Commercial Real Estate - A Primer

Commercial Real Estate ? A Primer

When speaking with a group of real estate investors recently in Philadelphia, the question arose as to how many of them have completed a commercial real estate deal in the last year, and surprisingly, the answer was none. It seems that many of them were either happy with the currently market conditions or they didn?t really have the aptitude to go about buying a commercial property.

Market specialization? No. It seems that the majority of real estate transactions go something like this:

1. Residential real estate is the sweet spot of the small real estate investor.

2. Commercial real estate is typically left for the small business owner, who has decided to stop renting.

3. Both of these sectors of the real estate industry do have some crossover, but the previous two statements are typically the norm.

So how exactly are commercial properties being bought, sold, being rented? What?s the best way to acquire commercial real estate, and who you need to help you in doing an acquisition?

Here are five key points to consider:

1. By far the most popular business entity for owning commercial real estate is now the limited liability company (LLC).

2. Commercial real estate is a much less popular subject, in part, because it isn't as personal and doesn't tug at our own financial purse strings.

3. Commercial real estate is a term to describe a property with 5 or more units. Commercial Real Estate is a critical component of any well-run business.

4. Investing in commercial real estate is riskier and more costly than investing in residential property - but ultimately it can be far more profitable.

5. Commercial real estate is a business investment driven by economic factors, not so much the property itself.

Investing in commercial real estate can be a good way to invest but you should make sure you are well represented by an attorney and accountant before moving forward since buying commercial real estate can have significant tax consequences and if you're buying or developing commercial real estate, it's important to protect your financial interests with legal support. It may sound redundant, but the axiom location, location, location, is an important factor in buying commercial real estate too. Here is the key to buying commercial real estate: the one with the most information wins.

The winners are the people that recognize that the world of commercial real estate is constantly changing and understanding the nature of commercial real estate is a precondition to the timing question. They also understand the data and realize that information is the most critical aspect of any transaction. In other words, the most valuable commodity you can have in the commercial real estate market is information.

Posted by Gregg Buck on December 13, 2008 at 12:00 AM

About Gregg Buck
Gregg Buck is affliated with Century 21 AltusPrestige Realty, Inc., which is located in Altus, OK. For further assistance please use the contact information located on the right.

As of 05/24/12 the Gregg Buck RePage is ranked at 3,882 with 415 points.

Local Information for Altus, OK

Latitude: 34.643754 -- Longitude: -99.326603

ZIP Codes for Altus, Oklahoma	73521 73522 73523
Area Code for Altus, Oklahoma	580
Time zone for Altus, Oklahoma	CST

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censusGR2 of 2000, there were 21,447 people, 7,896 households, and 5,629 families residing in the city. The population density was 492.0/km² (1,274.1/mi²). There were 9,264 housing units at an average density of 212.5/km² (550.4/mi²). The racial makeup of the city was 72.62% White, 10.41% African American, 1.48% Native American, 1.38% Asian, 0.20% Pacific Islander, 10.32% from other races, and 3.59% from two or more races. Hispanic or Latino of any race were 17.25% of the population. There were 7,896 households out of which 38.9% had children under the age of 18 living with them, 55.6% were married couples living together, 11.7% had a female householder with no husband present, and 28.7% were non-families. 25.1% of all households were made up of individuals and 9.5% had someone living alone who was 65 years of age or older. The average household size was 2.62 and the average family size was 3.14. -- Source: Wikipedia.com

Oklahoma 2000 Census Population Profile Map

	Altus	Oklahoma	United States
Population	21,447	3,450,654	281,421,906
Median age	31.6	35.5	35.3
Median age for Male	29.9	33.9	34
Median age for Female	33.4	36.9	36.5
Households	7,896	1,342,293	105,480,101
Household population	20,677	3,338,279	273,643,273
Average household size	2.62	2.49	2.59
Families	5,627	921,750	71,787,347
Average family size	3.14	3.02	3.14
Housing units	9,264	1,514,400	115,904,641
Occupied units	7,896	1,342,293	105,480,101
Vacant units	1,368	172,107	10,424,540

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Commercial Real Estate - A Primer

Local Information for Altus, OK

Latitude: 34.643754 -- Longitude: -99.326603

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