About the Course

We will present a more in-depth review of commercial real estate in response to the demand for more material than we have been able to cover in the popular "Introduction to Commercial Real Estate" class. 

Course Topics

Among many topics, this class includes:

Commercial Leasing

• Basic types and terminology of commercial transactions
• Differences between commercial and residential real estate practices
• Types of commercial leases
• Fair Housing laws and how they apply in commercial real estate
• Leasing vs. Subleasing – definitions and the advantages/disadvantages of each
• Issues regarding "location" and client needs
• Working with commercial tenants & identifying their "real" needs
• The features of commercial space – building features, hours of operation, elevators, availability of water, storage, traffic, etc.
• Discussion of various tenants with special needs
• Classes of Commercial Buildings – A, B, C & F buildings
• How commercial space is measured; "loss factors" – rentable vs. useable space.
• Additional costs – "Pass throughs," electric, taxes & utilities
• Commercial rent escalations & lease renewals
• The process of finding & researching commercial space
• Computerized research tools and how to use them -- Property Shark, OLR, Loopnet, CoStar, Craigslist, etc.
• The anatomy of a business leasing transaction
• Commercial leasing case studies
• Preparing, submitting & negotiating a commercial offer
• Financial information / Landlord location visits

Commissions & Getting Paid

• The Lehman Scale
• Other techniques and trends in computing commissions
• Review of commission agreements & broker protection

Building Investment Sales & Purchases

• Basic overview of sales and purchases
• Types of Investment Properties
• Reasons people buy and sell buildings
• Flip transactions
• The 1031 Exchange
• Knowing your buyer and seller – buy and sell, vs. hold
• Issues in property location and buying strategies
• Finding Buildings for Sale
• Review of building Set-ups; basic information presented and weeding through seller-provided information
• Viewing and Inspection Issues
• Financial Analyses – Measurement of value and financial performance
• Computation of accurate revenues, expenses and net income
• Capitalization rates, gross rent multipliers
• Debt service coverage, break even ratios, "cash-on-cash"
• Comparables – neighborhood and building analysis
• Mortgage assumability and financial considerations
• Distressed properties; Foreclosed properties
• A purchase or sale offering and what it contains
• "Due Diligence" and structural issues
• Researching and dealing with building violations – DOB & ECB Violations
• NYC building inspections
• The broker's role in closing the transaction
• Post-closing Exit Strategies
• Case studies and analyses