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Recent Blog Posts
Two Things to Consider About Your Potential Condo Deconversion Investment
Just as trends come and go in other business arenas, they also make their mark in the commercial real estate world. The condo deconversion is one of the latest booming trends to hit commercial real estate, but some experts believe this may be more than a trend that will fade with time.
There are a few simple realities behind this reasoning: condo deconversion is based on restructuring older properties, and alternatives to new construction are continually in demand. There are - and will continue to be - older properties in need of modernization, and at the same time, real estate investors in need of more affordable construction methods. This makes the condo deconversion business model very appealing in commercial real estate, which means the market will likely continue to see a lot of them in the future.
Tips for Increasing Your Agility in Today's Volatile CRE Market
Real estate has always operated in a cycle. Prices and interest rates drop, offering opportunities to seasoned and new investors alike. Then they rise again, causing what is known as a real estate downcycle. In these downcycles, some investors fall to the wayside, either through bankruptcy or because they leave the market in an attempt to preserve their remaining wealth. Others get creative, increase their agility, and manage to hold on to their businesses until the next real estate boom. Learn how you can be a part of the latter group, even in today's increasingly volatile commercial real estate (CRE) market.
Relevancy and Real Estate
Many of the issues occurring in today's real estate market can be traced back to a lack of relevancy. In fact, countless department stores, toy stores, restaurants, and hospitals have gone bankrupt because they failed to stay ahead of the curve or were unwilling to change. The very same thing happens to investors as well. Thankfully, by using the following three strategies, you can decrease your company's chances of experiencing such a fate:
CRE Investment Basics - Should You Wait for the Next Real Estate Crash to Make Your Move?
Tariffs, shortages within the construction industry, and the increasing costs associated with purchasing or renting a property point to the possibility of an impending real estate down cycle. It might be tempting to wait out this cycle, in hopes of making it big in commercial real estate (CRE) like many others did during the Great Recession, but is it a sound strategy? The following sections highlight the potential downfalls of holding out until the next market crash, and it explains how you can begin to take immediate steps toward successfully breaking into the CRE investment market.
Waiting to Invest in Commercial Real Estate - Sound Strategy or Major Mistake?
For those who have not yet entered the CRE investing market, waiting may seem like a sound strategy. However, seasoned investors know the truth: breaking into the market takes time. Knowledge must be acquired, and relationships must be built. These resources are all critical to success for investors, and if you wait to break into the market, you may struggle to find the ones that you need the most. Part of that is due to the changes that happen within the market when a crash occurs. Banks and lenders may merge, or they may tighten their lending criteria. Others may disappear entirely, even after approving your loan, leaving you without proper funding. In short, if you want to invest in the commercial real estate market, the time to get started is now.
How Important is Price in a Commercial Real Estate Transaction?
When it comes to investing in commercial real estate, there are many factors that determine your final return - but just how important is the price of a property? Perhaps not as much as you think. Learn why in the following sections, and discover how our seasoned Naperville commercial real estate lawyers can provide you with additional leverage in your next CRE transaction.
Examining the Relevancy of Price in a CRE Transaction
While, ultimately, price does have an impact your bottom line in a real estate transaction, it may be far from the most important factor. Instead, matters like taxation, the potential long-term return on investment (ROI), utility costs, and other relevant issues may ultimately trump the importance of price on an investment property. As an example, consider the growth of Wham!, which started out at around $2.5 million for 50,000 square feet of space, but now weighs in around $11.5 million. If the investors who started out in this industry had been concerned about price in the beginning, they might have missed out on a highly profitable opportunity.
CRE Development Basics: Building a Neighborhood That People Want to Live In
People measure real estate success in different ways. For some, it is their bottom line. Others only feel they are successful when they meet a certain investment goal (i.e. closing a specific number of deals in a year). Still, there are some who set their sites on sustainable, long-term wealth.
Building a Neighborhood - How Positive Community Impact Improves Investor Wealth
While there are those who fail to see the correlation between community development and long-term wealth, data shows that small-scale developers tend to build a stronger, more stable stream of income when they become intimately involved with the community in which they are developing. That is because they take interest in what the community wants, rather than simply relying on what is “trending,” which can be extremely important in certain parts of a city.
Three Things to Know Before Entering the “Green” Commercial Real Estate Market
Although the big debate over global warming has made headlines in recent years, the scientific consensus is overwhelming: the planet is getting warmer, and it is happening at an alarming rate. This information, paired with the growth of the “green movement,” has increased the demand for eco-friendly applications in almost every industry. Commercial real estate (CRE) is no exception.
What does it mean to “go green” in the CRE industry, and how can you ensure that you get ahead of this trend? More importantly, how can you increase the chances that your green efforts will be profitable for your real estate company? Learn more in the following sections, including how the assistance of a seasoned CRE attorney can boost your profitability in the green CRE sector.
1. The “Green” Trend is Here to Stay
5 Responsibilities of a Commercial Real Estate Landlord
While it is true that you can boost your income and perhaps even build a nest egg with commercial real estate (CRE) investing, those who are not equipped to handle the process risk significant financial loss. First, there is the risk of a failed return on investment - an issue that can often be mitigated using seasoned legal assistance during each step of the transaction process. Then there is the chance that you may be sued if you fail to meet your legal obligations as a landlord. What are these obligations, and how can an attorney help you meet them? Continue reading to learn more.
1. CRE Landlords Are Required to Adhere to All Local and Federal Laws
All landlords are required to follow certain local and federal laws. Commercial landlords are no exception. You cannot discriminate based upon certain criteria (race, religion, etc.). Furthermore, you must adhere to all building codes and zoning laws. Failure to meet any one of these obligations can result in serious consequences, including (but not limited to) legal recourse.
Commercial Real Estate Valuation - What Investors Need to Know
Although there are many aspects that go into determining a commercial real estate investor's overall return on investment (ROI), the valuation of each property is one of the cornerstones. What do you need to know about property valuation to improve your overall ROI in commercial real estate (CRE), and how can a seasoned real estate lawyer help? The following explains.
There is More Than One Way to Valuate a Property
Property valuations are not as cut and dry as some might like you to believe. Instead, there are multiple approaches that one can use to determine what their final ROI on a property might be.
The first is the cost approach, which examines the amount of money that it might take to procure a property and, if necessary, rebuild it. This is typically used for unique properties, as well as those that need or have undergone extensive repairs or upgrades.
Getting Started in CRE Investment - Which Commercial Real Estate Sector Should You Choose?
If you have toyed with the idea of commercial real estate investing, now is the time to take the plunge! Despite the previous concerns over an economic downturn, the market is expected to continue its growth. In fact, investors are likely to see some of the biggest gains in history over the next several years. Of course, that begs to question, where do you start? Also, what sector is most suited for a new investor like yourself, and how can you give yourself the best chance at success? Continue reading to learn the answers to these questions.
Examining the Different CRE Sectors
Commercial real estate is divided into categories known as sectors. Each has its own set of challenges, ROI opportunity, and nuances.
The Office/Occupier Sector: Deals with office space. As an investor, you would be working with corporations, medium-scale businesses, office shares, and the like. Economists expect office-use jobs to see their 10th consecutive year of growth, with a projected 1.6 percent rise in the upcoming year. This data suggests that investors will see a healthy return in the upcoming year.
7 Steps to Help You Break Into the Commercial Real Estate Sector
Savvy investors know the best protection against extreme financial loss is a diverse investment portfolio. Yet, many overlook the commercial real estate (CRE) sector. Perhaps it is because they fear the large, upfront investment, big risk, and long-term return on their investment. More likely, however, an investor may hesitate or even avoid the CRE market because they do not fully understand the benefits or the necessary steps for breaking in to this type of market.
Why Commercial Real Estate?
The first issue to address is the “why” behind commercial real estate. Certainly, there are other types of investments with lower risks. Yet, it is the high risk and large investment amount that make CRE properties so appealing. They offer a steady and stable return. Real estate is also considered a tangible asset, which investors can use as collateral on other investments.
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