Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Is Commercial Real Estate for You?
    Is Commercial Real Estate for You?
    Is Commercial Real Estate for You?
    Ebook127 pages1 hour

    Is Commercial Real Estate for You?

    By Greg Biggs

    ()

    Read preview

    About this ebook

    Guide to careers in commercial real estate. Touching on the different product types and various disciplines in the industry.
    LanguageEnglish
    PublisherBookBaby
    Release dateAug 21, 2017
    ISBN9781543907070
    Is Commercial Real Estate for You?

    Related to Is Commercial Real Estate for You?

    Related ebooks

    Teaching Methods & Materials For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      Real Estate Investing in 2021 Comes Down to 5 ‘Un’ Words

      Nov 10, 2020

      Unmatched. Unfortunate. Uncertain. Have you noticed a familiar pattern in some of 2020’s most-used words? When America’s content marketing leaders were recently surveyed for their most-unloved buzzwords of 2020, their top pick was “unprecedented.” Ca

      4 min read

    • Article

      The Myth of Passive Real Estate Investing

      Jun 6, 2022

      In my financial planning firm, we focus on serving clients in their 30s to their 50s — and we see firsthand how popular the idea that real estate is a way to get rich (relatively) quick is. That would be fine if real estate was a no-brainer passive-i

      5 min read

    • Article

      Fasten Your Seat Belts: Commercial Real Estate Is Taking a Flight to Quality

      Aug 20, 2019

      The commercial real estate market has been so strong the past few years that property appreciation alone has turned otherwise marginal deals into windfalls. A low-risk/high-return market atmosphere has conditioned today's real estate investors into b

      2 min read

    • Article

      Alternatives To Bank Financing

      Jun 4, 2020

      Alternatives To Bank Financing
      5 min read

    • Article

      15 Best Foreclosure Sites for Finding Properties

      Jan 6, 2021

      You may remember that foreclosures were a big part of the Great Recession. As the economy cratered, foreclosure filings soared. In the first half of 2010 alone, 1.65 million U.S. homes spun into foreclosure, according to data from ATTOM Data Solution

      3 min read

    • Article

      What Drives Rental Prices?

      Nov 28, 2019

      Recently I purchased a new property which came with an associated rental appraisal from the real estate company’s in-house property management team. It was a nice bit of marketing, but not much else. I have always struggled with real estate companies

      2 min read

    • Article

      How to Build a Diversified Real Estate Investment Portfolio

      Nov 9, 2020

      Recent survey research by National Real Estate Investor magazine indicates that nearly 60% of high-net-worth investors are expected to increase their allocation to investment real estate in the next 12 months. Millions of Americans invest in alternat

      4 min read

    • Article

      A Decade After The Bubble Burst, House Flipping Is On The Rise

      Apr 17, 2018

      House flipping is at an 11-year high in the U.S. New research shows borrowers with good credit like flippers, and not subprime borrowers, were mainly responsible for the crash. Is another bust coming?

      5 min read

    • Article

      Trans-tasman Tax Issues

      Dec 2, 2021

      Matthew Gilligan is a property investor, developer and tax adviser. He is managing director of chartered accounting firm Gilligan Rowe & Associates, where he heads the specialist property and asset planning divisions. Kris Pedersen of Kris Pedersen

      5 min read

    • Article

      Build-to-rent Will Cost

      Jun 27, 2019

      Build-to-rent Will Cost
      2 min read

    • Article

      To Trust Or Not To Trust

      Aug 1, 2019

      To Trust Or Not To Trust
      6 min read

    • Article

      6 Apartment REITs to Buy for Steady Yields

      Jun 10, 2019

      In a world of minuscule interest rates, investors are searching far and wide for yield. But many of them don't need to look beyond the front door - if they live in an apartment. Apartment real estate investment trusts (REITs) are well-poised to deliv

      7 min read

    • Article

      Creating Extra Value

      Jun 4, 2020

      Creating Extra Value
      5 min read

    • Article

      Real Estate

      Dec 6, 2019

      Real Estate
      1 min read

    • Article

      Renting For Profit

      Sep 30, 2021

      Renting For Profit
      6 min read

    • Article

      Today’s Real Estate Market Requires Extra Vigilance

      Jun 22, 2021

      “My 80-year-old father is selling and flipping properties like crazy, working with a real estate broker I have very bad feelings about. Do you have some suggestions of what I can do to help minimize the chances of Dad being taken advantage of? Thanks

      4 min read

    • Article

      No Children? Why You Still Need an Estate Plan

      Feb 11, 2019

      Estate planning is an extremely personal process, not a one-size-fits-all endeavor. When an individual has no close relatives (other than perhaps a spouse), the decisions required to prepare an estate plan can sometimes feel overwhelming. Over the

      3 min read

    • Article

      A Better Way To Buy And Sell

      Oct 16, 2019

      A Better Way To Buy And Sell
      2 min read

    • Article

      An IPA Isn't Just a Beer, It's a Secret to Commercial Real Estate Investing

      Jan 15, 2019

      The Pacific Northwest grows more than 75% of the hops in the United States. The Willamette Valley, where my office is located, sits on the 45th parallel, where our abundant rainfall, moderate climate and fertile soil provide ideal conditions for hop

      3 min read

    • Article

      Once You Create a Living Trust, Don’t Forget to Fund It

      Oct 26, 2020

      Far too often, when I review prospective clients’ trust documents and financial statements, I find that their accounts haven’t been titled in the name of the trust they created. Did they mistakenly believe that simply by having a trust, their assets

      3 min read

    • Article

      A Risk-Averse Approach to Real Estate Investing

      Mar 22, 2021

      The highest profile professional real estate developers and investors are typically those who have won big or lost big — they made their names taking oversized risks that in some cases paid off handsomely and in other cases crashed and burned. But re

      3 min read

    • Article

      Dogged Determination

      Jul 29, 2021

      Dogged Determination
      4 min read

    • Article

      Stand Out In A Sea Of Agents

      Mar 31, 2020

      Stand Out In A Sea Of Agents
      3 min read

    • Article

      Flip For Fun And Profit

      Apr 1, 2020

      Flip For Fun And Profit
      8 min read

    Related categories

    Reviews for Is Commercial Real Estate for You?

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      Is Commercial Real Estate for You? - Greg Biggs

      GETTING STARTED

      Commercial real estate is a dynamic industry that’s rich with opportunity. It’s also unique, because in one way or another, it touches every type of business. Name a company, and there will be some sort of commercial real estate involved.

      You might say, Wait. What about online businesses, or the cloud? Well, the cloud doesn’t exist in outer space, but on Earth in data centers. Online companies couldn’t function without data centers, and many, including giants like Amazon, also require office space for programmers, marketers, and other employees, as well as warehouse space to store and distribute the products they sell.

      Because it’s so broad, commercial real estate can appear to be confusing. After all, there are more than 90 fields of work (not all will be covered in this book) in the industry! But once you understand the different product types and the disciplines that work within them, you’ll see it’s not complicated at all.

      Narrowing the Field

      When pursuing a career in commercial real estate, it’s important to narrow your field of interest as soon as possible. You’ll have a head start if you can build your college coursework around the discipline. And as you interview with prospective employers, you’ll stand out if you have a clear focus and thoughtful plan.

      The product types we will discuss in this book are: land, office, industrial, data centers, retail, hospitality, healthcare and multifamily. (Another, mixed-use, refers to a combination of one or more product types.)

      The various disciplines we’ll review are: architecture, appraisal, capital markets, construction, development, leasing, investment, management, research and analytics, and tenant representation.

      The following illustration may help you visualize how it all works. (The various product types are inside the globe, and the disciplines and fields that touch them are surrounding the globe.

      CHAPTER 2

      LAND

      Many years, ago Will Rogers said something that is quoted still today: Put your money in land because they aren’t making any more of it. How true and prophetic. However, land is significantly different from other real estate product types because there is no cash flow and there is a lack of sales capability during down cycles.

      Speculative Land Investing

      The challenge with land investment is that there is no income or cash flow from land. It is purchased on the hope and optimism that future development will catch up to the site and make the site more valuable during the hold period or that the investor can create a development on the site that will create value increase for the land and the new development.

      When buying speculative investment land, success is largely determined at the time of purchase. If the site purchased is the wrong piece at the wrong time for too much money, then the hold period is longer and profit is reduced, or eliminated, creating a loss. A land investor needs to be focused, disciplined and unemotional about the site or the development...which is easier said than done. Emotional purchases have taken down many investors.

      To buy a land site and hold it for appreciation takes time and patience. Although land does not have extensive income/expense projections, there are other factors that can make an investment profitable or not. These factors include zoning, utilities, municipal desire, competition, demand, hold period, market conditions, and of course, the investment amount.

      The goal with land investment is appreciation. Since land is not liquid, it is commonly thought of as risky. But with this risk comes large appreciation if the right choices are made. Historically, the appreciated value and subsequent wealth created with land is what draws its investors.

      The basic idea is to evaluate land sites and determine where the development growth is headed and get in front of it. Some investors will say, If you can see the roads, you are too late to make the best speculative buy.

      What long term investors look for are land site (tracts) that are poised to take advantage of future roads, water/sewer utilities and advantageous zoning. When land investors find the convergence of these factors, an investment is made. The final question is, If I buy it, when will I sell it?

      This is the hardest question to answer. If the right evaluation has been done but the real estate cycle has been misread, the investment will under-perform. However, if the cycle is read well, the profits will be well worth the hold period.

      Cypress Waters 2011

      Land Development

      Development of land takes vision and capital. The below developments started out as raw land in favorable locations with the developers having a vision and master plan for the land. Although full development takes years to complete, the final product will have numerous uses that complement the projects, creating a fully master planned community that includes offices, hotels, multi-family, retail businesses and other uses that attract businesses and people.

      Granite Park 2004

      The appropriate purchase of a land site for the developer’s concept is critical to the development’s success. For the development to work financially, the fundamentals are the same as the long term investor. The site will ultimately need the appropriate zoning, the utilities to

      Enjoying the preview?
      Page 1 of 1