welcome to res 110 welcome to res 110 fall 2014 introduction to commercial real estate an on line...
TRANSCRIPT
Patrick MahoneyPatrick MahoneyYour RES 110 Your RES 110
InstructorInstructorBusiness BackgroundBusiness Background
Hippotherapy VolunteerHippotherapy Volunteer Office building Office building
developerdeveloper Commercial property Commercial property
counselorcounselor Commercial property Commercial property
brokerbroker Trustee, NYSE listed Trustee, NYSE listed
REITREIT Realty Company Realty Company
ExecutiveExecutive
General Administrative General Administrative IssuesIssues
Email: [email protected] Identify with RES 110Email: [email protected] Identify with RES 110
Class web Class web sitesitehttp://facweb.northseattle.edu/jmahoney/RES110F14H/ for the Weekly Newsletter, messages , Syllabus for the Weekly Newsletter, messages , Syllabus modifications and Collaborate class discussion modifications and Collaborate class discussion recording link.recording link.
You will be emailing me “attendance Q&A assignments, You will be emailing me “attendance Q&A assignments, class assignments and extra credit assignments. class assignments and extra credit assignments. Please Identify all assignments and extra credit Please Identify all assignments and extra credit projects. :projects. :Student Name & Course Student Name & Course Assignment # or Extra Credit Assignment # or Extra Credit Date turned in. Date turned in.
Students should give Il Professori advance Students should give Il Professori advance notice of any issues which could affect timely notice of any issues which could affect timely performance of student obligationsperformance of student obligations..
Syllabus ReviewSyllabus Review
Syllabus ReviewSyllabus Review
Let Us BeginLet Us Begin
Session OneSession One
Elements of Elements of Commercial Property Commercial Property
- An Overview- An Overview
Defining a Commercial Defining a Commercial PropertyProperty
An Income Producing Real An Income Producing Real Property InvestmentProperty Investment
Leased or Owner Occupied.Leased or Owner Occupied.
Commercial Property Commercial Property Investments Advantages and Investments Advantages and
DisadvantagesDisadvantagesAdvantages:Advantages: Cash FlowCash Flow AppreciationAppreciation Principle Pay DownPrinciple Pay Down Tax BenefitsTax Benefits Opportunities to Self ManageOpportunities to Self Manage Pride of OwnershipPride of Ownership
Disadvantages:Disadvantages: Non LiquidNon Liquid Management IntenseManagement Intense
Buyers and/or Sellers of Buyers and/or Sellers of Investment PropertiesInvestment Properties..
DevelopersDevelopers CorporationsCorporations Institutions (Banks, Insurance Companies)Institutions (Banks, Insurance Companies) Real Estate Investment Trusts (REIT)Real Estate Investment Trusts (REIT) Pension FundsPension Funds Hedge FundsHedge Funds Government AgenciesGovernment Agencies SyndicatorsSyndicators
Typical Life Cycle of Typical Life Cycle of Commercial PropertiesCommercial Properties
DevelopmentDevelopment Stabilized OccupancyStabilized Occupancy Mature InvestmentMature Investment Rehabilitation / RedevelopmentRehabilitation / Redevelopment DemolitionDemolition
Major Commercial Major Commercial Property Types and Property Types and
Resources Available in Resources Available in Each CategoryEach Category
OfficeOffice
Low Rise OfficeLow Rise Office
Fewer than 7 stories*
Mid-Rise OfficeMid-Rise Office
Between 7 and 20 stories +/-
High-Rise OfficeHigh-Rise Office
More than 20 stories
Office ResourcesOffice Resources
BOMA (Building Owners and BOMA (Building Owners and Managers Association) Managers Association) www.boma.org www.boma.org
SIOR (Society of Office and SIOR (Society of Office and Industrial Realtors) Industrial Realtors) www.sior.comwww.sior.com
IndustrialIndustrial
BulkBulk
Simplest of all industrial space.
Office/WarehouseOffice/Warehouse
5% to 25% devoted to office, docks, doors, good access.
Office/ServiceOffice/Service
More expensive, park like setting, about 25% office.
Good access, OH doors, 14’+ clear ceilings.
FreestandingFreestanding
Usually build-to-suit, good access, sizes and storage requirements vary.
Variety of uses.
Multi-TenantMulti-Tenant
Incubator space.
Sizes, uses and storage requirements vary.
Docks and OH doors.
Large ManufacturingLarge Manufacturing
Manufacturing, production, assembly, shipping, etc.
Docks and doors.
Rail and truck access.
Heavy power requirements.
Research and Research and DevelopmentDevelopment
Most people intensive.
Office and manufacturing.
Industrial ParkIndustrial Park
Covenant controlled.
High quality, more expensive.
Higher percentage of office or showroom space.
E Commerce Bulk E Commerce Bulk WarehousesWarehouses
Industrial ResourcesIndustrial Resources
SIOR (Society of Office and SIOR (Society of Office and Industrial Realtors) Industrial Realtors) www.sior.comwww.sior.com
Corenet (Corporate Real Estate Corenet (Corporate Real Estate Network Network www.corenetglobal.orgwww.corenetglobal.org
RetailRetail
Neighborhood CenterNeighborhood Center
Supermarket anchor.
Drug sub-anchor.
Regional CenterRegional Center
General merchandise.
Apparel and services.
Super-Regional CenterSuper-Regional Center
Power CenterPower Center
Multiple anchors.
“Category Killers”.
Outlet CenterOutlet Center
Rural locations.Manufacturers.
Apparel, soft goods.
Freestanding StoreFreestanding Store
Restaurants, banks.
Out-parcel locations.
Drug and specialty retail.
Commercial Strip CenterCommercial Strip Center
Usually un-anchored.
Retail, goods, services.
Restaurants, financial, specialty.
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Lifestyle/Village Lifestyle/Village CentersCenters
Other Retail FacilitiesOther Retail Facilities Big Box Big Box
VillageVillage
Mixed Use/PUDMixed Use/PUD
Neighborhood StoresNeighborhood Stores
DowntownDowntown
AirportAirport
eRetaileRetail
Retail ResourcesRetail Resources
ICSC (International Council of ICSC (International Council of Shopping Centers) www.icsc.orgShopping Centers) www.icsc.org
Dollars and Cents of Shopping Dollars and Cents of Shopping Centers Centers
www.uli.orgwww.uli.org
Multifamily PropertiesMultifamily Properties
Duplexes and FourplexesDuplexes and Fourplexes Often first time investmentsOften first time investments
Larger Apartment ComplexesLarger Apartment Complexes Increasing institutional ownershipIncreasing institutional ownership
Multifamily ResourcesMultifamily Resources
National Apartment Association National Apartment Association (NAA)(NAA)
www.www.naanaahq.org hq.org
Institute of Real Estate Management Institute of Real Estate Management (IREM)(IREM)
www.irem.org www.irem.org
Thanks for Your AttentionThanks for Your Attention