Aug
05
Commercial Real Estate Definitions – From O to Z
Posted By: Ramon Rivas on August 5, 2010 at 8:34 pmCommercial real estate is distinctly different from residential real estate. The terminology is very different and here is a list of new terms from O to Z.
Commercial Terms
Partition Wall: A wall built in the internal area of a suite to divide the general space. For instance, offices built during a tenant improvement project with have partition walls separating them.
Punch List: A punch list runs part and parcel with a walk through of completed construction work. The construction company and client will walk through the area and complete a punch list of items that need to be fixed or modified. .
Shell Space: The interior of a commercial building that has been completed, but does not yet have any tenant build outs. The shell space generally refers to this gross square footage regardless of whether tenant improvements have occurred or not.
Substantial Completion: Notice given by a contractor to the client indicating the property has been completed to the point where a walk through and punch list review are appropriate.
Unlike residential real estate, commercial real estate is primarily considered a business transaction. Learn the terms and you’re well on your way to moving smoothly through the process.
Aug
05Commercial Real Estate Definitions – From A to N
Posted By: Ramon Rivas on August 5, 2010 at 8:27 amCommercial real estate is distinctly different from residential real estate. The terminology is very different and here is a list of new terms from A to M.
Commercial Terms
Build to Suit: A customized design and build approach for a single tenant space usually resulting in a single occupant building which is then leased or sold to the tenant.
Certificate of Occupancy: Issued by a city building department and is a necessary requirement prior to moving into the space.
Common Area Maintenance: Typically an annual charge assessed to tenants based on their percentage of occupancy to pay for maintenance of parking lots, bathrooms and open areas.
Demising Wall: A wall between two separate suites in a building with multiple tenants. In many states, the demising wall must meet specific fire safety standards.
Flex Space: A building providing mixed-use space such as an area combining an office and warehouse.
Gross Square Feet: Usually refers to gross footage of a building. GSF is typically arrived at by calculating the footage from the outside of exterior walls multiplied by the vertical footage.
HVAC: Refers to the climate control systems for a building including heating and air conditioning.
Mechanic’s Lien: A legal claim typically filed by a subcontractor to obtain payment for services rendered. The claim arises under state law and is dependent on each states particular law.
Unlike residential real estate, commercial real estate is primarily considered a business transaction. Learn the terms and you’re well on your way to moving smoothly through the process.
Aug
04Commercial Real Estate – Hard, Hard, Hard Money Loans
Posted By: Ramon Rivas on August 4, 2010 at 7:20 pmFinancing for commercial real estate is a completely different game when compared to residential mortgage loans. It moves much faster and is much more flexible.
Commercial Real Estate – Hard, Hard, Hard Money Loans
Hard money loans for commercial real estate are often a matter of last resort. They aren’t good deals, but they can save a financing situation that has gone critical. Most hard money loans come with significant upfront costs and astronomical interest rates. When you are facing the prospect of losing a commercial property, however, they can be a godsend because they also are granted very quickly.
Hard money loans are considered very risky and are issued by private financing groups, not banks or lenders. The loans tend to be only available as the primary loan on the property, which isn’t that rare a situation in commercial property.
Unlike home loans, hard money loans are all about the potential sales price of a piece of commercial real estate. The party considering lending you money is not going to look at the appraised value of the property. They are going to look at the probably sales price if the commercial real estate has to be sold a few months after making the loan. Depending on the condition of the property, this figure will typically be between 50 and 75 percent of the appraised valued of the commercial property.
Put another way, a hard money loan is a short-term loan designed to get you past an immediate problem. It is undeniably a loan of last resort and is not an ultimate solution to a financing problem with a commercial property. It does nothing other than buy you time, and at a fairly hefty cost. If you are in a tight spot and can resolve the problem with a few extra months time, a hard money loan may be the answer.
Due to the upcoming expansion of the state of Oklahoma, neighborhoods around the city of Tulsa had forecast the rise of their homes’ value.
In Scranton, Pennsylvania, houses are expected to rise in value due to the efforts of the mayor to improve its neighborhoods and convert vacant homes into much more saleable empty lots.
The exterior of the house also affects its asking price. In Alabama, where people take pride in their southern heritage, lawns are kept well-manicured and the houses are well-maintained. Prices are expected to steadily grow.
In Texas, builders still show their confidence in the market through the steady inventory of new homes, especially in Edinburg where land is quite inexpensive. However, prices are expected to be more or less the same due to the prevalence of low-paying jobs in the area.
Real estate agents in Florida are expressing confidence over the strength of the local economy and are expecting market stability as result of low interest rates.
In Nevada, however, prices are expected to drop due to rising inventory, with exception of houses near amenities like golf and spa.
California real estate is expected to maintain its tight inventory as population continues to grow.
The recent slump in house prices, however, have affected several states in the country. Due to several layoffs especially in the manufacturing industry, houses in the Midwest area are lowered in value and homes with price tags of more than a million may be discounted just to get it off the market.
If you are looking for value in your real estate investment, it might pay to determine first which localities are considered most ideal. According to a survey done by CNN, the town of Fort Collins in Colorado is chosen as the best town to live in, followed by Naperville, Illinois and Sugar Land, Texas where diverse communities abound. http://www.States-RealEstate.com provides essential resources for buyers, sellers, home owners, real estate professionals, real estate investors, or any one seeking to connect with the world of real estate.
Real estate broker deals with all transactions of real estate business. A real estate agent finds sellers for buyers and buyers for the sellers of real estate. Real estate brokers provide every kind of help to sellers as well as buyers. Real estate agent can be a person as well as a firm that helps you in selling/buying real estate.
Real estate broker tells you the current value of real estate. Nowadays broker performs all essential business activities. Real estate broker deals with industrial, residential as well as commercial real estate. Agent can provide help for any kind of real estate. Broker gives suggestions to sellers to increase the cost of assets and also about finest piece of land to the buyers. By appointing real estate agent you can definitely reduce your headaches.
Sometimes real estate agents work without owning any type of real estate brokerage. You should be aware of such things at the appointing a real estate agent. You should check classifieds for the brokers in your local area as well as the area where you want to buy real estate. Verify the reputation of real estate broker/firm.
Call two or more agents for interview and then ask some questions about the firms where they worked for some time, dealing with which type of customers, how long they’re in sell/purchase business and also ask about active number of clients. After getting required information about them select one or two finalists from them. Afterward make a single call to selected real estate agents and select only one who is the best.
Generally real estate agents don’t work as lawyers for the parties but they provide the best services for the sellers as well as buyers. For buyers, real estate agent finds the better real estate as per buyers’ requirements. Ensures buyers about sellers’ reputation. Agent finds buyers for the sellers and tries to maintain a good buyer-seller relationship.
Get your real estate agent as soon as possible!
