investing in commercial real estate: Micro-Tenants: One Creative Way to Market Your Commercial Space
- 02/01/11 01:20 PM
If you are a serious commercial real estate investor sooner of later you are going to find yourself owning a property that is difficult to lease. Tenant's preferences change and what may have been attractive space a few years ago can quickly become obsolete. This problem is multiplied when the property is particularly large. Leasing to Micro-Tenants is one strategy that I've seen used to fill large hard to lease spaces. This strategy has been used in retail, office, industrial, and even multifamily and hotel properties. Retail: Often when big box retailers move out of a space it can be extremely … (3 comments)
investing in commercial real estate: Selling Commercial Real Estate? Don't Give It Away!
- 01/20/11 12:55 PM
I spend a lot of time talking about investing in commercial real estate in Reading, PA. I've mentioned all the great deals and explained why I think that this is such a great opportunity to buy. I realized today that some sellers might read this and assume that I think they need to 'give away' their properties. Nothing could be farther from the truth. I do believe that the Reading, PA commercial real estate market is undervalued. This is why the deals are great for investors, but I do not advocate selling properties for less than their current market values. I … (0 comments)
investing in commercial real estate: Commercial Real Estate - The Four Major Food Groups
- 01/05/11 12:20 PM
I was speaking with a group of real estate investors in Reading, PA yesterday. Most of them are involved in commercial real estate, but one of them was just starting of in residential investing. I guess this doesn't happen too often, because our discussion made me realize that there is really a whole separate language used in commercial real estate. I'm not talking about technical terms like NOI, Cap Rate, DSCR, and IRR. Those terms are obvious, but some of the slang that is thrown around is what I've never really noticed. The one that stuck out to me yesterday was 'The Four Major Food … (0 comments)
investing in commercial real estate: Evaluating Commercial Real Estate Investments - Calculating DSCR and LTV
- 12/28/10 12:35 PM
Hopefully you now have a good hanldle on cap rates, and we can move forward with analyzing that small retail property in downtown Reading, PA. Once you have an idea about what a property is worth, you need to figure out how you are going to pay for it. For most investors this means getting a mortgage. So how do you know how large of a mortgage your property will qualify for? Notice this is about what the property will qualify for, not you personally. For commercial properties, the property itself is often more important than the borrower when qualifying for … (0 comments)
investing in commercial real estate: Evaluating Commercial Real Estate Investments - Calculating NOI
- 12/22/10 12:30 PM
In my previous blog post I promised to explain some of the basic calculations necessary for investing in commercial real estate. I'll start today with what I believe is the beginning, Net Operating Income (NOI). I will present a simplified version of this calculation today, and will get into more details in a future post. So, let's assume we are thinking about purchasing a small retail property in reading, PA. One of the first things that we ask the seller for is his financials or P&L's. Often when we ask for this, we get some numbers scratched on a piece of paper, or a bunch of bank … (0 comments)
investing in commercial real estate: Evaluating Commercial Real Estate Investments - An Introduction
- 12/21/10 12:24 PM
Whether you're investing in a 4,000 SF retail building in Reading, PA or a 400,000 SF office tower in Center City Philadelphia, there are a few key concepts that you need to understand. These concepts are the basis for most, if not all commercial real estate analysis. The most basic of which, is that the value of commercial real estate is a function expected future income from the property. This one concept has led to the creation of several different calculations that every commercial real estate investor should know. You must be able to calculate your NOI, Cap Rate, DSCR, Cash-on-Cash Return, and IRR. Knowing … (3 comments)
investing in commercial real estate: Reading | Berks County | PA | Making an Offer on Commercial Real Estate
- 12/17/10 12:44 PM
I was talking to a would-be investor today. He has been talking about investing in commercial real estate for years. He looks at properties online regularly, and he seems to think that if he looks at enough properties, he'll eventually find the perfect deal. He seems pretty bright, so I can't figure out why he hasn't changed his strategy after all these years with no success. What this would-be investor doesn't realize is that good deals aren't found, they're made. What you have to do is find properties that meet your basic investment criteria, location, size, product type, etc., and then … (0 comments)
Commercial Real Estate blog discussing investing, selling, and leasing retail, office, industrial, residential, mixed-use, hospitality, self storage, and other commercial real estate in the greater Reading, PA market.
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If you are a serious commercial real estate investor sooner of later you are going to find yourself owning a property that is difficult to lease. Tenant's preferences change and what may have been attractive space a few years ago can quickly become obsolete. This problem is multiplied when the property is particularly large. Leasing to Micro-Tenants is one strategy that I've seen used to fill large hard to lease spaces. This strategy has been used in retail, office, industrial, and even multifamily and hotel properties.
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