Advantages/Disadvantages to Repositioning a Commercial Asset

There are many pro’s and con’s to repositioning a Commercial asset. You need to weigh out the specifics that pertain to your situation and to your property.
 
Listed below are just a few of the considerations you would want to address in determining the best approach for your circumstances.
 
Advantages of Repositioning-using existing structure (just to name a few)
  • Existing building can save you money on construction costs
  • Generally faster to renovate
  • Heritage and historical value and elements
  • Increased sales price per square foot
  • Value added for community
Challenges of Repositioning-using existing structure (just to name a few)
  • Getting approvals can be very time consuming
  • Older access, entrance, exits may not work with new business model
  • For the most part you must work within the current floor plan
  • Must have neighbor buy in, otherwise they can complain about anything causing delays
Watch this video to learn more:
 
Be sure to attend our weekly FREE training…
 
Register HERE for Monday Night Live Investor Agent Training! This weekly FREE training is at 7:00 pm EST Time each Monday.
 
This link will register you for every scheduled Monday Night Live Investor Agent Class.
 
 
A portion of all our proceeds goes towards the support of the Healing House Foundation. The Healing House Foundation is a 501(c) (3) non-profit public charitable organization. Our main goal is to provide housing for those in need. We seek to assist the homeless, single moms and abused women, wounded and disabled veterans, and those recovering from alcohol and drug addiction.
 
 
 
Attention Investors and Agents
  • Are you looking to grow your business?
  • Need to connect with aggressive like-minded people like yourself?
  • We have all the right tools and the knowledge to properly put those tools to use.
  • Visit: http://globalinvestoragent.com/join-gia-teamto see what we can offer and to schedule your FREE consultation!

Why Should I Reposition a Commercial Asset?

What is the BIG Why?
 
In 2 words “Competitive Advantage”.
 
What does asset repositioning mean?
 
Asset repositioning is an approach that positively addresses economic, environmental, and social equity issues and implementing the necessary changes to remain competitive.
 
What is reposition in commercial real estate?
 
Real Estate Asset Repositioning consists of renovations and capital improvements on properties in order to become more competitive, increase value, and to change their place in the marketplace. This can range from renovations that upgrade a building to be more in line with modern buildings, to a complete overhaul that changes the building’s purpose.
 
What are the main benefits of repositioning?
 
In addition to increasing overall value, repositioning energizes your business by giving the market a fresh look at your improved asset and creates new motivation for brokers and tenants who might otherwise not consider your building.
 
Watch this video to learn more:
 
 
Be sure to attend our weekly FREE training…
 
Register HERE for Monday Night Live Investor Agent Training! This weekly FREE training is at 7:00 pm EST Time each Monday.
 
This link will register you for every scheduled Monday Night Live Investor Agent Class.
 
 
A portion of all our proceeds goes towards the support of the Healing House Foundation. The Healing House Foundation is a 501(c) (3) non-profit public charitable organization. Our main goal is to provide housing for those in need. We seek to assist the homeless, single moms and abused women, wounded and disabled veterans, and those recovering from alcohol and drug addiction.
 
 
Attention Investors and Agents
  • Are you looking to grow your business?
  • Need to connect with aggressive like-minded people like yourself?
  • We have all the right tools and the knowledge to properly put those tools to use.
  • Visit: http://globalinvestoragent.com/join-gia-teamto see what we can offer and to schedule your FREE consultation!

Investing In Commercial Properties

Regardless of the property type, the agent or investor will typically use specific types of data to complete their market analysis. There is information on the property’s location, and then there is information regarding the specific property.
 
Market data
 
Market data deals with people. Economic, demographic, and lifestyle data is used to help determine the demand for a property. Never thought that economics class would come in handy, did you? As a refresher course, the breakdown works like this:
 
Economic data refers to data regarding employment by industry. Employment is an important economic indicator, as changes in employment changes demand for real estate. In other words, more people, more buying. Simple, right?
 
Macroeconomics pertains to the study of the overall economy. The conditions of the national economy can have a direct effect on the local economy. The study of the local economy would be called microeconomics. When industries and services experience a change in demand for their products and services, the area in which the industry is located will be affected.
 
In simpler terms, supply and demand of people is not enough; there are other factors you must consider.
 
Learn more by downloading my free ebook!
 
Our Free eBook Reveals…
  • How to get started in Commercial Real Estate
  • Office and Industrial Commercial Real Estate
  • Terms and Definitions important to successful negotiations/business development
Click below for immediate access to this informative eBook:
 
 
Be sure to attend our weekly FREE training…
 
Register HERE for Monday Night Live Investor Agent Training! This weekly FREE training is at 7:00 pm EST Time each Monday.
 
This link will register you for every scheduled Monday Night Live Investor Agent Class.
 
 
A portion of all our proceeds goes towards the support of the Healing House Foundation. The Healing House Foundation is a 501(c) (3) non-profit public charitable organization. Our main goal is to provide housing for those in need. We seek to assist the homeless, single moms and abused women, wounded and disabled veterans, and those recovering from alcohol and drug addiction.
 
 
Attention Investors and Agents
  • Are you looking to grow your business?
  • Need to connect with aggressive like-minded people like yourself?
  • We have all the right tools and the knowledge to properly put those tools to use.
  • Visit: http://globalinvestoragent.com/join-gia-teamto see what we can offer and to schedule your FREE consultation!

Transitioning from Residential to Commercial

Commercial real estate differs in several key areas from residential real estate. If you’re going to make the switch…whether you’re looking at it from an Agent’s or an Investor’s perspective, then you should learn the differences between these two worlds.
 
Did you know…the average national salary for a commercial realtor is $85,000 a year vs. $39,000 a year for residential Realtors?
 
If you’ve been selling residential real estate and would like to make the move to commercial property you have probably figured it’s somewhat familiar but also different enough to present new and unique opportunities.
 
Well, you are right!
 
Watch this video to learn more:
 
Be sure to attend our weekly FREE training…
 
Register HERE for Monday Night Live Investor Agent Training! This weekly FREE training is at 7:00 pm EST Time each Monday.
 
This link will register you for every scheduled Monday Night Live Investor Agent Class.
 
 
A portion of all our proceeds goes towards the support of the Healing House Foundation. The Healing House Foundation is a 501(c) (3) non-profit public charitable organization. Our main goal is to provide housing for those in need. We seek to assist the homeless, single moms and abused women, wounded and disabled veterans, and those recovering from alcohol and drug addiction.
 
 
Attention Investors and Agents
  • Are you looking to grow your business?
  • Need to connect with aggressive like-minded people like yourself?
  • We have all the right tools and the knowledge to properly put those tools to use.
  • Visit: http://globalinvestoragent.com/join-gia-teamto see what we can offer and to schedule your FREE consultation!

What is Cap Rate? Cap Rate Explained!

Cap rates are measures used to estimate and compare the rates of return on multiple commercial or residential real estate properties. 
 
Cap Rates are calculated by dividing your Net Operating Income (NOI), or Rent minus Expenses, by the market value of a property.
 
Step 1: Determine your asset value. 
 
Step 2: Determine net annual operating income (NOI).
 
Step 3: Subtract operating expenses. 
 
Step 4: Now, divide your net income by your asset value
 
Watch this video to learn more:
 
 
Be sure to attend our weekly FREE training…
 
Register HERE for Monday Night Live Investor Agent Training! This weekly FREE training is at 7:00 pm EST Time each Monday.
 
This link will register you for every scheduled Monday Night Live Investor Agent Class.
 
 
A portion of all our proceeds goes towards the support of the Healing House Foundation. The Healing House Foundation is a 501(c) (3) non-profit public charitable organization. Our main goal is to provide housing for those in need. We seek to assist the homeless, single moms and abused women, wounded and disabled veterans, and those recovering from alcohol and drug addiction.
 
 
Attention Investors and Agents
  • Are you looking to grow your business?
  • Need to connect with aggressive like-minded people like yourself?
  • We have all the right tools and the knowledge to properly put those tools to use.
  • Visit: http://globalinvestoragent.com/join-gia-team to see what we can offer and to schedule your FREE consultation!