Diversifying Commercial Market Ruling Pune Real Estate

Pune real estate market is rapidly growing following the Indian real estate trend. The real estate activities are happening at extensive rate in commercial sector of the city. Pune commercial real-estate is developing at a breakneck speed. Retail outlets and malls are mushrooming everywhere to meet the rapid retail boom and the increasing purchase power parity of the middle class. With multiplexes and malls and retail outlets being the popular category, the values of commercial properties in Pune have shot through the roof. Pune developers are increasingly constructing commercial property to meet specific themes in mind.

For instance road-facing commercial complexes with large open area and floor area to accommodate number of commercial ventures is the latest trend in Pune. These real estate buildings are occupied by automobile showrooms as well as theme restaurants. The CBD areas of the city such as Deccan, MG Road are seeing a transition as old real estate buildings are being sold to the commercial owners and for constructing high-rise commercial projects. Large floor plates make these projects flexible in nature to house different commercial organizations.

Pune commercial real estate values are increasing and the current value at Central Business District is approximately Rs 4,000-6,000 per sq ft. Pune Real Estate Builders have started building residential complexes adjoining commercial building to provide an integrated solution to both residential as well as commercial patrons.

Commercial real estate activities in the city are covering the areas such as Bund Garden Road, Dhole Patil Road, Station Road and RTO and has given way to multiple emerging micro-markets like Kalyani Nagar, Senapati Bapat Road, Mundhwa, Aundh, Baner and Yerwada. Even the peripheral locations such as Hinjewadi and Wakad in the west and Nagar Road, Hadapsar Road, Kharadi and Sholapur Road in the east, offer real estate buildings for new offices and expansion plans, thereby making Pune a diverse growth market.

Commercial Real Estate Agents – Why Property Owners Should Hire Them

Industrial or commercial property owners considering leasing or selling their property might be asking themselves about the benefits of hiring a real estate agent. Below are a few key points to mull over:

Presentation – The agent can be the one who goes out to the property before tours to make sure the building and grounds show well. If the landscaping needs attention or if someone has abandoned a car in front of the building, a real estate agent can handle those calls for you. They can alert the building manager or you to any minor repairs that could make a big impact during a property showing such as a broken light fixture. Most agents know what potential tenants/buyers notice when a property is viewed. They can give you advice about getting the carpet cleaned, adding some lighting or a fresh coat of paint. Small modifications can be the difference between getting the space leased and letting it sit vacant for another 6 months.

Paperwork – No one likes to do paperwork, but it’s a necessary evil when it comes to real estate. An agent has access to standardized forms for all types of transactions. In Northern California, industrial real estate agents use forms from the American Industrial Real Estate Association (WinAIR Forms). While a real estate agent will be happy to go over the business points with you (length of lease term, current market rents/sale prices, tenant improvements, etc.), any questions about legal clauses should be directed to your lawyer.

Knowledge – Real estate agents read business journals, white papers, and industry articles to keep in touch with the current market trends in their areas of focus. When you hire a commercial real estate agent, they pass this knowledge along to you without your having to do the homework.

Relationships – Commercial real estate agents maintain relationships with various leaders and officials (such as economic development and planning departments) in the cities/counties of their areas of focus. Some companies do not work with local agents, but do contact various city/county officials when they are ready to explore opening new facilities in the area. Relationships such as these help real estate agents to get in front of many deals before they are brought to the market.

Marketing – Everyone has seen those signs planted in front of properties available for lease or sale, but there is much more to real estate marketing than just a sign. A successful agent will have a marketing plan that includes creating a flyer, sending out post cards to area businesses, and email blasting the local brokerage community. Real estate agents also have access to multiple listing services. Aside from cold calling, these are the true life blood of the real estate business. Searches are run on a daily basis. A good real estate agent will make sure your property is fully listed to get the best returns. When you are ready to hire an agent, don’t be afraid to ask to see a marketing plan.

Profit From Commercial Real Estate Investments

Property investors have now turned their attention towards the lucrative deals presented by the commercial properties. This sudden interest is the result of the option to diversify your property investment portfolio, along with a high income and tax breaks. However, it is advisable to conduct a research before taking the plunge.

Commercial properties include hotels, malls, medical centers, retail stores, business and industrial property. These are operated for a profit from rental income or capital gain. Some common commercial property types are:

– Apartments and multi family units: These are the first choice of investors. Apartment financing and management is very similar to that of residential properties.

– Mobile home parks: These can be a profitable investment option especially if you own the land and sell the mobile homes.

– Retail properties: More than one tenant occupies the premises and it is utilized for retail transactions.

– Offices: This category includes suburban garden offices, suburban high-rise offices, medical offices and central business district offices.

– Mixed use properties: These properties are a combination of all the above property types.

– Health care units: They include assisted living centers and congregate care centers and nursing homes.

– Hotels: The properties are categorized as either limited service or full service.

– Industrial premises: These properties can be used solely for industrial purposes.

– Self-storage units: The consumers use them for personal storage or for lease.

– Other specialties: These include oil change facilities and gas stations.

According to a reputed New York based real estate research firm, the price of apartment complexes rose by 26%, retail properties by 14%, industrial properties by 21% and office buildings by 6%, in 2004. Commercial property investment is very profitable but it is a complex business, as compared to investment in residential properties. There are number of factors that affect the property evaluation of commercial premises. It pays to study the market and tread cautiously.

Boom in commercial real estate property:

Commercial real estate includes, but is not limited to, properties used for educational, medical, commercial or industrial purpose. The properties are usable in business or trade and can be sold or bought in the real estate market. The improvement in the economy and growth in business ventures are responsible for the revival of commercial real estate. Another important reason has been the continuous flow of new investment capital. This capital is sourced from people who seek higher returns from large investments. The areas that come under the category of ‘commercially profitable’ carry a higher evaluation, as compared to other properties in developing areas. The rates for commercial real estate properties are calculated differently from the method adopted for residential properties.

The rental yields are better for commercial properties and the monthly cash flow is more than that of residential property investment, in the same area. The quoted expectation of returns depends on the kind of business that would be transacted on the premises. The profit from commercial real estate investments is definitely much higher than profit generated from investments in residential properties. Investment in commercial real estate is as lucrative as investments in stocks and bonds.

Oregon Commercial Real Estate

Real estate is broadly categorized into two types. This includes residential and commercial real estate. As the name suggests, the latter revolves around sale and lease of property that is intended for use in trade and business. This includes a wide range of business opportunities including shopping malls, gas stations, car parks and office buildings. The Oregon commercial real estate market is huge and encompasses innumerable viable plots and property.

Oregon commercial real estate could refer to an empty plot of land, a building, a store or multiple shops, or even a park. The instant any property is to be used for a business purpose, it is categorized as commercial real estate. Oregon commercial real estate includes land, as well as anything that is permanently built or fixed onto it. These fixtures include nursing homes, buildings and fences. They also refer to pipes, plumbing, heating devices and light fixtures that are inbuilt or fixed on the exterior of a building. Commercial real estate can be purchased, sold or rented as required. Such commitments prove to be profitable for real estate agents who deal in them. Since commercial real estate deals with profitability in the long run, entrepreneurs do no rush into such commitments. It is important to find an Oregon commercial real estate property that is feasible and can help increase trade.

Price points for Oregon commercial real estate depend upon their location. Areas that are established as “commercially profitable” are categorized within higher price brackets, as compared to others located in developing areas. Their rates are calculated differently from residential real estate. A number of Oregon real estate listing companies have dedicated commercial real estate databases that are easy to access and designed to help clients find a viable property in a short time. Before finalizing an Oregon commercial real estate deal, it is important to ensure the property is not blacklisted and all fixtures within it are in compliance with state regulations.

Commercial Real Estate Financing for Business Growth

Commercial property loans are used by many sectors of the business world to finance future investments and expansion efforts to grow a business.

With the recent collapse of the U.S. sub-prime mortgage market, credit is increasingly difficult for consumers to come by. Lenders are reducing their exposure to high-risk ventures. Lingering uncertainty about the credit market as well as the stability of the international money market causes widespread reluctance to finance ventures.

Fortunately for investors seeking commercial real estate financing, the commercial sector is not directly affected by these developments. Although riskier ventures will still be more difficult to finance with credit, the current economic climate has not stalled lenders.

With the recent developments in both the U.S., and across the international credit market, debt is becoming a well known concept.

While economic uncertainty would demand that all investors be prudent about entering into debt, most Organization for Economic Co-operation and Development countries are not in recession. In fact, they have actually experienced record growth and prosperity over the past decade. This lends some robustness to the major western economies.

Most business expansion is financed using commercial loans, so provided debt is entered into for purposes of investment, building, and expansion of the business (rather than a fundamental cash-flow problem). Debt is not in itself a negative thing. It is the return on that debt that is the problem.

Commercial real estate financing can be secured to fund the purchase of land for infrastructure and services development. Power plants, streets, utilities, shopping complexes, office or apartment buildings, parking facilities, parks, resorts, and golf courses, and even medical clinics or private hospitals are just a few such real estate investments.

Frequently, commercial property loans are sought as a means of refinancing existing debt to increase the total value of the investment. It is possible for private investors and companies to make a career in the reiterative process of reinvestment. Financing the cost of expansion against the projected profits of the venture can be quite lucrative.

It is true that there is still some volatility and uncertainty about the stability of the western economies. Consequently, investors should be as vigilant as ever about entering into unprofitable arrangements. Such factors influencing profitability include cost blowouts, too little potential return, or inherently risky ventures.

Investment consultants have made a market for themselves in advising smaller scale investors on commercial real estate financing, and providing them with the means of determining which projects are worth entering into, based on the available information. This includes taking into account the possible blowouts, and considering what might go wrong with any given project.

By applying basic rules of thumb, and not investing beyond certain thresholds, investors can increase their chances of sticking to projects that are within their means.

With the use of specialized software, this process can be further streamlined, allowing financiers to quickly weed out which projects are potentially unprofitable. Based on the available data and taking into account uncertainties and potential threats to the project, financiers can make smarter lending decisions.