Commercial Real Estate Education

Is It A Buyer’s Market or a Seller’s Market?

Market conditions are driven by complex occurrences that happen every day. Examples include global and local economic changes such as steel shortages, demographic shifts due to the pandemic, interest rate changes, urbanization trends, and more. As a business owner, it’s important to note that these changes often come out of nowhere like COVID-19 and each market can be affected differently. Currently large markets like NYC, LA, Chicago and San Francisco are struggling to manage large vacancies while states like Arizona, Florida, Tennessee and Texas are challenged with unparalleled migration of population and businesses. An experienced broker who has lived through

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Commercial Real Estate Investment Tricks

No matter the property type, commercial real estate investing is all about the lease, tenant, and your return on investment. Whether you’re a seasoned investor or just starting out, remaining competitive is essential in the performance of any property. Here are a few tricks to help you be successful: Focus on Being an Investor Rather Than an Accumulator of Properties Before investing in a property, do your due diligence to ensure you’re making a sensible decision. Remember, investments should produce an income or a profit. If you purchase a property that produces no income or profit, you just acquired a property which costs

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Not Your Mother’s Home Loan

So, you’re ready to buy your first commercial property. Great news! While you may have purchased residential real estate in the past, it is important to note that acquiring an office property is nothing like buying a home. Feeling nervous? Don’t be. My new book, “Simply Own It, The American Dream,” will guide you through how to buy the perfect commercial property to support your business, step by step. Before you get your hands on the book, this blog covers some helpful tips. Residential vs. Commercial Loans: What’s the Difference? So how do residential and commercial loan options stack up?

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Pros and Cons of a Sales-Leaseback

Sale-leaseback transactions are an appealing option for both corporate property owners and commercial real estate investors. But before we dive into the advantages and disadvantages of a sales-leaseback transaction, let’s first take a minute to review some logistics. In a sale-leaseback transaction, the owner of a commercial property sells the asset to an investor and enters into a lease for a mutually agreeable term or time period, lease rate, annual lease increases, and lease type. Depending on the asset and situation, the lease could last anywhere between 7-15 years. The typical lease structure is a triple net (NNN), which makes

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Tips for Investing in Medical Buildings

Given the social impact of COVID-19 and other recent worldwide events, it is no surprise that investors seek medical office buildings as a bankable, essential asset class. In addition to the relative stability these investments offer, the number of outpatient centers across the U.S. continues to increase as patients desire more convenient and more affordable access to healthcare. Here are considerations that make medical office buildings a promising investment. Retention of Tenants is Regular Doctors stay at a location that suits them well because relocating usually results in a loss of 10 to 20 percent of their patient base. Furthermore,

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Tips for Investing in Core Real Estate Assets

If you’re looking to diversify your portfolio, look no further than core commercial real estate assets. Amid the current pandemic, typical strong demand urban centers like San Francisco, New York and Chicago have shifted in popularity for commercial investors. Instead, tertiary markets such as Phoenix, Austin, Nashville, and many other secondary markets are sought and have an added incentive with a higher return for the investor. Core investments generally employ low to moderate leverage and target stabilized, fully leased investments with a meaningful income component. Many investors see core investments as an attractive strategy for the level of risk they

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Why To Save For A Rainy Day

If there’s anything 2020 has taught us, it’s to expect the unexpected. Who could have predicted the impact the COVID-19 pandemic would have on commercial real estate and specifically the demand for space through quarantines, shutdowns, supply chain disruptions, employment loss, and much more. As a commercial real estate investor, potential economic conditions must be considered before buying single-tenant and multi-tenant properties. A financial savings plan or “rainy-day fund” can provide an extra security blanket that can help you through tough times or support your growth when the time is right. Here are a few reasons why single tenant and

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What sinks the (CRE) commercial real estate investment boat the fastest?

Investing in commercial real estate has long been a dependable wealth-building tool. While its long-term rewards can be very lucrative, it’s also a gamble. Mitigating risks on your investments comes down to learning the common mistakes and knowing how you can avoid them. If you’re interested in commercial real estate investment, read on for investment mistakes to avoid and tips to “win” the game of commercial real estate. Many investors struggle with the real estate due diligence process. While it may seem overwhelming and you may not know where to start, an experienced buyer representative and commercial real estate attorney

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Helpful Negotiation Tips for 1031 Investors

Triple net lease investments (NNN) with essential businesses such as drugstores, grocery stores and logistics centers are in high demand in the current market. Sellers are holding strong on their asking rates and many NNN assets are under contract within weeks of going on the market for close to the asking rate. As many 1031 exchange investors chase after potentially scarce properties in the marketplace, they may find themselves running into trouble finding replacement properties. To help you win your property bid when you need to replace funds for your 1031 exchange, I’ve complied some helpful negotiation tips that will

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Tips for Investors: How to be Successful in Commercial Real Estate

Buying and owning commercial real estate can be an exciting business venture. But like many investments, investing in property comes with risks and rewards. Before adding real estate to your existing portfolio, it’s important to understand the various factors that can lead to your success. Included below are a few tips to help guide you: Know What Asset Class You Want to Play In There are a variety of asset types in commercial real estate and most can be classified into four main sectors: industrial, retail, office or multifamily. Each sector is different in its own way and its crucial

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