Downtown office buildings have long been the cornerstone of a solid, risk-adjusted real estate portfolio. Find out everything you need to know about how to invest in these kinds of buildings from one of America’s leading office innovators, Feldman Equities.
A good investment portfolio includes a range of different assets including stocks, bonds, and alternatives like real estate, and an even better one includes a diverse selection of real estate that includes an allocation to office buildings.
A good investment portfolio includes a range of different assets including stocks, bonds, and alternatives like real estate, and an even better one includes a diverse selection of real estate that includes an allocation to office buildings.
For decades, office building ownership has been one of the major categories of investment in the real estate industry. It offers exceptional rewards to those looking for outsized returns with mitigated downside, but office buildings have historically been the domain of the wealthiest elite in America. Thankfully, regulations have changed, permitting any accredited investor to benefit from this lucrative industry niche.
How do you make sure you turn a profit with an office building property? There are no guarantees in real estate investment, but some developers have found more consistent success than others. Larry Feldman of Feldman Equities has a laser-sharp focus on office buildings, and he’s managed to keep a stable, profitable business going for 35 years, throughout multiple recessions and market downturns.
The commercial real estate industry uses a lot of lingo. This can seem daunting for first-time investors looking to make sense of different property types.
Commercial Real Estate refers to real estate that is leased out to one or more tenants. It refers to the business of owning and leasing real estate, which may consist of office buildings, shopping centers, industrial buildings, etc.
It’s tough enough being a commercial real estate investor without knowing all of the jargon and industry language you need to learn quickly.
For decades, office building ownership has been one of the major categories of investment in the real estate industry. It offers exceptional rewards to those looking for outsized returns with mitigated downside, but office buildings have historically been the domain of the wealthiest elite in America. Thankfully, regulations have changed, permitting any accredited investor to benefit from this lucrative industry niche.
How do you make sure you turn a profit with an office building property? There are no guarantees in real estate investment, but some developers have found more consistent success than others. Larry Feldman of Feldman Equities has a laser-sharp focus on office buildings, and he’s managed to keep a stable, profitable business going for 35 years, throughout multiple recessions and market downturns.
The commercial real estate industry uses a lot of lingo. This can seem daunting for first-time investors looking to make sense of different property types.
Commercial Real Estate refers to real estate that is leased out to one or more tenants. It refers to the business of owning and leasing real estate, which may consist of office buildings, shopping centers, industrial buildings, etc.
It’s tough enough being a commercial real estate investor without knowing all of the jargon and industry language you need to learn quickly.
As more investors look to add commercial real estate to their portfolios, demand for commercial property has risen to new heights. Many prospective investors will look at dozens, even hundreds, of properties before making an offer to purchase. Before they do so, however, most will submit what’s known as a “letter of intent” – or LOI – as a precursor to a more formal, binding agreement with the seller or landlord.
As more investors look to add commercial real estate to their portfolios, demand for commercial property has risen to new heights. Many prospective investors will look at dozens, even hundreds, of properties before making an offer to purchase. Before they do so, however, most will submit what’s known as a “letter of intent” – or LOI – as a precursor to a more formal, binding agreement with the seller or landlord.
Most urban residents know that there are literally thousands of commercial buildings in a metropolis, but perhaps beyond an occasional interaction a building superintendent or landlord, give little thought to the matter of who operates a structure.
War-clouds over Russia, soaring oil prices, domestic inflation—all that is needed is a disco beat to bring back the 1970s to America.
Here are the steps you need to know when investing in commercial real estate and some tips to get you started.
Cap rates can be an incredibly valuable tool for investors looking to establish a property’s value. The cap rate, expressed as a percentage, is calculated by dividing the property’s net operating income by its purchase price. The resulting percentage generally ranges anywhere from 3 percent to 15 percent or more.
Are you curious about what role bridge loans play in the world of commercial real estate? Take a look at what you need to know.
Experienced commercial real estate investors and tenants always use a LOI when entering into a potential transaction or buy, sell, or lease office space. Although LOIs are frequently used to buy or lease commercial real estate, parties sometimes make critical mistakes that could easily be avoided.
When you look for office space to lease, two of the most common leases you will find are FSG and NNN. But what do those terms really mean, and is one option better than the other?
Off-market real estate properties can be the perfect opportunity for commercial real estate investors on the lookout for great deals on office buildings.
People who have been in the commercial real estate business for any length of time have heard of an Offering Memorandum (OM). While marketing flyers and brochures are publicly distributed to the general investment community, a good commercial real estate OM is used to generate interest from the most qualified prospective investors and bring them to the deal table.
In this article, we’ll look at the positive impact that inbound migration and other key factors are having on the local economies and commercial real estate markets in Florida.
The pandemic is likely to have a lasting effect on the office market.
It’s possible that working from home may become the new normal for some businesses. However, many office users are learning that virtual meetings simply don’t provide the same opportunities to collaborate, nurture creativity, and attract the skilled employees businesses need to succeed.
Although many office markets in the U.S. have felt the bite of the pandemic, others are doing relatively well. For the country as a whole, asking rents for office space and rent growth are on the rise, despite increasing vacancy rates and negative net absorption.
Prior to Covid-19, companies were looking at ways to fit more people into less office space. Adding more seats, increasing the number of smaller desks in an office, and unassigned workspaces were just a few of the methods used.
It appears that Joe Biden will be the next President of the United States, raising questions about the implications for commercial real estate.
The Covid-19 pandemic has forced governments around the world to close down their local economies. As a result, lower consumer spending and decreased business operations are creating unique challenges for office building owners and operators.
A recent article from CNN, “The Office, As You Know It, Is Dead”, suggests that working from home may not be a short-term phenomenon, but instead a permanent shift to remote working even after a vaccine is found for Covid-19.
When investing in an income-producing asset, it’s important to know how much money you will make as well as when you will receive it.
Investing in commercial real estate is an excellent way to diversify the portfolio and earn passive income. However, it’s important for investors to understand the numbers behind the deal, so let’s dive into underwriting and see what it’s all about.
Anyone interested in investing in real estate development should understand the actual costs of a project. In this article, we will examine the difference between hard costs and soft costs.
Commercial real estate questions? Here are some important things to know.
When contemplating an investment, one of the most important questions to ask is “what is my time horizon?” Here are some insights on understanding your time horizon in commercial real estate
Are you interested in getting your hands on commercial real estate? Here is the ultimate checklist to help you get started.
When it comes to capital stack in real estate, there are four main components. Here’s what you need to know to build portfolio profits.
Any investor will tell you: the higher the risk, the higher the reward! Yet, when crafting their own investment portfolios, most will look to create some sort of balance between risk and reward.
Commercial leases, unlike residential leases which are generally standardized, come in many different forms.
The state of Florida and Tampa has one overriding major industry that is senior to all other industries. I call it the “population growth industry” 😊.
Short term leases have a notoriously bad reputation in commercial real estate. The conventional wisdom says that short term commercial real estate leases are not a good idea.
Commercial real estate transactions can be daunting for new and experienced investors alike. They are often complex, can take months or even years to complete. The commercial real estate bid process itself may be fraught with peril, and missteps can end up costing stakeholders substantial amounts of time and money.
Commercial leases (as opposed to apartment leases) use different methods for how the rent is calculated. The tenant’s chosen field or business oftentimes determines which is the best commercial lease calculation to use for that specific use. Let’s get into it in a bit more detail.
When my wife had our first child, it was a difficult pregnancy and my wife swore that we would never have another child. With the joy that our first child brought us, my wife had a change of heart and we decided to have another baby.
Feldman Equities owns and operates large-scale high-rise office buildings located on the West coast of Florida. For Feldman, a renovation which results in a B+ isn’t good enough.
Many people are told that investing in commercial real estate is a great way to get ahead in life. And while that can be true, investing without direction can have the opposite effect.
Commercial real estate is generally considered one of the best ways for individuals to grow their net worth. That doesn’t mean commercial real estate investing is foolproof. One of the ways that some investors get tripped up is that they fail to do their due diligence before investing their hard-earned dollars.
Commercial Real Estate (CRE) investment provides savvy investors a wealth of advantages. Tax benefits, cash flow, and leverage among them.
The 2008 recession seemed like Armageddon for many real estate investors. Those who were new to the game (and made rash decisions as a result) may have been surprised to learn that the recession of the late 1980s and early 1990s was worse.
A boom market makes real estate investing look easy. Investors chasing fast yields flood the market, bidding properties up to the point where the yield isn’t there.
Investors looking to diversify their portfolio often consider investing in commercial real estate. Some will start by buying small multifamily properties, two or four units at a time. When the time comes to buy more substantial commercial real estate properties, such as an office building, most investors aren’t sure where to begin.
Commercial real estate is on a substantial uptick right now. With interest rates at all-time lows, employment at all-time highs, the economy booming, and occupancies high, it’s hard not to remain confident that for the foreseeable future, commercial real estate is going to remain on an upward trajectory.
Walk through any major city whose skyline is dotted with skyscrapers.
Look up.
At first glance, it might seem that these office towers are out of the reach of average investors. These properties are generally reserved for only the highest caliber investors, or those known as “institutional” investors.
Although it might be very “sexy” to land a giant corporate tenant, this could be a terrible mistake for the landlord. Many office building landlord’s will go to great lengths to land a major corporate tenant to lease up all or the majority of their property. On the surface, this may seem like a great idea.
Real estate investors often look at the highest IRR when comparing one investment to another. But, in commercial real estate, such criteria is potentially short-sighted. Instead, investors should be evaluating commercial real estate opportunities by looking at their risk-adjusted returns – not just the overall IRR.
Real estate professionals tend to be old-school. A room full of investors, brokers, and mortgage lenders may resemble an episode of Mad Men more so than an episode of Silicon Valley, complete with the bourbon and the blue blazers. Real estate, they say, is a business of relationships—a series of handshakes, meetings, and phone calls, learning who can play ball and who can’t over luncheons, mixers, tee times, and kids’ graduation parties. That’s how deals get done.
Most real estate investors understand the value of a good property manager as a key member of their team.
Do-it-yourself (“DIY”) property management is way too time-intensive for serious investors. That time is better spent finding more deals. Even if you make a little less money each month by paying some of your gross income to a property manager, you could end up purchasing five, ten, or twenty properties with a fraction of the effort.
Success may look like it comes out of nowhere, but more often there is a long history that built up slowly over time. Our business today is no exception to that rule.
Early in the current economic cycle, the large metro areas like Boston and Washington, D.C. were the fastest growing regions for commercial real estate. They tended to recover faster than other parts of the country, and as a result, saw major construction projects driven by strong economic growth.
You might chuckle at a three-page sublease clause in a commercial lease, thinking that some lawyers are putting their kids through college billing with this wasted verbiage. The reality is that owners of commercial real estate do need to properly restrict sublease rights to protect their profit, income streams, and property value. It’s important that landlords don’t allow high-profile tenants to weaken these crucial sublease clauses that protect their interests.
Long-term leases are generally the preference in office building ownership. Indeed, companies like Feldman Equities are even willing to undercut competitors in order to secure a long-term lease from a strong tenant.
It’s not uncommon for investors to think of large office buildings with dozens of tenants as being broadly diversified, risk mitigated investments. Like an apartment building, it is often assumed that by having a good mix of many tenants without overdependence on just a few, a building can be operated with relative impunity because if one tenant moves out, the impact will be minimal.
Cap rates are not an all-encompassing measure of the true value of commercial real estate. It’s common to lean very heavily on cap rates as an indication of value, but it’s only a broad measure that doesn’t take into account the specific circumstances of the building, its tenant mix, length of lease terms, the in-place rents versus the market rents, and the supply demand factors in the local market.
How long should you hold onto your real estate before selling? While the final decision is up to you personally and your investment strategy, many industry veterans recommend longer holding periods. Larry Feldman has been in the office building development industry for more than 35 years; his family for over 100 years. His long-term hold strategy has helped him weather multiple downturns over the decades while continuing to grow his portfolio of buildings first in New York, and now in Tampa.
Marketing plays a huge role in the business of owning and operating office buildings. Our unique approach to marketing office buildings has worked for us here at Feldman Equities for over 30+ years.
Most urban residents know that there are literally thousands of commercial buildings in a metropolis, but perhaps beyond an occasional interaction a building superintendent or landlord, give little thought to the matter of who operates a structure.
War-clouds over Russia, soaring oil prices, domestic inflation—all that is needed is a disco beat to bring back the 1970s to America.
Here are the steps you need to know when investing in commercial real estate and some tips to get you started.
Cap rates can be an incredibly valuable tool for investors looking to establish a property’s value. The cap rate, expressed as a percentage, is calculated by dividing the property’s net operating income by its purchase price. The resulting percentage generally ranges anywhere from 3 percent to 15 percent or more.
Are you curious about what role bridge loans play in the world of commercial real estate? Take a look at what you need to know.
Experienced commercial real estate investors and tenants always use a LOI when entering into a potential transaction or buy, sell, or lease office space. Although LOIs are frequently used to buy or lease commercial real estate, parties sometimes make critical mistakes that could easily be avoided.
When you look for office space to lease, two of the most common leases you will find are FSG and NNN. But what do those terms really mean, and is one option better than the other?
Off-market real estate properties can be the perfect opportunity for commercial real estate investors on the lookout for great deals on office buildings.
People who have been in the commercial real estate business for any length of time have heard of an Offering Memorandum (OM). While marketing flyers and brochures are publicly distributed to the general investment community, a good commercial real estate OM is used to generate interest from the most qualified prospective investors and bring them to the deal table.
In this article, we’ll look at the positive impact that inbound migration and other key factors are having on the local economies and commercial real estate markets in Florida.
The pandemic is likely to have a lasting effect on the office market.
It’s possible that working from home may become the new normal for some businesses. However, many office users are learning that virtual meetings simply don’t provide the same opportunities to collaborate, nurture creativity, and attract the skilled employees businesses need to succeed.
Although many office markets in the U.S. have felt the bite of the pandemic, others are doing relatively well. For the country as a whole, asking rents for office space and rent growth are on the rise, despite increasing vacancy rates and negative net absorption.
Prior to Covid-19, companies were looking at ways to fit more people into less office space. Adding more seats, increasing the number of smaller desks in an office, and unassigned workspaces were just a few of the methods used.
It appears that Joe Biden will be the next President of the United States, raising questions about the implications for commercial real estate.
The Covid-19 pandemic has forced governments around the world to close down their local economies. As a result, lower consumer spending and decreased business operations are creating unique challenges for office building owners and operators.
