Not so long ago, it may have seemed to many that the real estate market was beyond repair. If you’re one of the people who thought so, you aren’t alone. However, this is no longer the case, especially when it comes to commercial real estate. Commercial real estate has changed over the past few years, with many prominent and successful commercial real estate companies of today being up and coming companies just a decade ago. But the fact is that there is much that goes into running a commercial real estate business that people don’t take into account. Many people don’t even know the tenant representation definition, never mind the rest of what goes into commercial real estate in this day and age. Let’s look into the realities of the commercial real estate industry, and what it means to take into account things like the real tenant representation definition, and much more.
Commercial Real Estate Today: Where Are We?
According to experts, the commercial real estate industry is hitting points now that it hadn’t seen in a long time until then. The fact is that the commercial real estate industry did, like the rest of the real estate industry, take a hit a while back. But after hitting the post-crash trough in 2009, commercial real estate property values have increased by 42%. That’s a major number that cannot be dismissed. Another factor to consider is demand. The largest amount of demand for commercial real estate property come from multifamily and industrial sectors. These two markets are huge right now for commercial real estate. In 2012, the U.S. housing market absorbed 125,000 apartment units. The fact is that in some areas, there aren’t even enough apartment units for the amount of people who need them. This means that commercial real estate investors can invest in buildings that can be converted into apartment complexes — or build new ones — knowing that these is a waiting market for this real estate. Of course, let’s not forget the other sectors with great demand. Office space, retail buildings, warehouses, and lodging accounted for 48 billion square feet of space in 2015. The fact is that the commercial real estate industry bounced back in a big way — and we’re glad it did. However, there’s more to commercial real estate than meets the eye, and certain technicalities have to be observed to keep a commercial real estate investment running smoothly.
Tenant Representation Definition: What Does It Mean?
When it comes to tenant representation definition, many have a hard time understanding what this part of the commercial real estate investment process actually means. It’s actually rather simple. The tenant representative is the person — usually a real estate agent or broker — who represents the tenant when finding space and negotiating a lease. There are many reasons why a tenant and commercial real estate company leasing property would need this kind of representative in play. The tenant gets the lease they want in need; while the company benefits from the fact that the property is being leased in the first place. By keeping in touch with these representatives, a commercial real estate company can be sure that their property is being considered in appropriate scenarios, and will be on the minds of tenants in need of space. Tenant representation services are what people consider before the property is leased — but what about after?
Property Management: How It Can Bring Value
Before and after a property has been leased, landlords want it looking good and running smoothly. This can be best achieved by employing a property manager. A property manager acts on the real estate company’s behalf, ensuring that the property in question is being well cared for. A property manager can interact with the tenant and ensure that nothing is amiss. A property manager is important to keep in mind when commercial real estate is being leased in particular. A tenant will appreciate having someone to turn to directly should there be any problems with the property. In this case, everyone benefits.