In this podcast Joseph discusses commercial real estate from its different points of view. Like a diamond, commercial real estate has many facets which provide different perspectives. Looking at only one facet we see only that one perspective. But there is more to commercial real estate than just one perspective, isn’t there.
We must learn to “step into the shoes†and view real estate from the same perspective as the developers who bring to life the architectural visions of the future and at the same time are concerned about the development profits above cost to build that vision of the future. We must also learn to view real estate from the same perspective as the buyers and sellers who- in an imperfect market- negotiate the discounted or premium prices paid for the property’s income stream. Finally, we must also learn to view real estate from the same perspective as the lenders, appraisers, and counselors who are concerned about the cyclical nature of real estate and its effects on value.
Why bother? It’s the ability to digest the functional, financial, and marketable perspectives of commercial real estate that gives us the insights that we need to determine if a property is a good economic fit to our investment objectives which reveals a property’s worth to us. As the saying goes: “…it’s far better to buy a wonderful (property) at a fair price than a fair (property) at a wonderful price…”-Warren Buffet. (Based on Joseph’s manuscript and seminar presentation of “Financial and Investment Analysis for Commercial Real Estateâ€)
