Commercial/ Investment C Flashcards
Readily available and have smaller management requirements. Many real estate professionals start their commercial careers selling _______investment properties. The market value of single-family investment property tends to be influenced by general market conditions and comparable single-family property sales.
Single-Family Residential
The next step up the ladder for investors. These types of properties range from small apartment buildings consisting of two to four units to large apartment complexes with hundreds of units. Smaller _____ _____residential property may attract investors who are interested in income generated from renting the apartments to tenants. Typical investors in large multi-family units are often larger companies adept at acquiring and managing these properties.
Multi-Family Residential
May include former single-family homes converted into commercial space, insurance, or doctor’s offices, as well as small, medium, and large _____ _____ located in the suburbs, and downtown high rises. _______space may be located in mixed use buildings or loft buildings. Investors in commercial _____ ________ are interested in the rental income received from leasing the space to tenants.
Office Buildings
Diverse and unique when compared to all other types of ______investment. In the ____ market, the ability of the property to produce an acceptable income stream will depend upon factors that are unique to this property. A wide range of property types is available to buyers interested in purchasing investment property for _____ purposes. Typical examples include:
Small freestanding, single tenant properties
Strip shopping centers
Large regional shopping malls Megamalls
Retail
Often purchased by an investor who will use the property for a special purpose. Commercial ______ investment represents a broad category and includes investment in:
Factories
Warehouses
Distribution or service centers
Research and development facilities
Distribution centers
Industrial
This is another type of commercial investment property that can be acquired by investors. As with most categories of real estate, location is usually the first item on the list of considerations with regard to what can be done with property. Additionally, there is a long list of site considerations to address as well, including zoning, condition of title, and characteristics of the land itself. All of these can impact the investor’s decision whether to purchase the property.
Land
Types of real estate investment properties
MR SOIL
Multi-family
Residential
Single-family
Office
Industrial
Land
5 size/design categories of office buildings
HLMSG
High-rise Lowrise Mid rise Garden /subterranean Skyscrapers
Class category characteristics of office buildings:
BAT O BALL
Building (amenities and services)
Age
Tenant (profiles)
Occupancy levels
Building management
Architectural design
Less rates
Location
The most desirable and new buildings in a particular market with the best design, superior construction and amenities, and features. These properties attract the highest quality tenants.
Class A –
An excellent building, just not the best around; it is usually older and/or less modern in its architecture or may have lost status since a new Class A office space opened nearby. These properties attract “not quite” Class A tenants.
Class B
May consist of two types: Older buildings, still functionally viable, but not as favorably located as Class B office buildings and new buildings constructed to be highly functional. Class C buildings may be found in what are now considered secondary locations and attract secondary market tenants who are price driven.
Class C
Older, functionally obsolete buildings that need extensive renovations or major repairs. These properties are prime candidates for rehabilitation projects or teardown.
Class D
Are typically quoted as price per rentable square foot for base rent.
Percentage leases are often used, which means the tenant pays, in addition to their
base rent, some percentage of their gross sales.
Office tenants are also responsible for their proportionate share of common area
maintenance, taxes, and insurance, which are paid as additional rent.
These tenants who are part of a this type of center or mall may contribute to a promotional fund for advertising and special events.
These type of leases are
Retail Leases
The size of this retail property ranges from Small to large.
The description of this property could be anything.
what is this property?
Freestanding/Single Tenant Storefront
The size of this retail property is up to 30,000 feet and the description is generally at least three stores, wide range from groceries to services
Strip center
The size of this retail property ranges from about 30,000 ft.² to up to 100,000 ft.² and generally built around supermarket anchor tenant.
Neighborhood center
The size of this retail property ranges from about 100,000 ft.² to about 300,000 ft.²and his description is multiple anchor, wide range of goods and services.
Community shopping Center
The size of this retail property ranges from about 250,000 ft.² to 900,000 ft.² and it’s description states that it has a wide range of merchandise often enclosed.
Regional mall
This retail property ranges and size of about 500,000 ft.² to 1,500,000 ft.² it’s description states that it is often build around three or more full line department stores.
Super regional or megamall
Also referred to as ingress/egress; the relative ease with which customers can get to a retail establishment.
Accessibility
A standard measurement for land; one ___ is equal to 43,560 square feet.
Acre
The amount of rent charged in addition to the base rent, which includes items such as common area maintenance charges, and tax, utility, insurance escalations, and pass throughs.
Additional Rent
Major department or chain store strategically located at shopping centers to give maximum exposure to smaller satellite stores. A center may have several anchor tenants. Also called a Magnet Store.
Anchor Tenant
A right that goes along with ownership of real property; usually transferred with the property, but may be sold separately. (This is a legal term referring to both physical and non-physical appurtenances.)
Appurtenance
