FOUR THINGS TO KNOW BEFORE MAKING THE SWITCH FROM RESIDENTIAL REAL ESTATE TO COMMERCIAL REAL ESTATE

The Mentality of Residential vs. Commercial The first thing to remember is that residential and commercial real estate (CRE) are completely different. It's all about business in the world of commercial real estate. In most cases, you're assisting a client with a commercial transaction, such as a building sale or lease. When it comes to residential real estate, whether you're attempting to assist a client purchase, sell, or rent a home or apartment, you're dealing with emotions and tight budgets, which can be draining for some brokers. Commercial real estate may be a better fit for you if you enjoy creating relationships, working with figures, and prefer to work with building owners, managers, and investors on larger transactions. The Importance of NetworkingIn commercial real estate, as in any other field, who you know is crucial. While you may already have a great list of residential leads, you'll probably need to reach out to your contacts to see if they have any commercial clients that want to buy, sell, or lease. This entails putting in the effort and attempting to build relationships in any manner possible, including utilizing any affiliations such as BOMA International and REBNY, as well as tapping into your firm's resources for potential leads. Planning for the Switch and Gearing UpKeep in mind that you'll need to devote time to studying the business, and you'll most likely be paid on commission. It's a smart idea for many people who change careers to build up a small financial nest egg before making the switch, and the same is true for CRE. Learning about industrial and commercial neighborhoods, as well as the many building kinds — retail, medical, office, industrial, and land — takes time. Each provides brokers with unique sales and leasing options. A broker must be informed about each building type and be able to discuss and deliver on the amenities that a customer may demand in order to be successful. Brokers must also be familiar with business clients and investors, as well as the zoning, tax, and finance issues that affect commercial transactions. It's also a good idea to become certified as a commercial real estate expert to boost your credibility and competence. While technology has its advantages, traditional shoe-leather-to-the-ground canvassing—a.k.a. The key to success is going out there, talking to people, and seeing as many properties as possible.   Commercial Real Estate Can Be More Lucrative If You Have the Right Character for ItCRE has the potential for substantially bigger commissions than most residential properties, whether it's a factory, office building, or retail space because sales and rents are often much higher than those of an apartment or condominium. While CRE has a lot of advantages and can be a good career choice (especially if you already have a track record in residential real estate), bear in mind that it's not always as simple as it appears. Though coming from residential real estate will make it much simpler to achieve than coming from another business cold turkey. In both circumstances, you'll have to learn a completely new aspect of the business while also changing your perspective and mindset.  

WHY COMMERCIAL ESTATE? REASONS TO INVEST

Real estate can be purchased in a number of ways. You may flip houses, rent out properties, invest in real estate-related stocks, REITs, and ETFs, and even participate in crowdfunded real estate ventures.What is commercial real estate?To begin, what precisely is commercial real estate? It is, at its most basic level, any property that is intended to generate income. It can comprise everything from retail stores to office buildings to industrial warehouses to restaurants, as well as more specialized properties like storage units, hotels, casinos, and even healthcare services.Why invest in commercial real estate?Whether you've worked in residential real estate for a long time or have never invested in real estate before, Commercial Real Estate can be a good place to put your money. But what's the point of investing in commercial property? Here are 11 reasons why you should think about including it in your real estate portfolio.1.  High-income potentialThe potential of commercial real estate is the most tempting reason to invest. Commercial buildings have higher rentals and prices, as well as a higher potential for profit. If you choose the correct properties, instead of making a few hundred dollars a month on a rental home, you could make thousands, tens of thousands, or even more.2.  Tax BenefitsThere are also tax advantages to investing in commercial real estate. First, there's depreciation, which lets you deduct a percentage of the value of your property from your taxed income each year. For many investors, this dramatically reduces their total tax burden.3.  Less CompetitionResidential real estate is extremely competitive, particularly right now, which has pushed prices upward for quite some time. The trend in commercial real estate, on the other hand, is the polar opposite. In the third quarter of 2020, the dollar volume of commercial real estate in the United States was 57 percent lower than the previous year. As a result, finding a business property should be easier right now — especially when compared to other assets on the market.4.  Plenty of Investment OpportunitiesCommercial real estate investment options are diverse: you can invest in a full-scale mall or a high-rise office building, or you can keep it simple by investing in a single storage facility, an industrial warehouse, or a single condominium community. You have a lot of options when it comes to what you can invest in and where you can do it.5.  Less turnoverYou work in residential real estate, this will most likely excite you. Commercial real estate, unlike apartments and single-family rentals, does not usually have one-year lease agreements. Instead, the majority of tenants sign three-year leases. This lowers turnover (and the inconvenience and cost that comes with it) while also ensuring a steady income flow for your company.6.  More help maintaining (and improving) your propertyMaintenance, upkeep, and improvements aren't always your responsibility with commercial buildings. For one thing, many companies use triple net leases. The tenants are responsible for the majority of property-related costs, such as taxes, insurance, upkeep, and even utilities.7.  Fewer problematic tenantsSince you're dealing with business owners, who have a reputation to uphold and money on the line, they're usually more cautious when it comes to working with landlords and obeying the rules. This saves the investor/property owner a lot of time and effort.8.  More off-hoursCommercial Real Estate requires a significant amount of effort. However, how many hours do you spend getting calls from tenants or going up to the property? They have far fewer options than in the residential environment.The majority of your renters in the commercial sector work a traditional 9-to-5 schedule. It usually entails extra "time off," or the ability to be away from your phone and not on call for long periods of time during the day.9.  A more diverse portfolioCommercial Real Estate might be a good method to diversify your portfolio if you're already heavily involved in residential real estate. As the year 2020 shows, you never know what will happen in the economy or in the world. As a result, diversifying your investments across multiple assets is one of the best long-term investments you can make.10.  Good deals may be on the horizonAlthough COVID-19 did not provide much good news to the world, there may be a silver lining for future Commercial Real Estate investors. Interest in various commercial real estate sectors dropped in 2020 as a result of greater work-from-home arrangements and the overall economic downturn.Commercial Real Estate values have fallen slightly as a result of the downturn, at least in some areas. According to the RCA CPPI: U.S. summary report from October 2020, commercial real estate prices in the United States increased at a 1.4 percent annual rate from September 2019 to 2020, a significant decrease from the mid-single-digit growth rate seen in 2018 and 2019. While prices for residential and industrial buildings increased year over year (by 6.7 percent and 7.4 percent, respectively), prices for retail and office premises decreased (5.3 percent and 1.5%). Prices in weaker sectors could fall much lower depending on how long the pandemic continues.11.  It is provenFinally, commercial real estate is a tried-and-true investment. Consider billionaires such as Warren Buffett, Stephen Ross, Donald Bren, and, of course, Donald Trump. Commercial real estate has made and continues to make fortunes for a slew of ultra-wealthy investors.

Construction Begins on $128 Million Sports Arena in Georgia

  Welcome to commercial real estate like a girl, where we get the woman’s perspective on commercial real estateCome on beauty it’s time to beastI’m Danesha and today we’re talking about the new sports arena in Georgia and Land DevelopmentConstruction is underway on a $128 million sports coliseum in Athens, Georgia,the latest in a string of new arena developments nationwide.According to www.costar.com Classic City Arena, located in downtown Athens, will have 5,500 permanent seats and 3,000 temporary seats according to a statement. It will host a minor league ice hockey team, a college hockey team, and national concert tours.Local officials say the facility won’t compete with or replace the University of Georgia’s 10,500-seat Stegeman Coliseum, an on-campus arena that serves as the home of the school’s basketball and gymnastics teams.Athens is located about 70 miles east of Atlanta. New arenas are popping up nationwide as local governments look to bolster economic development. New or renovated facilities have recently opened in Austin, Texas; Long Island, New York; and Seattle. MSG Sphere at the Venetian, a 17,500-seat venue near the Las Vegas Strip, is scheduled to open next year. A separate $3 billion project in Las Vegas could include two new arenas. The new Athens arena, located at 775 E. Broad St. next to the existing Classic Center convention facility, will be financed with $33 million in local-option sales tax revenue, $75 million from revenue bonds, and $20 million from unnamed private investors.The consolidated government of Athens and Clarke County, Georgia, will own and operate the facility, scheduled for completion in November 2023. Oak View Group, based in Los Angeles, is the lead developer. JE Dunn is the general contractor. Perkins & Will and Smallwood are project architects.The word of the day is:Land DevelopmentAs people are attracted to an area, the land becomes more useful and, thus, more valuable. An influx of people may result from manufacturing growth, extraction of natural resources, a recreational area, or a favorable location for commerce.Whatever the cause, the direct result of more people is a demand for more buildings— to live in, to play in, to work in, and to use for storage. (There goes that storage thing again)Land in a growing area increases in value because of its location, which, in turn, dictates its use. These uses develop into zoning laws, though one major city—Houston—exists without zoning. (The craziest thing ever) Its development is a function of economic agglomeration, with warehousing, port facilities, shopping (as with the Galleria area in Houston)all deriving from the original attractiveness for a specific use of the land in a specific area of town, independent of zoning laws.To me, things look better when they’re organized but hey who am I right? If it works for then rock on!Check out my podcast on this topic