This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- The Single–Tenant Investment Property
- Turning Around A Neglected Property
- Good Planning & Marketing Gets Tenants
- Costly Investment Mistakes To Avoid
- Corporate Shared Office Space
Around 25% to 35% of the value of commercial properties are single-tenant properties. This large percentage means that institutional investors such as pension funds, as well as smaller investment groups must consider this type of investment. There are many uses ranging from office to industrial to retail. They can include office buildings, warehouses, department stores, supermarkets and other retail use. There are advantages and disadvantages in this type of ownership compared to multi-tenant properties…..(more)
It is hard to believe that someone can totally neglect a valuable investment property like a multi-unit office building or an apartment complex. It happens. The run down property may have been acquired from a seller who did not understand real estate investments and failed to manage it at all.
The professional investor can usually spot the low-priced and currently unprofitable income property that can be purchased, then upgraded with some reasonable expense so that it becomes a cash flow property. That property can then be added to the investor’s real estate portfolio or quickly sold for a profit…….(more)
When an investment property is located in an overbuilt market, the marketing effort for tenants must have good planning and direction. Just throwing large amounts of money into the effort can be a waste. Rather than broad advertising, a narrower action may be required. Keeping the local brokers who specialize in leasing constantly updated about the amenities of a certain building may be the best way to make it more marketable…..(more)
Now may be the time to start thinking of the next real estate investment.
You must pick the right property for you. Sometimes, even the best thought out plans do not work out. Investments in real estate can turn out badly even in the best of times. Investors may then blame the loss on the “real estate cycle” when there were mistakes that could have been avoided by better planning and analysis…..(more)
With the new revolution in communications, building owners must keep up with the changing needs of the corporate tenant. Often the larger, well-organized businesses do not need the space that was necessary just a few years ago. Electronic communications to and from employees have substituted for leased office space. Managers are more willing to grant favorable lease terms to operators of shared space. The operator sometimes receives a monthly management fee for operating the shared space plus a portion of rent revenues over a certain amount……(more)
