Q2 4.1, 4.4 (+) 58.3% Flashcards
(74 cards)
Determine research needs and desired outcomes (0.8)
Preliminary Research for meeting with landlord
* -reviewing personal database for information and prospects, clietn info.
* reviewing the brokerage’s database for information.
* becoming familiar with property location.
-Discovery Session- Walk through tour with Landlord. Gather documentation.
Become Familiar with the area
Getting familiar with the area-
1. -overall physical condition of neighbouring properties
2. Names and industries of other business in neighbouring properties
3. Addresses and details of neighbouring properties advertising space for lease.
4. Addresses and details of neighbouring properties advertised for sale
5. Local amenities close to the property
6. Transportation options and access
7. Demographic trends in neighbouring communities
8. Traffic counts for roadways adjacent to the property
Identify Competitive properties.
the combination of location, attributes, and capital outlay required by a prospective tenant will determine which properties are direct substitutes for the landlord’s property.
In most cases, competitive properties are in the same geographic area and can be delineated on a map.
Once you have identified a competitive property, contact the rep for following information:
- rental rates
- operating costs
- tenant incentives offered
- building and area amenities
- vacancy rates
- conducting a general market assessment.
**Get regular email updates from brokerage sites to keep an eye on which properties might be competing.
MACROECONOMICS
Macroeconomics studies the behaviour and performance of large-scale or general economic factors:
unemployment rate,
growth rate,
gross domestic product (GDP),
inflation.
Example trend for office workers to work from home.
MICROECONOMICS
Microeconomics studies the behaviour and performance of individuals and companies
An important microeconomic factor to a leasing transaction is the business strategy of the landlord.
For example, some landlords look for long term tenants with strong financial covenants to supply stable, steady income.
Others may be willing to take on higher risk with shorter lease terms to potentially earn higher rental rates in the future when market conditions may become more favourable to the landlord.
A market analysis also involves investigating and evaluating:
- New supply coming to the market
- The absorption rate
- Rental and vacancy rates
- Recent transactions
Permitted Uses
Land uses identified as being appropriate for that district and compatible with each other and any discretionary uses allowed for the district.
Dividing a municipality into districts and providing for permitted and discretionary uses in each district stems from three main principles:
- Locating similar uses together is more efficient as they will have similar servicing standards and common design needs.
- Some uses pose considerable risk to health and safety. Districting establishes effective distances and allows conditions to be attached to permits to reduce the risk.
- It allows appropriate aesthetic standards for each district to be established, such as the height of buildings, distance between buildings, and size of lots.
Discretionary use
not necessarily compatible with surrounding uses.
Land Use bylaw
Up to municpality. The Land Use Bylaw divides the municipality into land use districts, which are further divided into subcategories according to the different uses.
For each district and subcategory, the Bylaw lists permitted uses and, if applicable, discretionary uses.
To verify the land use classification for the landlord’s property, check the municipality’s website for land use districts, property assessment information, or property tax rolls using the municipal address or legal description.
Once the land use classification of a property is obtained, the Land Use Bylaw can be consulted to determine the permitted or, where applicable, discretionary, uses under that classification.
Determine essential areas of expertise (.08)
Prospective clients are interested in trends, key developments, and relevant topics of interest.
Maintain a strategy of regular contact within the market, not only for obtaining listings, but also for referrals and repeat business.
The depth of knowledge gained is invaluable when preparing marketing proposals.
Describe Attributes that make commercial real estate unique (understand) (1.0)
- -highly regulated
- -management intensive
- -long lasting durable goods,
- -expensive
- -long production cycle (slow to respond to changes in demand)
- very unique
- -always involve land
- -high transaction costs
Occupancy Permit
Phase3- construction completed, certificate of occupancy granted, asset generates income, asset and property management commences, sale or repositioning may occure.
Describe the purpose of office properties (06)
- growth in the labour force (workers requiring office employment.)
- accessibility and proximity to attractive housing, shopping, and other amenities.
- generate municipal tax revenues and expand employment opportunities.
- They also provide effective buffers between retail, residential, and industrial areas
Community center
have two anchor tenants which could include a discount or department store.
Lifestyle center-
retail experience in an open air village like shopping for upscale consumers
Describe the purpose of retail properties (08)
- businesses that offer goods or services to the public over the counter, without a prior appointment, in exchange for payment
- latest trends include lifestyle centres
-retailers shifted toward distribution and warehousing centre
define mixed use development (06)
two or more significant, revenue-producing
Light industrial (0.8)
- Lumber yards
- Laboratories
- Mechanical and electrical work
- Computer data services
- Printing
- Repair shops
- Pedal bike storage.
- Telecommunications and advanced technological equipment manufacturing and processing
Heavy industrial
more intense manufacturing or processing activities, such as those involving or carried out at:
* Refineries (e.g. metals and petroleum products)
* Tanneries
* Brick, tile, or clay production
* Blending tar or petroleum for roofing
* Paving or related work activities
* Rendering plants
* Heavy equipment manufacturing
* Abattoir/meat packing
* Bulk storage of chemicals, fuel oils, or other
define “purpose- built multi-family property” (0.6)
- Built as a rental from the start. Typically includes two or more units.
Land
raw, unimproved land where no alteration for specific purposes has occurred.
Site
to land that is often serviced by utilities (at least to some degree).
Income approach to value
NOI $25 000/ cap rate 0.065=384000
