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 Norma Harris on December 13, 2008 at 12:00 AM

About Norma Harris
Norma Harris is affliated with Harris Realty Co., which is located in Oklahoma City, OK. For further assistance please use the contact information located on the right.

As of 05/24/12 the Norma Harris RePage is ranked at 3,395 with 425 points.

Local Information for Oklahoma City, OK

Latitude: 35.482309 -- Longitude: -97.534994

ZIP Codes for Oklahoma City, Oklahoma	73101 73102 73103 73104 73105 73106 73107 73108 73109 73110 73111 73112 73113 73114 73115 73116 73117 73118 73119 73120 73121 73122 73123 73124 73125 73126 73127 73128 73129 73130 73131 73132 73134 73135 73136 73137 73139 73140 73141 73142 73143 73144 73145 73146 73147 73148 73149 73150 73151 73152 73153 73154 73155 73156 73157 73159 73160 73162 73163 73164 73165 73167 73169 73170 73172 73173 73178 73179 73184 73185 73189 73190 73193 73194 73195 73196 73197 73198 73199
Area Code for Oklahoma City, Oklahoma	405
Time zone for Oklahoma City, Oklahoma	CST

Other Area Cities: Oklahoma City, OK Norman, OK Choctaw, OK Bethany, OK Del City, OK Edmond, OK Midwest City, OK Moore, OK The Village, OK Warr Acres, OK

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Oklahoma City is the capital and the largest city of the U.S. state of Oklahoma. It is also the county seat of Oklahoma County, Oklahoma. Oklahoma City was founded during the Land Run of 1889, first of five land runs in what became Oklahoma.By the time Oklahoma was admitted to the Union in 1907, Oklahoma City had already supplanted Guthrie, the territorial capital, as the population center and commercial hub of the new state. Soon after, the capital was moved from Guthrie to Oklahoma City.Oklahoma City Public Schools is the state's largest district and is one of the few urban districts in the nation with a growing enrollment, due largely to the so-called 'MAPS for KIDs' city-wide improvement plan. The Oklahoma School of Science and Mathematics in Oklahoma City is home to the state's most gifted math and science pupils.Besides the skyscrapers that cluster in the city's central business district, one of the more prominent landmarks downtown is the Crystal Bridge. -- Source: Wikipedia.com

Oklahoma 2000 Census Population Profile Map

	Oklahoma City	Oklahoma	United States
Population	506,132	3,450,654	281,421,906
Median age	34	35.5	35.3
Median age for Male	32.7	33.9	34
Median age for Female	35.3	36.9	36.5
Households	204,434	1,342,293	105,480,101
Household population	492,999	3,338,279	273,643,273
Average household size	2.41	2.49	2.59
Families	129,360	921,750	71,787,347
Average family size	3.04	3.02	3.14
Housing units	228,149	1,514,400	115,904,641
Occupied units	204,434	1,342,293	105,480,101
Vacant units	23,715	172,107	10,424,540

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Commercial Real Estate - A Primer

Local Information for Oklahoma City, OK

Latitude: 35.482309 -- Longitude: -97.534994

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