CCIM 101
Two major decision makers - answerUsers and investors
Users - answerThose who make decisions regarding space that they need to use for
their business
Investors - answerThose who make decisions regarding investments in properties that
are or could be leased to users
Can a user also be an investor? - answerYes. Even so it is useful to separate the
decision to use the real estate from the decision to invest in the real estate. A property
can have great use but maybe a bad investment.
User decisions - answerUsers want space that meets the needs of their business in
terms of location, size and layout of the space, quality of building and perhaps proximity
to other business suppliers and customers
Users decisions part two - answerShould space be acquired?
What type and how much space should be acquired?
Where should the space be acquired?
What should the space acquisition entity be?
Should the space be a purchase or lease?
What should the acquisition process be?
User decision leased space - answerShould discretionary capital expenditures be
made?
Should the capital structure of acupuncture be changed?
Should the space utilization be changed?
Should the user continue to occupy the space?
Should any lease options be exercised?
Should the lease be renegotiated?
Should the space be disposed of?
User decisions owned space - answerShould discretionary capital expenditures be
made?
Should the capital structure be changed?
Should the space utilization be changed?
Should the user continue to occupy the space?
Should the property be sold or exchanged?
, User disposition decisions - answerWhat should the disposition price be?
Should should the disposition method be?
Should should the disposition process be?
Investor decisions - answerInvestors are primarily interested in receiving a return on
investment (yield) that is commensurate with the risk that they will incur by making an
investment.
Rate of return - answerThe rate of return is the percentage return on each dollar
invested for each period it is invested. Rates of return can be estimated on before tax or
an after tax basis
Acquisition decisions - answerShould investment real estate be acquired?
What type of investment real estate should be acquired?
When should investment real estate be acquired?
Where should investment real estate be acquired?
Which of the available investment real estate alternatives should be acquired?
How should the investment real estate be acquired?
What should be the sources of debt and equity capital?
What should the investment real estate acquisition entity be?
What should the acquisition price and terms of the investment real estate be?
Investor holding period decisions - answerShould discretionary capital expenditures be
made?
Should the financing structure be changed?
Should the property use be changed?
Should the property be held or sold?
Should the operating strategy be changed?
Investor disposition decisions - answerWhat should the disposition price be?
What should the disposition method be?
What should the marketing process be?
When will investors invest in real estate? - answerInvestors will only invest in real estate
if it has an expected return that is competitive with other investment alternatives of
comparable risk. Real estate competes for investor dollars with other investments
alternatives.
What two major asset classes compete with real estate for investment capital? -
answerTo understand the real estate universe, the discussion must involve commercial
real estate as it compares to the tow major asset classes that compete with real estate
of investment capital bonds and stocks.
Prior to 1960 major institutions invested only in highly liquid bonds. Stocks were ignored
due to a lack of information and transparency. Now - answerInvestors are giving
significant attention to another major asset class commercial real estate. Commercial
Two major decision makers - answerUsers and investors
Users - answerThose who make decisions regarding space that they need to use for
their business
Investors - answerThose who make decisions regarding investments in properties that
are or could be leased to users
Can a user also be an investor? - answerYes. Even so it is useful to separate the
decision to use the real estate from the decision to invest in the real estate. A property
can have great use but maybe a bad investment.
User decisions - answerUsers want space that meets the needs of their business in
terms of location, size and layout of the space, quality of building and perhaps proximity
to other business suppliers and customers
Users decisions part two - answerShould space be acquired?
What type and how much space should be acquired?
Where should the space be acquired?
What should the space acquisition entity be?
Should the space be a purchase or lease?
What should the acquisition process be?
User decision leased space - answerShould discretionary capital expenditures be
made?
Should the capital structure of acupuncture be changed?
Should the space utilization be changed?
Should the user continue to occupy the space?
Should any lease options be exercised?
Should the lease be renegotiated?
Should the space be disposed of?
User decisions owned space - answerShould discretionary capital expenditures be
made?
Should the capital structure be changed?
Should the space utilization be changed?
Should the user continue to occupy the space?
Should the property be sold or exchanged?
, User disposition decisions - answerWhat should the disposition price be?
Should should the disposition method be?
Should should the disposition process be?
Investor decisions - answerInvestors are primarily interested in receiving a return on
investment (yield) that is commensurate with the risk that they will incur by making an
investment.
Rate of return - answerThe rate of return is the percentage return on each dollar
invested for each period it is invested. Rates of return can be estimated on before tax or
an after tax basis
Acquisition decisions - answerShould investment real estate be acquired?
What type of investment real estate should be acquired?
When should investment real estate be acquired?
Where should investment real estate be acquired?
Which of the available investment real estate alternatives should be acquired?
How should the investment real estate be acquired?
What should be the sources of debt and equity capital?
What should the investment real estate acquisition entity be?
What should the acquisition price and terms of the investment real estate be?
Investor holding period decisions - answerShould discretionary capital expenditures be
made?
Should the financing structure be changed?
Should the property use be changed?
Should the property be held or sold?
Should the operating strategy be changed?
Investor disposition decisions - answerWhat should the disposition price be?
What should the disposition method be?
What should the marketing process be?
When will investors invest in real estate? - answerInvestors will only invest in real estate
if it has an expected return that is competitive with other investment alternatives of
comparable risk. Real estate competes for investor dollars with other investments
alternatives.
What two major asset classes compete with real estate for investment capital? -
answerTo understand the real estate universe, the discussion must involve commercial
real estate as it compares to the tow major asset classes that compete with real estate
of investment capital bonds and stocks.
Prior to 1960 major institutions invested only in highly liquid bonds. Stocks were ignored
due to a lack of information and transparency. Now - answerInvestors are giving
significant attention to another major asset class commercial real estate. Commercial
