Posts tagged commercial real estate market
The KISS Guide for Multifamily Investments

The commercial real estate market is an estimated $4 trillion market in the United States alone composed of various asset classes: multifamily, office, hotel, industrial and retail.  Each asset class requires a different set of skills, conceptual framework and analysis tools to become a success. Becoming an expert in any one asset class is a lifelong struggle of learning and knowledge accretion. Given  the dizzying amount information out on the Internet , I wanted to give a simple overall framework for each of the major asset classes that I have used when I have analyzed investment opportunities.

I call these the KISS Guides.

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The Experience Economy Affects Commercial Real Estate

The commercial real estate market is extremely competitive and enticing major brands to select one development over another requires more than just “location, location, location.” With everything getting “smarter,” from devices to cities, the expectation for brands is that real estate property will keep pace with evolving technical standards. Up until now, branding considerations in property design have taken a backseat in terms of developers’ top priorities, but they will become increasingly important as the experience economy continues to mature.

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How to the Increase Net Operating Income of Your Multifamily Property

When it comes to property management, the rule of thumb says expenses take up around 50% of your income.

Read that again.

Around 50% of your rental income will go directly to the expense column.

It may not happen with the first property or the next — but as you grow, the expenses eventually add up across your assets (repairs, new roofs, vacancies, and so forth).

It goes without saying: The way you manage your properties can make or break you as an investor. Of course, with commercial investments, your NOI is directly tied to your valuation (and your equity!), making effective management even more crucial.

Beyond raising rents — which has been covered here — what are some effective ways to unlock profits? Here are three quick tactics that will boost your portfolio bottom line.

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What to Consider Before Leasing Your Commercial Property

If you’re considering leasing your commercial property, there are many elements to mull regarding the market, your tenants, and the terms of the lease. Be sure and consult this checklist of things to do before leasing as you move forward.

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Investing in Office Buildings?Here's a Quick Guide

A real estate investor needs to be both a good analyst and a great capital raiser. KISS guides are meant to help you solve one of those two needs: a better analyst.

Keep It Simple Stupid guides are meant to provide investors a framework for understanding the supply-demand indicators and valuation techniques within each major commercial asset class. Last time, we discussed KISS guide to Multifamily Assets; this week we discuss Office Assets.

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In Age of Amazon, Investing in Tech or Warehouses May be a Good Idea

Real estate investment trusts that specialize in industrial properties, such as Prologis Inc., Rexford Industrial Realty Inc. and Terreno Realty Corp., are outperforming REITs that focus on malls, residential rentals and office buildings.
 

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