berks county: 5 Questions To Ask When Considering Your Retail Center's Tenant Mix
- 02/04/11 01:58 PM
Like most commercial real estate, value is created in retail properties through effective leasing. One important aspect to consider when leasing your retail real estate is your tenant mix. In other words, you need to consider how your tenants businesses relate to one another. Here are five questions to ask your self when evaluating a new tenant for your retail property in Reading, PA: Does the new tenant compete with your existing tenants? For most types of retail properties, it is not a good idea to lease vacant spaces to tenants that directly compete with your existing tenants. This is pretty obvious, but … (6 comments)
berks county: Selling Investment Properties - What's the Bare Minimum?
- 01/15/11 10:23 AM
What is the bare minimum that your agent or broker should be doing to sell your investment real estate? I was showing small investment properties all day today in Reading, PA. I was with an investor that I have worked with quite a bit, and we started discussing the range of information that we were provided by the different agents. For some of the properties we were given income and expenses and end dates for existing leases, at others we were given just the rental rates, and at some we weren't given any figures at all. Keep in mind that when buying investment properties, most … (2 comments)
berks county: 7 Services A Professional Commercial Real Estate Agent Must Provide
- 01/08/11 02:44 AM
I'm often asked the question, "Don't all commercial real estate agents do the same thing?" This question usually comes from someone who is thinking about hiring their brother in law, cousin, family friend, or random acquaintance to sell their commercial real estate. Many sellers assume that all you have to do is put the property online, put a sign up, and put some adds in the paper, and their property will sell. Clearly if this was the case, any old commercial real estate agent would do. Unfortunately it is not the case, and therefore, sellers shouldn't just use the first commercial … (0 comments)
berks county: Evaluating Commercial Real Estate Investments - Making Projections (Part 1)
- 01/07/11 12:37 PM
In my post about calculating IRR, I promised to come back to the subject of making projections. Like many other aspects of buying commercial real estate, making projections is more of an art than a science. A friend of mine who works at a private equity firm likes to say, "All financial projections have one thing in common; they are all wrong!" His point is that despite the complex math involved, all acquisition models involve some, and often several, guesses or assumptions about the future. Some of these guesses are conscious, and some are not. For instance, in my example of the small … (0 comments)
berks county: 6 Businesses That Make Great Sale Lease-Back Transactions
- 12/31/10 10:42 AM
I received a few questions after I mentioned Sale Lease-Back transactions in my post yesterday, ‘7 Reasons to Call Your Commercial Real Estate Agent'. Apparently this is a new concept for many business owners here in Reading, PA. So I wanted to give a small list of companies that are well suited for these types of transactions. 1. Car Dealerships 2. Pharmacies 3. Distribution/Wholesalers 4. Funeral Homes 5. Doctor Offices 6. Restaurants This list is far from exhaustive, but these are some of the more common ones. Really any business that owns and occupies a property in its entirety is a candidate for a Sale Lease-Back transaction. … (2 comments)
berks county: 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)
berks county: Reading | Berks County | PA | Financing Commercial Real Estate Investments with Your IRA
- 12/27/10 01:55 PM
I've decided to take a little break from my series on evaluating commercial real estate investments. I'll continue with it later this week (I hope you don't mind waiting), but today I want to answer a question that I get all the time, 'Don't you need a lot of money to invest in commercial real estate?' I heard this question today from a former coworker of mine. This really surprised me coming from him, because he happens to be in the commercial mortgage business. I'm sure that he's come across several transactions where one or more of the principals contributed little to no … (0 comments)
berks county: 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)
berks county: Reading PA | Berks County | Commercial Real Estate Financing
- 12/20/10 01:48 PM
I was discussing commercial real estate financing with another agent this evening. This agent is very experienced in real estate in general, but she mostly works with residential real estate. I realized that many if not most real estate agents don't fully understand the difference between financing residential and commercial real estate. I'm sure that this is true of most residential real estate investors as well. Commercial mortgages do not fit into the neat little boxes that residential mortgages do. Figuring out the best way to finance a commercial real estate deal is just as much an art as it is a … (0 comments)
berks county: Downtown Reading | Berks County | PA | What is Commercial Real Estate?
- 12/19/10 11:51 AM
Yesterday I mentioned in my blog that several residential real estate investors are not clear about what commercial real estate is. I mentioned a few of the commercial real estate opportunities that exist in downtown Reading, PA, but my list was definitely not meant to be comprehensive. One opportunity that I didn't mention yesterday was parking garages and self storage. Downtown Reading, PA doesn't have the serious parking problems that I've seen in several of the cities that I've done business in. In part this is because there are several investors that have small garages that they rent for parking. These range … (0 comments)
berks county: Greater Reading | Berks County | PA | What is Commercial Real Estate
- 12/18/10 02:21 PM
Earlier today I was speaking with a friend of mine who invests in residential real estate. It's occurred to me that almost all of my friends invest in real estate, but that's not the subject of my blog today. During our conversation, I realized that although my friend knew a lot about residential real estate, she didn't have a great understanding about what I mean when I talk about commercial real estate in downtown Reading, PA. She thought that only real estate moguls invest in commercial real estate. She thought that commercial real estate meant multimillion dollar office building and regional … (0 comments)
berks county: Downtown Reading | Berks County | PA | Investing in Commercial Real Estate
- 12/14/10 01:17 PM
I was speaking with a friend of mine today that is planning to invest in some commercial real estate in downtown Reading, PA. He is one of the out of state investors that I've mentioned in previous blogs that has been attracted to Reading, PA by the incredible cap rates. We have seen a few great properties, but there is one in particular that he would like because of the opportunity to add value with some re-leasing. Unfortunatly this property is slightly out of his price range. Now sometimes in this situation I might offer to invest with him, but with the recent move … (0 comments)
berks county: Downtown Reading | Berks County | PA | Rent to Own
- 12/12/10 02:08 PM
Currently my focus in real estate is leasing and selling commercial real estate in downtown Reading, PA. However, I am still involved in the occasional residential transaction. I recently moved here from NJ, and today I listed my old home in Collingswood, NJ as a rent to own. To my pleasant surprise, I had a showing scheduled within 2 hours of my listing, and provided everything goes as we discussed, we'll be filling out their paperwork on Wednesday. To those of you who listen to the gloom and doom in the media, this story probably sounds completely unbelievable. What most people don't realize is … (1 comments)
berks county: Downtown Reading | Berks County | PA | Investing in Commercial Real Estate
- 12/06/10 12:56 PM
"Why are you moving to Reading, PA?" That's a question that I've heard several times over the last few months. My answer seems to come as a great surprise to most people. My wife and I decided to move to Reading, PA because of the incredible opportunities in commercial real estate in Reading. I've spent the past several years working in many areas of commercial real estate, and I've lived all over the US (ME, MA, IL, CA, VA, MS, AL, LA, TX, and NJ in case you were wondering). I've spent quite a bit of time analyzing markets and looking at deals, and … (2 comments)
berks county: Reading | Berks County | PA | Real Estate Investing
- 12/05/10 01:28 PM
Welcome to the grand opening of my blog. I've been involved in the sale and financing of commercial and investment real estate throughout the US since 2003. I just moved to Reading, PA primarily because I believe that the city presents many spectacular real estate opportunities. I have just joined Richard A. Zuber Realty, and I hope to assist real estate owners and investors in navigating this complex market. Please let me know if there are any topics that you would like discussed in my blog. … (1 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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Like most commercial real estate, value is created in retail properties through effective leasing. One important aspect to consider when leasing your retail real estate is your tenant mix. In other words, you need to consider how your tenants businesses relate to one another. Here are five questions to ask your self when evaluating a new tenant for your retail property in Reading, PA:
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