Wealth Opportunities in Commercial Real Estate: Management, Financing, and Marketing of Investment Properties

Focus on Specific Property Types in Specific Geographic Locations

Why narrow your concentration? There are several advantages.

First, by focusing on a specific property type, you learn the language and nuances that are unique to that property type. You learn to focus on issues that are associated with that type of real estate. For example, if you are involved with shopping centers, percentage rent clauses may have to be negotiated. What is a percentage rent clause and what are the usual and customary points of negotiation associated with this type of provision? If a supermarket is doing annual sales of $200 per square foot, does that mean they are doing well or does it take $400 per square foot to have a successful store? If you are working with industrial property, what does it mean when someone says the “clearance is twenty feet” or that the rear of the building is “dock high”? Mobile home parks have “doublewides” and “triplewides” and remetered utilities; apartments may have rent-control laws and problems associated with a high turnover rate as well as issues surrounding furnished versus nonfurnished units; hotels track daily occupancy rates. What does a “star report” contain and what are the differences between three-, four-, or five-star ratings? When you are involved with medical office buildings, you know from experience that the tenant improvement costs are significantly higher than those for generic office space. You also learn how to create a tenant mix that generates ...