Showing posts with label Transmercial. Show all posts
Showing posts with label Transmercial. Show all posts

Sunday, December 25, 2011

Land: the people who invest in raw land often hope to buy agricultural land near commercially-zoned land at a few thousand dollars per acre. You should consider invest in land if you

If one of your investment objectives is to get high cash flow, you may want to stay away from apartments. Special Purpose Properties: These are properties designed for a specific business, e.g. restaurants, gas stations, and hotels/motels.

The restaurant operators sell the real estate to investors higher cap rate and lease back the property for 20 years.

- Gas stations: when you buy a gas station, you buy both real estate and the gas station business. Office Buildings: these properties are single or multi-story buildings.

- Single-tenant buildings: the properties are used as corporate headquarters of big corporations like Cisco.

- Multi-tenant buildings: these properties are leased by small businesses, e.g. real estate, tax accountants. Investors who purchase these properties want to spread out the investment risks.

- Leases: The leases for office building vary from full service [landlords pay property tax, insurance, maintenance and utilities] to NNN [tenants pay property tax, insurance, maintenance and utilities].

- Medical buildings: these properties are leased primarily by doctors and dentists. Some investors prefer medical buildings as medical tenants are very recession proof.

- Single-tenant building: The advantage is you just have to work with one tenant. The tenants pay a base rent and reimburse the landlord for property taxes, insurance, maintenance and sometimes even property management fees. The NNN lease in a sense is a litmus test on whether the property is in high demand by tenants or not.

- Ground Lease: occasionally a retail center with ground lease is for sale. Once the ground lease expires and the land owner refuses to extend the land lease, you own nothing! New York City is the ideal place for business. Finding great space for your business is a doable undertaking. There are properties that have great street presence for retail and similar business. NYC offers all sizes of commercial space. You can find very affordable and prime commercial real estate both to lease and to buy. Certain property groups can direct you to high value properties in great areas that won't cost as much. You may have a lifelong dream of housing your business in Rockefeller Center or A Trump property.

Thursday, December 22, 2011

Prefabricated Commercial Buildings - The Smarter Selection

Which Types of Commercial Property Should You Invest In? Land: the people who invest in raw land often hope to buy agricultural land near commercially-zoned land at a few thousand dollars per acre. You should consider invest in land if you

If one of your investment objectives is to get high cash flow, you may want to stay away from apartments. In general, apartments are easy to buy and harder to sell. Special Purpose Properties: These are properties designed for a specific business, e.g. restaurants, gas stations, and hotels/motels.

The restaurant operators sell the real estate to investors higher cap rate and lease back the property for 20 years. They in turn use the sale proceeds to expand their business by building more restaurants.

- Gas stations: when you buy a gas station, you buy both real estate and the gas station business. Office Buildings: these properties are single or multi-story buildings.

- Single-tenant buildings: the properties are used as corporate headquarters of big corporations like Cisco.

- Multi-tenant buildings: these properties are leased by small businesses, e.g. real estate, tax accountants. Investors who purchase these properties want to spread out the investment risks.

- Leases: The leases for office building vary from full service [landlords pay property tax, insurance, maintenance and utilities] to NNN [tenants pay property tax, insurance, maintenance and utilities]. The NNN lease is a litmus test on whether the office building is in high demand by tenants or not.

- Medical buildings: these properties are leased primarily by doctors and dentists. Some investors prefer medical buildings as medical tenants are very recession proof.

- Single-tenant building: The advantage is you just have to work with one tenant.

- High Quality Tenants: most of them have good credits, lot of assets and promptly pay the rent when due. The tenants pay a base rent and reimburse the landlord for property taxes, insurance, maintenance and sometimes even property management fees.

- Ground Lease: occasionally a retail center with ground lease is for sale. Once the ground lease expires and the land owner refuses to extend the land lease, you own nothing! Airplane hangers, warehouses, educational facilities, office space, public storage buildings, libraries, hospitals, barns, restaurants, and even outdoor storage sheds are just some of the current types of buildings for which businesses have utilized prefabricated buildings. The interlocking design of prefabricated buildings allows for their relocation to different sites. This results in the construction time of the prefabricated building being in many cases shorter than that of conventional on-site construction. Prefabricated commercial buildings are usually less expensive than conventional structures built on-site.

Friday, December 2, 2011

Service Tax Will Blow Commercial Property Rents By means of the Roof

If you borrow to finance your real estate purchase, inflation is good for you from a real estate investment viewpoint. The same loan you borrow is actually worth 4.2% less compared to a year ago due to inflation.

If you are a landlord of commercial properties then long term leases with fixed rent increases, e.g. 20 years NNN lease with 2% annual rent increase will not be in your favor. The 2% rent increase is less than the inflation so your rent is actually worth less next year.

2008 Inflation - Impact on Commercial Real Estate Investments


The budget proposal of 2007-2008 states that service tax will now be levied on the rent received from the leasing of commercial properties at 12.36%. The imposition of this tax is a step towards broadening the scope of service tax, and imposing extra taxes on real estate. The 12.36% service tax will entail extra operating expenses and squeezing margins, knocking out the retail sector in India.