CREE Lesson 1 Preview

Each Lesson in the CREE Certification is packed with resources. As you watch the video, feel free to scroll through the Presentation Slides and click on the various links and downloads.

Lesson 1 (41 minutes):

Presentation Slides:

Lesson Resources:

Key Terms:

  • Commercial Real Estate (CRE): commercial includes all investment real estate outside of Residential homes & multi-family up to 4 units. If real estate is used for business activity, it is considered “commercial.”
  • Residential Real Estate: residential real estate is property that has been developed or zoned for living.
  • Asset Classes: there are 4 main commercial asset classes, which include: multi-family, industrial, office, and retail. Each of which has their own sub-classes.
  • Multi-family: multi-family properties are defined as a property with 5 or more units.
  • Industrial: are properties used for industrial purposes, including heavy manufacturing, light assembly, flex warehouse, and bulk warehouse. They are broken down into 3 sizes: small, large, and enormous.
  • Office: there are two types of office properties: urban and suburban, which are broken down into 3 categories: Class A, Class B, Class C.
  • Retail: a commercial space is considered “retail” if the space is being used for the selling of goods to consumers.
  • Lease: a contract between two parties, the lessor and the lessee. The lessee (tenant) of the property agrees to pay the lessor (landlord) a monthly fee for the use of their property.
  • Investor: an institutional or non-institutional entity that loans money to invest in commercial real estate.
  • Businesses: local business owners who want to buy a building and no longer pay rent to someone else – “owner-user”.
  • Institutions: Wall Street, publicly traded, insurance companies.
  • Real Estate Investment Trusts (REITs): turns the real estate market into the stock market. There are two types: Equity REITs & Mortgage REITs.
  • Private Investors: a non-institutional (non-bank) entity that loans money to invest in commercial real estate.
  • Foreign Investors: foreign investment involves capital flows from one country to another granting extensive ownership stakes in domestic companies and assets.
  • Syndicators: pool in funds from a variety of investors to aid in organizing a real estate project.
  • Tenant Representative: acts as a market expert, supplying the prospective tenants with estate market conditions in order to help them locate a property.
  • Landlord Representative: is a listing or leasing agent, they act as the representative of the landlord or owner of the property to find the tenants and negotiate on their behalf.
  • Buyer’s Broker: work with investors as their commercial real estate financial advisors. Helping business owners currently renting who want to own.
  • Seller’s Broker: works with investors, business owners, and developers; conducting a pre-marketing due diligence to eliminate any questions in order to solicit the highest and best offers.
  • Generalist: have more flexibility and can serve a larger market, having some expertise in multiple property types.
  • Specialist: develop a deep expertise in a single niche area or transaction, serving a smaller market.

To advance to Lesson 2, please complete the 5 question quiz, and mark Lesson 1 complete.