Commercial Real Estate, or CRE, is a sector of the real estate industry that focuses on properties that have the potential to generate profit. Firms like Perardi Development, focus on commercial projects like multi-tenant medical office buildings and state of the art sports complexes for local and traveling athletes. Like any form of business, learning an industry takes time. In commercial real estate, there’s a lot to learn and go through before you embark on developing your first commercial property. If you’re considering a career in CRE development, you’ll want to know these basics about the industry,
Know Your Properties
In commercial real estate, properties are categorized into a few different types depending on their functionality. One of the first steps on your way to success in commercial property development is knowing the different property types and what they entail.
Each property has its own characteristics that are broken down into different classes or categories. Office buildings, for example, are usually categorized by class (A, B, & C) to further define their level of quality and purpose. In our next blog, we’ll dive deeper into the various property types and their unique qualities.
Conduct a Market Survey & Develop a Plan
Any form of real estate development generally requires a well-thought-out plan before it reaches its potential for success or profit. A great way to start constructing a strategy is by conducting a market survey within the area you’re planning to build. Analyze demographics, market demand, income finances, and the average cost of living for that area. In commercial property development, planning and research are crucial. Once you’ve conducted a market survey, you can move on to constructing a solid development plan. Your plan should focus on various areas such as land and location, surrounding buildings, and properties, and zoning requirements. Ypu should also study the performance and success of past surrounding projects
Budgeting and finances are also a significant component of property development, especially on a commercial scale. Your budget needs to identify the estimated costs of what it would take to develop your property entirely. Things like construction costs, management, advertising, and legal fees are only a few areas that need to be factored into your budget.