The 8 Types of Commercial Real Estate: An Investor’s Guide
The term “commercial real estate” refers to a broad class of real estate assets that are leased to businesses with the intent to earn an investment return through income, price appreciation, or both. The key word in this description is “broad.” There are multiple types and sub-types of commercial real estate, each of which come […]
Should I Invest in Residential Real Estate or Commercial Real Estate?
One of the first decisions that aspiring real estate investors have to make is what asset class to invest in. At the highest level, the options can be broken down into two categories, residential real estate and commercial real estate investing. The risks and benefits of each are the subject of this article. Residential Real […]
Overview of the Commercial Real Estate Transaction Lifecycle
Every commercial real estate transaction is unique. Each transaction has its own quirks, but they all follow the same general process. This process is known as the “transaction lifecycle” and there are five stages: Identification & Origination Underwriting Due Diligence Closing Asset Management and Disposition It is important for investors to understand the key activities […]
What is the Commercial Real Estate Market Outlook for 2022?
As 2022 begins, it seems hard to believe that we are entering the third year of a once in a century pandemic that has impacted nearly every aspect of our daily lives. From a commercial real estate investment perspective, COVID is still the headline story driving the macro trends that we are likely to see […]
Five Commercial Real Estate Trends Shaping the Future of Retail Properties
At First National Realty Partners, we are retail real estate investors. Within this property type, we prefer grocery store anchored retail shopping centers that are complemented by supporting tenants with a heavy experiential/service component. These include companies like boutique gyms, quick service restaurants, medical offices, and beauty salons. These types of assets have performed well […]
Understanding Present Value and Net Present Value
The basic premise of a commercial real estate investment is relatively simple. An investor purchases a property and leases the space in it to other individuals or businesses. Lease income is used to pay the property’s operating expenses and any remaining funds are distributed back to the property owners. Over a multi-year investment period, the […]
What is Force Majeure?
In March of 2020, the World Health Organization (WHO) declared the novel Coronavirus to be a global pandemic. This designation put the entire world on notice that a new and unknown virus was spreading and posed a threat to the health and safety of everyone. As the virus spread, one of the primary tools used […]
Stocks, Bonds, or Commercial Real Estate: Which is the Better Investment?
For a moment, consider the following thought exercise: Assume that an investor has $50,000 in capital that he or she needs to deploy, but this person can only invest in one of the following asset classes: stocks, bonds, or commercial real estate. In order to make such a decision, the investor must consider the relative […]
Real Estate vs. Bonds: Which is a Better Investment?
Each individual investor is unique in the sense that each has his or her own individual return requirements, preferred asset classes, investment objectives (for example, income, capital gains, or both), liquidity needs, risk tolerance, and time horizons. An investor should weigh these individual needs carefully before making an investment choice. Compounding the decision, there is […]