As a business owner, choosing an office space is one of the most important things you’re tasked with. A building must not only service all your company’s needs, but also serve as a reflection of you to potential clients. Below, myNOi has collected five questions to ask yourself before you lease an office space: Is There … Read more
Previously, myNOI covered how cap rates were calculated. Now, we’ll describe the other factors that go into determining current cap rates. At their simplest, cap rates are just the annual net operating income divided by the cost paid for the property. However, much more influences current cap rates than those two sums! Investors use cap rates … Read more
“You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do … Read more
In the fast-paced world of commercial real estate, many investors understand that high returns don’t just come from a signature on a lease agreement. On the contrary, successful property owners are business savvy with a drive to invest large sums of time and money in order to reap high returns down the road. Whether you’re … Read more
Managing a property is just like performing in a circus act of spectacular proportions — often, managers feel as though they’re balancing on a tightrope while juggling the needs of tenants, unexpected property repairs and complex leasing agreements. It’s a lot to handle, but in the end, their work satisfies the masses. If you’re new … Read more
Investing in land is a different experience than putting your money into more traditional commercial property types. Investors who tend towards land choose to purchase a plot of ground in hopes a developer will approach them to build a commercial property on it. Read below to find out more about investing in land. Investing in Land: About … Read more
Investing in industrial properties may not be as luxurious as purchasing a high-end office building or leasing a fancy retail store, but smart investors can make a healthy profit from them. While not glamorous, industrial properties have provided a steady 10.6 return for the last 20 years. This consistency should make them a staple in any investor’s … Read more
Commercial investors who aren’t scared to take a risk for potentially high rewards will enjoy investing in retail properties. A retail building’s success is obviously tightly connected to the health of the local and national economy, meaning investors will be riding high during the peaks and feeling low during the valleys. Below we’ll provide a ‘starter pack’ … Read more
Savvy investors can make a lucrative return by investing in office buildings. Each of the four commercial property types have risks and benefits associated with them. In this post, we’ll go more in-depth on investing in office buildings. Investing in Office Buildings: Tenants Best case scenario, your office building will already be filled with tenants when … Read more
Commercial real estate crowdfunding laws can be dense, yet more than ever, commercial investors are harnessing the power of the internet to raise funds on the fly. Crowd-sourcing websites like realtyshares.com, realtymogul.com and realcrowd.com draw in droves of investors on the daily, and the demand doesn’t appear to be slowing down anytime soon. In 2015, … Read more
In the real estate business, it’s important to know that not all types of commercial properties are equal. Of the four asset classes on the market today — i.e. multi-family, office, retail and industrial — each reap a unique reward. Before you ink your next deal, consider taking a closer look at what each asset … Read more
Every investor should know how to spot a bad commercial real estate deal. First time investments are usually a huge commitment for those starting out. And while it can take time to learn the ins and outs of a property, it’s well worth it to make sure your money is safe. Here are three signs … Read more
As we head into the new year, it’s helpful to know which commercial real estate markets are expected to see increased activity in 2017. Nailing down which areas are set to perform well is not an exact science, but Zillow, Realtor.com and REFM have all released lists highlighting potentially strong markets. These are five cities … Read more
Despite living in an ever-expanding digital world, real estate investors still rely on the in-person perks of an open house to land a sale, fast. Sparking an interest among buyers requires much more than a veggie tray and snap tour. Instead, an open house should allow audiences to engage with you and the property first-hand. … Read more
This week, MyNOI covered what a Real Estate Investment Trust is and some of the pros and cons of investing in them. Today, we’ll cover how REITs came into being. REITs were created in 1960 as then President Dwight E. Eisenhower signed Public Law 86-779, which is also known as the Cigar Excise Tax Extension … Read more
Earlier this week, MyNOI covered what a real estate investment trust (REIT) is and how you could get involved in them. While REITs offer a great way for skittish first-time investors to try their hand at commercial real estate, there are some drawbacks to them as well. Today, we’ll cover both the good and the … Read more
If you’re interested in commercial real estate, but don’t know where to begin, a real estate investment trust (REIT) can be a good way to get your feet wet, while avoiding much of the inherent risk. A REIT turns the commercial real estate market into the stock market, allowing investors like yourself to purchase shares … Read more
It’s no secret that investing in commercial real estate can reap high rewards. Whether it be the potential for hefty returns or flexibility in maintenance expenses that draw you in, be sure to consider ways to sustain your investment before taking the leap. To quote American businessman and investor Tamir Sapir, “If you’re not going … Read more
Unbeknownst to many who aren’t involved with commercial real estate, the market actually follows a fairly predictable pattern. This real estate cycle can be broken down into four distinct phases—recovery, expansion, hyper supply and recession. Knowing which of these phases the market is currently in can help you make the best decision regarding your investment … Read more
Before you get involved in commercial real estate, it’s important to know how you plan on making money from deals. Entering the market with an understanding of what you plan to do with your property in the future can help you make the best decisions now. In this post, we’ll cover strategies for turning a … Read more
Whether they’re building a property from the ground up or are choosing to renovate an existing space to lease — commercial developers wear many hats. Toronto-based city builder and blogger Brandon Graham Donnelly put it best when he said “Developers are like an orchestra conductor. They don’t play any instruments, they just direct the performance.” … Read more
In 2014, Loopnet partnered with Google and released a study called “Commercial Real Estate Consumer Online Behavior and Trends”, with the stated objective of “better understanding the role of the internet in finding, selling, and leasing commercial properties.” Utilizing a 3rd party company, a blind survey was conducted to examine the behavior and sentiments of … Read more
A Quick Re-cap (no-pun intended) As you likely know already, the cap rate is a ratio used to estimate the value of income producing properties. It is the net operating income (NOI) divided by the sales price or value of property, and is expressed as a percentage. The cap rate is used by appraisers, investors, … Read more
If you’ve ever glanced at a land-use zoning map before, you understand why people don’t bring it up in conversation often — it’s complicated. Just look up the phrase “zoning maps” in your area of interest and you’ll see what I mean. Despite the somewhat drab nature of the topic, zoning ordinances play a crucial … Read more
The week is just beginning, but already there’s lots of commercial real estate news to catch up on. Check out these four articles on Miami investments, CommLoan, the state of CRE and a call to brokers to work toward more affordable housing. As Miami’s Condo Market Plummets, Commercial Real Estate Soars The tables are turning … Read more
Ask people what a commercial real estate developer does and you’re likely to get a different answer from all of them. The fact is, being a real estate developer is a complex blend of architecture, finance, managing, engineering, hand-shaking and more. There’s no straight shot to becoming a real estate developer, but we’ll highlight some … Read more
In commercial real estate, it’s smart to think ahead and keep a close eye on the numbers. As a commercial broker with more than two decades in the ring, I’ve continued to rely on a variety of metrics, including Internal Rate of Return, or IRR, to ensure my investments are sound. IRR stands strong in … Read more
One way to identify a potential investment location which is on the precipice of rapid value increase is to understand where gentrification has recently started. Gentrification is “a process of renovation and revival of deteriorated urban neighborhoods by means of influx of more affluent residents” and can be an excellent signal for investment opportunities. One … Read more
This week, I’ve spent time covering popular real estate crowdfunding websites and the history behind their current popularity. While there is a lot to be excited about when it comes to crowdfunding, it’s important to remember investing is never completely risk free. I’ll cover some of the bigger concerns here and what you can do … Read more
On Monday, I shared some of the best crowdfunding real estate sites available for you to invest with. Today, I’ll spend some time explaining the history of crowdfunded real estate. In 2012, the US Congress passed the JOBS (Jumpstart Our Business Startups) act, which legalized equity crowdfunding—the sale of corporate equity stakes through online platforms—for … Read more
This week, I’ve covered the responsibilities of a property manager and the skills they should possess. As I mentioned when we began, there are two paths to take with property management. With the first, you take charge yourself and adopt the responsibility of overseeing your buildings. The other route is to pay a property management company … Read more
Yesterday, I covered the responsibilities you take on when you adopt the role of property manager. Today I’ll cover some of the skills of a commercial property manager. These are the talents they should have and the behaviors they should exhibit. Before you decide to do the job yourself, make an honest evaluation and see if these … Read more
The ink is fresh on the contract, and you’re now the proud owner of a piece of commercial real estate…but now what? Property management! Over the next few days, I’ll cover the important the responsibilities of a commercial property manager, the skill set it require, and what to look for when hiring a third party. … Read more
Defining real estate markets is a bit of a fuzzy game. In many cases, they are defined as primary, secondary, and tertiary with regards to volume of sales, population, and transaction volume amount. In general terms, Primary markets have over 5 million people, secondary markets have 2 – 5 million people, and a tertiary market … Read more
Before putting pen to paper on a fresh new lease, it’s often recommended to draft up a Letter of Intent. An LOI, as it’s called in the industry, helps prospective tenants edge forward to signing a lease that’s inclusive of their plans for the property in years to come. These documents vary from deal-to-deal and … Read more
Retail property is one of the most sought after investments around today. Out of the four asset classes on the market, investors are paying large sums for small, multi-tenant and single-tenant retail properties in locations across the globe. With such hot demand, it’s hard to get your foot in the door. That’s why I’ve put … Read more
Investors prize after real estate deals that guarantee safety and high rates of return. These days it’s hard to know where to look. My advice to you: consider the absolute net lease, also known as the land lease. Picture a prime piece of property on a high traffic corner, free of development — to put … Read more
It’s a good time to invest in multifamily units for many reasons. Approximately 35% of the U.S. population rents, and the demand for rental housing is strong. On top of the market appeal, the convenience of multiple units situated in one location cannot be overstated. Below, I’ll cover some of the reasons you should consider investing … Read more
It doesn’t matter if you’re an amateur or adept in the industry — if you’re interested in advancing your career consider increasing your commercial real estate education. These days, aspiring brokers and investors are looking to the ample amount of educational opportunities available online in order to better serve their clients and improve their ability … Read more
Central to the business of brokerage, leasing and investing is property management. To maintain a smooth operation, it’s crucial to pick the right property management software. As an owner of a property management company, in addition to my brokerage and development business, I can tell you the dos and don’ts of property management software options … Read more
With the continued evolution of eCommerce putting a dent in the bottom line of brick and mortar retail stores, from AAA national brands to local mom and pop shops, it’s tougher than ever for owners of retail centers, malls, villages, and the like to know what to include in their tenant portfolio to maximize effectiveness … Read more
Global political and market conditions can and will have a major affect on Commercial Real Estate (CRE) in the United States. The US has long been considered one of, if not the most, stable and transparent property markets in the world, which means that global capital is naturally driven into domestic CRE. For example, in … Read more
To help manage the colossal scope of their industry, commercial brokers and investors have split it into five types of commercial real estate. Below, I’ll talk about what these different categories include and what to look for when investing in them. Office Office buildings range in size from the small suburban office parks to the … Read more
The world of commercial real estate is filled with enough intimidating jargon to fill a book, which is exactly what Realtor.com did. Their “Commercial Real Estate Glossary” is a handy guide to bookmark in case you ever find yourself unable to remember what a NNN is or wondering what you may be in store for with LPTI.
Search “commercial real estate” online and right away you’re inundated with thousands of portals vying for your attention. I know finding the right site isn’t always easy, so I’ve compiled a list of the best websites to search for commercial real estate. Loopnet.com is one of the best websites to search for commercial real estate, particularly … Read more
As a certified appraiser and broker, I know the best practices to value an investment property. My go-to list boils down to three approaches related to cost, income and sales. So if you’re not so sure how to value your commercial property, keep reading. 1. The cost approach When you begin to value an investment property, … Read more
I’ve been involved in commercial real estate for more than 25 years. Since then, I’ve come to understand what works and what doesn’t when it comes to the relationship between a client and their broker. I put together a list of 7 key traits for brokers to strive for, developed from my many years of … Read more
Not so sure how to answer the above question? Here’s what you need to know. A capitalization rate, or a cap rate as it’s often referred, is the rate of return anticipated for one year if the property was paid for in cash — It’s the ratio between Net Operating Income (NOI) and the property … Read more
In commercial real estate, whether it be for a retail, office or industrial lease, the terms “triple net” and “gross net” come up often. Learning the difference between the two could make all the difference in reaching an agreement that is mutually beneficial for the tenant and property manager. Often referred to as a net-net-net … Read more
These days, real estate investors are increasingly looking to multi-family properties to generate high rates of return. With demand for apartments and similar units on the rise, learning to weather fast market conditions is an imperative to getting the best value for your property. With years of experience as a commercial broker, I’ve developed three … Read more