRR is 7.51%. This series of cash flows doesn’t produce as big of a gap as in the levered example, but it’s still a difference. Without taking into account all cash flows over the holding period, the gap between the cash on cash return and the IRR will be unknown.

As a side note – keep in mind that this can work in reverse too. In the above examples the IRR was higher than the cash on cash return because operating cash flows grow over the holding period and the sales proceeds of the asset are favorable. But it could also be the case that many leases will expire a few years after acquisition, causing operating cash flow to decline and the final reversion cash flow to be lower. This could produce the opposite result where the cash on cash return ends up being more favorable than the IRR.

Discounted Cash Flow Analysis

As shown in the example above, a discounted cash flow analysis provides a much more complete return profile of an investment property. Sure, simple measures of investment performance like the cash on cash return work as a starting point in your evaluation. But as your interest in a property becomes more serious, so should your analysis.

A discounted cash flow analysis uses concepts of the time value of money to value a commercial real estate asset. When looking at a time period extending out over a number of years, a DCF analysis estimates future cash flows and discounts cash flows back to the present. Using the discounted cash flow analysis will require forecasting future cash flows (incoming and outgoing), determining the necessary total return, and then discounting the forecasted cash flows back to the present at the necessary rate of return.

Sourced By: Property Metrics

Top 10 Reasons to Move to Tampa Bay


Top 10 Reasons to Move to Tampa Bay

Sourced By: Image


Tampa Bay ranked among the top 10 large metro areas for college-educated young talent on the move. The latest Census data reveals that young people aged 25 to 29 are increasingly more mobile and willing to move to new cities, very often in new states, in search of jobs.


Florida leads the nation in high school seniors taking Advanced Placement exams at nearly 50 percent. Florida also ranks sixth in the nation for the percentage of students who score a 3 or higher on the AP exam at 23.9 percent, compared to the national average of 18.1 percent.


An independent analysis of the CareerEdge Funders Collaborative by Urban Market Ventures found that the investments made by the nonprofit workforce-development program is producing millions of dollars in new wages and economic impact for the Tampa Bay region.


Tampa Bay is home to MacDill Air Force Base, the only military installation that hosts two, four-star Combatant Commands, the U.S. Central Command and U.S. Special Operations Command. MacDill contributes $5 billion annually to the greater Tampa Bay economy.


Tampa’s Curtis Hixon Park was named among America’s Best New Parks by The Atlantic Cities. Completed in 2011, the waterfront park serves as a more natural connection between the water, downtown, and the new Children’s Museum and Tampa Art Museum. Tampa Bay’s beloved public spaces spread throughout the region provide gathering places for families, friends, colleagues, and events from small to large scale.


Some of America’s most promising companies are located in Tampa Bay. Sarasota-based Internet communication systems and service provider, Star2Star Communications was named among America’s 100 Most Promising Companies by Forbes. The company also made the 2011 Inc. 500 list of fastest growing private companies.


The University of South Florida is ranked 50th in the nation for research expenditures by the National Science Foundation among all U.S. universities, public or private, joining the ranks of Johns Hopkins, Stanford, Yale and Harvard.


The Tampa Bay region is the 14th largest television media market in the country, with 1.79 million TV households, according to Nielsen Media Research. That means Tampa Bay has 1.6 percent of all television households in the United States. It is the largest market in Florida – surpassing Miami. If you’re looking for media exposure, you’ve found it.


According to a KPMG business cost study, the Tampa Bay market is the nation’s lowest cost large market for Corporate Services, International Financial Services and Shared Services – a testament to strong business, financial and data services sector in Tampa Bay.  KPMG’s 2012 Competitive Alternatives study measured 26 significant cost components over a 10 year planning horizon.  Bottom line – Tampa Bay is a great place for business.


According to FastCompany Magazine, Florida’s start-up environment is soaring high. From the HuB in Sarasota to Tampa Bay WaVE’s First WaVE program to large events such as Start-Up Weekend and initiatives like the Tampa Bay 6/20 Plan, Tampa Bay’s entrepreneurial environment is setting up for start-up success.

We Are Dedicated To Serving YOU

We are dedicated to serving you. To being the best we can be in your service and in the accomplishment of your goals. As such we embrace this approach to being a more efficient, productive and entrepreneurial business to best serve you.

The below was created by: Anna Vital infographic author


Selectively working with clients and prospective clients, while building lifelong working relationships.
Our Services solve your problems, saving you time and money.
The TMC team offers focused and skilled professional services, tailored to achieve your goals

Lessons Learned From Outside The Industry

ImageTMC The Mahr Company lessons from outside the industry: [The Seattle Seahawks, Bono and U2, and Bank of America]: (1) Reinvent with CANEI (Constant and Never Ending Improvement), (2) Stay with or ahead of trends, (3) Brand, Promote, Execute, Deliver,(4) Contribute to the greater good, (4) Dare to excel and surround yourself with talented motivated people desiring the same, (5) Do not accept other’s preconceived expectations,(6) Failure is not an option, Take action and act as if it is impossible to fail, (7) Proceed as if limits to your ability do not exist: The Seattle Seahawks Nail it. Nike transforms their uniforms to perhaps the coolest in the NFL, Bono and U2 deliver for the Bank of America in support of RED with “Invisible”, Coach Carroll assembles a team with talent to spare. they execute and deliver…..   Follow this link for U2’s “Invisible”