All tagged commercial real estate
For our latest entry in our Expert Insights series, we had the pleasure of sitting down with Joe Killinger, experienced broker and partner at Commercial Brokers International. With over 25 years of experience in both residential and commercial real estate, Joe was directly involved in selling and marketing over 5,900 assets, closing transactions amounting to over $900 million across the United States.
Both cash on cash returns (CoC) and the internal rate of return (IRR) are fundamental concepts for real estate investors. Both are metrics that can prove very useful when you want to evaluate how well your investment is performing, or when you want to compare the profitability of future investments.
So, both are useful, and both are widely used for similar things, but what is the variance between the two? If you are an investor and you believe that you know the difference between CoC and IRR, it would still do you good to read this short text as many investors often make mistakes with the two and when they are supposed to use them.
We have another market update for Santa Monica Commercial Real Estate - Santa Monica retail stores continue to be strong with low cap rates and average prices/sf above $1,150.
Rent growth is at 1.5% with only 15,000 sf of new retail #construction to be delivered in the next 4 quarters.
When working with an office tenant, one of the first questions we ask is, “How much space do you need?” Surprisingly, many times a client isn’t sure, or has unrealistic expectations of their size requirements. In the past, office buildings were built to accommodate approximately 3 or 4 people per 1,000 square feet of rentable space. With rent being one of the highest expenses for a company, many organizations have looked to place more people in the same square footage. Why is this not always feasible? Well there are a few reasons:
I’m often asked “as a first time investor, what should I be doing”? I believe a better question is “as a first time investor, what can I learn from other investors based on the mistakes they’ve made”? Keeping this in mind, I put together a list of the top 10 mistakes first time real estate investors usually make, to help others that are in same boat.
CEO of Commercial Brokers International George Pino, discusses when to start looking for, what to consider, and when to make an offer on Commercial Office Space.