• Key Terms Used in Commercial Real Estate Key Terms Used in Commercial Real Estate

    0 comments / Posted on by Steven Rivera

    Key Terms Used in Commercial Real Estate

    Regardless of industry, most professionals use special terminology to communicate with one another. Pilots, engineers, scientists, farmers, accountants and commercial real estate investors all have to understand the language associated with their profession — and it can get confusing.
    If you're new to commercial real estate, these 13 key terms to help you in becoming a pro when it comes to the lingo.

    1. Letter of Intent (LOI)

    A letter of intent is an agreement(s) between two or more parties before an actual agreement, such as a lease, is finalized. It is similar to a term sheet or memorandum of understanding (MOU). While LOIs may not be binding, provisions of them can be, e.g., non-disclosure and exclusivity. The intent is to protect both parties in the transaction until the transaction is executed. This is "The Letter" you will be sending out when you are ready to go full force into the Commercial Real Estate Investment scene.

    2. Build-to-suit
    A building is designed and tailored for a specific tenant, often because the tenant is unable to find suitable space in the speculative market. Sometimes (but not always), a build-to-suit project includes specific design features not commonly found in the speculative market, thus compelling the tenant to have a special facility built. The build-to-suit project is usually contracted with a developer who owns and operates the completed facility occupied
    by the tenant. Generally, a build-to-suit project becomes a single-tenant building upon completion.

    3. Direct Vacancy Rate
    The total amount of physically vacant space divided by the...

    Regardless of industry, most professionals use special terminology to communicate with one another. Pilots, engineers, scientists, farmers, accountants and commercial real estate investors all have to understand the language associated with their profession — and it can get confusing.
    If you're new to commercial real estate, these 13 key terms to help you in becoming a pro when it comes to the lingo.

    1. Letter of Intent (LOI)

    A letter of intent is an agreement(s) between two or more parties before an actual agreement, such as a lease, is finalized. It is similar to a term sheet or memorandum of understanding (MOU). While LOIs may not be binding, provisions of them can be, e.g., non-disclosure and exclusivity. The intent is to protect both parties in the transaction until the transaction is executed. This is "The Letter" you will be sending out when you are ready to go full force into the Commercial Real Estate Investment scene.

    2. Build-to-suit
    A building is designed and tailored for a specific tenant, often because the tenant is unable to find suitable space in the speculative market. Sometimes (but not always), a build-to-suit project includes specific design features not commonly found in the speculative market, thus compelling the tenant to have a special facility built. The build-to-suit project is usually contracted with a developer who owns and operates the completed facility occupied
    by the tenant. Generally, a build-to-suit project becomes a single-tenant building upon completion.

    3. Direct Vacancy Rate
    The total amount of physically vacant space divided by the...

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  • Attributes to Look for in a Commercial Real Estate Broker Attributes to Look for in a Commercial Real Estate Broker

    0 comments / Posted on by Steven Rivera

    Attributes to Look for in a Commercial Real Estate Broker

    Most cities are full of commercial real estate brokers that have a great deal of experience, market knowledge, tools, & resources. Many are also very busy and maybe are not as transparent as you would like them to be. Below are 5 things to consider as you interview your next commercial real estate agent.

    The Experience You Need on Your Side

    25 years of “real estate” experience is not the same as 25 years of experience doing site selection and negotiating commercial lease terms and contracts. For example someone with 8 years in residential real estate experience and 2 years as a commercial realtor is not the same as a person with 10 years doing ONLY commercial real estate. Additionally if a brokerage company has a combined 50 years commercial real estate experience does not mean that the person assigned to you has 50 years. That person could be new and only have 1 year under their belt. They key is to ask specifically who you will be working with and what their experience is in the niche you are looking for.

    No Conflicts of Interest

    Most commercial real estate companies are full service meaning they represent tenants and landlords. This has the potential to be a conflict of interest. What if the tenant representative working for you worked for the commercial real estate company who lists the property that you are negotiating for? Your agent sits in the desk next to the agent that is listing the property. Sounds...

    Most cities are full of commercial real estate brokers that have a great deal of experience, market knowledge, tools, & resources. Many are also very busy and maybe are not as transparent as you would like them to be. Below are 5 things to consider as you interview your next commercial real estate agent.

    The Experience You Need on Your Side

    25 years of “real estate” experience is not the same as 25 years of experience doing site selection and negotiating commercial lease terms and contracts. For example someone with 8 years in residential real estate experience and 2 years as a commercial realtor is not the same as a person with 10 years doing ONLY commercial real estate. Additionally if a brokerage company has a combined 50 years commercial real estate experience does not mean that the person assigned to you has 50 years. That person could be new and only have 1 year under their belt. They key is to ask specifically who you will be working with and what their experience is in the niche you are looking for.

    No Conflicts of Interest

    Most commercial real estate companies are full service meaning they represent tenants and landlords. This has the potential to be a conflict of interest. What if the tenant representative working for you worked for the commercial real estate company who lists the property that you are negotiating for? Your agent sits in the desk next to the agent that is listing the property. Sounds...

    Read more

  • Reasons Why You Should Hire a Real Estate Professional When Buying or Selling Your Home Reasons Why You Should Hire a Real Estate Professional When Buying or Selling Your Home

    0 comments / Posted on by Steven Rivera

    Reasons Why You Should Hire a Real Estate Professional When Buying or Selling Your Home

    Whether you are buying or selling a home it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. But in this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO.’

    The reasons you NEED a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

    What do you do with all this paperwork?
    Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

    Ok, so you found your dream house, now what?
    There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

    Are you a good negotiator?
    So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best...

    Whether you are buying or selling a home it can be quite the adventure, which is why you need an experienced real estate professional to guide you on the path to achieving your ultimate goal. But in this world of instant gratification and internet searches, many sellers think that they can ‘For Sale by Owner’ or ‘FSBO.’

    The reasons you NEED a real estate professional in your corner haven’t changed but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

    What do you do with all this paperwork?
    Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

    Ok, so you found your dream house, now what?
    There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

    Are you a good negotiator?
    So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyers (who want the best...

    Read more