| If the terms "commercial real estate" is alien to | | | | new things to explore here. If you're looking into |
| you, then this article will serve as a good jump-off | | | | cashing in on the Miami commercial real estate |
| point, should you consider dabbling into the colorful | | | | market, then you're definitely going to get some |
| world of Miami commercial real estate. Truth be | | | | windfall after a short while. That is, of course, if |
| told, commercial real estate is both a simple and | | | | you know to work it. |
| complicated concept. | | | | Pricing Miami Commercial Real Estate Properties |
| Simple, in the sense that you can easily | | | | How do you determine the value of a Miami |
| understand all the basic ideas and process, and | | | | commercial real estate property? Three ways: |
| complicated, in a way that will probably cause a | | | | based on the cost of building a similar property, |
| lot of confusion once the discussion goes deeper. | | | | the prevailing market value of such property |
| Since you're a beginner to commercial real estate, | | | | type, and the property's net operating income. |
| then let's stick with the easy part, first. | | | | Net operating income means total income |
| Understanding Commercial Real Estate | | | | generated when the property is fully utilized minus |
| Commercial real estate in Miami is basically the | | | | maintenance and operating costs, taxes, |
| same as in any other U.S. territory, although | | | | uncollected rents, and other losses. |
| business in Miami might be more active than, say, | | | | Once you have these prices with you, since |
| Iowa, for instance, because Miami is one of the | | | | you're dealing with a Miami real estate property, it |
| most popular tourist and party hubs of the | | | | would be all right to tack on an additional 5% to |
| country. But before we get into that, let us | | | | 10% to the rate. When selling real estate, it's |
| identify what commercial real estate means. | | | | always best to give your potential buyer the |
| Commercial real estate pertains to any kind of | | | | highest, yet fairest, possible price you can give |
| property that is either bought or sold based on | | | | for the property and then negotiate from there. |
| the commercial value it brings. For example, a | | | | If you start with your lowest possible price, then |
| building is considered commercial property. An | | | | it's likely that the other party will want to go |
| apartment unit is so, too. So is a school, a | | | | much much lower. You end up with nothing, and |
| hospital, a retail outlet, a resort, a hotel, a parking | | | | even with a deficit, if this happens. |
| lot, and even a single-family home, as long as its | | | | As a beginner to the Miami commercial real estate |
| being used for rentals. Any kind of property that | | | | market, it is prudent to read up on the current |
| makes money off itself is categorized as | | | | market trends and how-tos of real estate |
| commercial real estate. The home you occupy is | | | | investment first before making your initial move. |
| not included in this list. | | | | You can simply argue that gut feel would work, |
| Property prices in Miami may be a bit higher than | | | | but when you're dealing with this much money (as |
| the its quieter counterparts, because Miami is | | | | you're in Miami, where properties could reach |
| constantly bustling with activity. Celebrities and | | | | millions of dollars) it's best to be on the safe side. |
| tycoons buy houses here, business want to set | | | | After all, you wouldn't want your first try to blow |
| up shop here, and tourists are always looking for | | | | up in your face, right? |