Commercial Real Estate
Looking for the Upside
Commercial real estate is among the most complicated fields because of the diversity of knowledge and information necessary to properly serve clients. A person working in commercial real estate must truly be conversant in legal matters, statistical interpretation, as well as market-driven mathematics. It's a good thing you're working with Maloof Properties! We offer full-service real estate support with brokers and attorneys, giving you a 1-stop-shop. Review the introduction into Commercial Real Estate below then give us a call to answer any questions and provide you with our well-rounded expert support.
Commercial real estate takes many forms, and each presents its own spin on how a deal would be struck. Below we introduce you to the main categories:
Multifamily Residential Investments
Multifamily transactions demand that all parties be sophisticated in regard to residential landlord-tenant matters, construction quality and standards, demographics, estoppel matters, and a variety of other facets that govern residential real estate landlords. Multifamily transactions hinge upon vacancy factors as well as the availability of cash flow to finance the anticipated debt service. Many swear by this type of investment, but those who engage in the commercial investments listed below rarely venture into multifamily.
The Strip Mall Approach
With retail, the viability of the businesses being run out of the facility makes all the difference. Unlike multifamily, investing in retail (commonly “strip malls”) is more business-like, and less likely to get personal among and between the parties. Retail investments often require capital to make improvements that benefit new tenants.
Warehouse and Manufacturing Facilities
Industrial properties include warehouse space and manufacturing facilities. Often more passive than retail investments, a key landlord concern is the presence of environmental threats caused by the tenant activities.
Potentially more stable than either retail or industrial investments, office space is usually constructed to a building standard, which a tenant agrees to abide by upon entry into a lease. Office landlords are also susceptible to having to do tenant improvements.
Time to Build?
Most speculative are development opportunities. Here, raw land is acquired to convert to one of the above uses, or a property of one type is acquired to either renovate and improve or demolish and replace. The vision may never come true, but the upside is significant.