This class will present
a comprehensive survey and examination of the field of
commercial real estate, including commercial leasing,
investment building purchases and sales, and case
studies of commercial transactions; as well as an
examination of the current state of the commercial real
estate market in New York and what we can expect for
coming year and beyond.
We will present a more
in-depth review of commercial real estate in response to
the demand for more material than we have been able to
cover in the popular “Introduction to Commercial Real
Estate” class, currently offered at the NYREI, as well
as for those who just want to learn more about the
interesting and potentially profitable world of
commercial real estate transactions.
Upon completion of this
class, you will receive a Certificate in Commercial Real
Estate from the New York Real Estate Institute.
Course Information:
Among the many topics, this class will include:
Commercial Leasing
Basic types and
terminology of commercial transactions.
Differences between
commercial and residential real estate practices.
Types of commercial
leases
Fair Housing laws and
how they apply in commercial real estate
Leasing vs. Subleasing
– definitions and the advantages and disadvantages of
each
Issues regarding
“location” and client needs
Working with commercial
tenants & identifying their “real” needs
The features of
commercial space – building features - hours of
operation, elevators, availability of water, storage,
traffic, etc.
Discussion of various
tenants with special needs
Classes of Commercial
Buildings – A, B, C & F buildings
How commercial space
is measured, “loss factors” – rentable vs. useable
space.
Additional costs –
“Pass throughs” - electric, taxes & utilities
Commercial rent
escalations & lease renewals
The process of finding
& researching commercial space
Computerized Research
Tools & How to Use Them – Property Shark, OLR, Loopnet &
CoStar, Craigslist, etc.
The anatomy of a
business leasing transaction
Commercial leasing case
studies
Preparing, submitting &
negotiating a commercial offer
Financial information/
Landlord location visits
Commissions &
Getting Paid
The Lehman Scale
Other techniques and
trends in computing commissions
Review of commission
agreements & broker protection
Building Investment
Sales & Purchases
Basic overview of sales & purchases
Types of Investment Properties
Reasons people buy & sell buildings
Flip transaction
The 1031 Exchange
Knowing your buyer & seller – buy & sell vs. hold
Issues in property location & buying strategies
Finding Buildings for Sale
Review of building Set-ups & basic information presented
and weeding through Seller provided information &
set-ups
Viewing & Inspection Issues
Financial Analyses – Measurement of Value & Financial
Performance
Computation of accurate revenues, expenses & net income
Capitalization rates, gross rent multipliers
Debt service coverage, break even ratios, “cash-on cash”
Comparables – neighborhood & building analysis
Mortgage assumability and financial considerations
Distressed properties/Foreclosed properties
A
purchase or sale offering & what it contains
“Due Diligence” and structural issues
Researching & dealing with building violations – DOB &
ECB Violations
NYC building inspections
The broker’s role in closing the transaction
Post-closing Exit Strategies
Case studies & analyses
