We often find ourselves complacent with “working” results and apply the why fix it, if its not too broken attitude. This applies to the landscaper, email services, car insurance, and even the barber who gives us bad hair cuts, yet we continue to go to him out of habit. But a capital partner? Having the right commercial real estate capital partner(s) can not only deliver more returns into your pocket, it can grow your business significantly.
What’s next? How do you really get started in the business?
Just 18 months ago this was my challenge. And while it’s not science there are some things that you can do to make your transition as effective and efficient as possible. Most of these pointers will seem like common sense, but actually practicing them can be a bit harder, so here goes…
An in-depth analysis of the private student housing market at University of Wisconsin conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth student housing market research reports on leading Universities in the United States.
Total Enrollment: UP 1.35%
Total enrollment at the University of Wisconsin’s flagship campus in Madison for the fall of 2018 clocked in at 44,411 – breaking the previous school-record set last fall by 591 students. In general, enrollment growth at UW-Madison has been slow but steady, increasing a total of 741 students between 2010 and 2016. By contrast, over the past two academic years (AY) enrollment has grown by 1,075 total students.
The longer that you’re in the commercial real estate (CRE) industry, the probability increases that you’ll have clients or will be contacted by prospective clients who will want / need your expertise on their CRE exit strategy. To best advise your clients, you’ll need extensive knowledge on the options available while managing to “Staying in your Lane” with regards to your licensing. Simply put, refer your clients to their attorney for legal advice, their CPA for tax implications, and so on.
You’ve been asked to sell an income producing property by a property owner or client. Aside from determining market value, gathering the necessary due diligence information, and other commercial real estate related tasks, an experienced CRE professional will have a discussion with the seller about their post-sale plans.
Certainly for the last decade or longer, the drugstore sector has been viewed by many single tenant investors, as a bond-like investment, in the sense that they had investment grade ratings (this has changed over the last decade, in part, due to the additional debt that has been incurred for various mergers in the sector); and predictable, stable income streams that were afforded due to absolute NNN lease structure of most drugstore tenants’ leases.
There has been some concern, over the years, regarding whether these assets afford an inflation hedge, since in the case of Walgreens-Boot Alliance, that the rental income was stabilized or ‘flat’ for almost 75 years. The CVS Health and Rite Aid lease structure can vary; but do afford some scheduled increases.
Most people have heard or even used the expression “Stay in Your Lane,” and almost everyone would apply it to when they are behind the wheel of an automobile. But it can have significant meaning in the world of Commercial Real Estate (CRE). We live in an age of technology where the internet and social media have increased the amount of information available and the speed at which someone can obtain information about almost anything, including commercial properties.
This access has certainly benefitted the general public as would-be buyers and tenants can peruse the various websites anonymously to search for the right property that meets their needs, and only after identifying such property, will they engage the assistance of an owner or listing broker. However, this accessibility to information has also “allowed” or even encouraged real estate brokers to venture into areas where they may not have comprehensive and thorough knowledge.
As most of the country is finally digging out from a long and snowy winter, it’s a great time for commercial real estate (CRE) professionals to add value to their existing client base. What is the one thing that we hear so often from our colleagues and clients? Answer – “there’s not enough hours in a day,” especially with continual interruptions thanks to the growth of mobile technology.
As their trusted advisor, you can lessen their load while making you more valuable to them by doing one easy, yet often over-looked task. Each spring, I make the time to visit each of my landlord and seller client properties for the sole purpose of looking at them with a fresh set of eyes, just as a prospective tenant or buyer would do on their first time into the property. CRE professionals, landlords and sellers often get tunnel vision after pulling into their property day after day, making it too easy to overlook deferred maintenance items.
Commercial Real Estate (CRE) transactions range from the fairly simple to immensely complex! The degree of transaction complexity can be mitigated by an educated and understanding commercial real estate broker who has expertise in your type of transaction and the resume to prove it.
A broker’s education and experience on specific sides of the transaction make he/she more understanding and knowledgeable of the other side’s needs. If you’re a commercial real estate landlord, you should seek out the expertise of a broker / agent with a significant amount of Landlord Rep. experience as the needs for a landlord typically differ from those of a tenant. It would also be beneficial to you if that broker/agent also has tenant representation experience, so they understand what typical expectations are from small business tenants to corporate tenants, etc.
Every one of us is a broker. That is to say, we’re all using someone else’s money. Whether you’re a baby-faced runner at CBRE or quarterbacking a big-time pension fund, you’re still a broker—you need to sell your deal to somebody, whether to a mom & pop investor or a bored investment committee. It’s not your money and, for that matter, it’s usually not theirs. The only true principals in real estate may be the millions of 401K retirees who are the capital behind every major player in the industry. Even the old rich guys still in the game are using some else’s money; in their case, it’s their kids’.
Commercial brokerage is a bit like bull-riding. Only a handful of agents, the best, last much beyond their twenties, the vast majority unable to deal with the pressure of having their cash flow meter reset to zero every January 1st.
To fully understand and thrive in commercial real estate one has to understand much more than the simple “bricks and mortar” that make up a building. A successful commercial real estate broker (developer, investor, or lender) wears many hats and should have knowledge across a variety of different industries and disciplines.
LDCRE.com website hosts three separate companies that work together to best serve our community. LDCRE owns and manages the technologies and code powering the online marketplace. LDCRE Investments is a commercial real estate brokerage firm focusing solely on buy-side referral brokerage, connecting its registered investors to listing agents on matching investments. Leavitt Capital is real estate investment banking firm facilitating debt and equity capital for commercial real estate.