Corporate Real Estate (CRE) is the real property that a company owns or holds for the purpose of housing its operations and housing its employees. It provides a productive environment for corporations to house staff, manufacture and sell products, and provide marketing services.
Corporate real estate encompasses all types of property, land, and structures, including office buildings, data centers, manufacturing facilities, logistic centers, corporate offices, distribution facilities, retail stores, and hotels.
Traditionally, organizational real estate professionals were responsible for maintaining the physical property of the company. They were in charge of attaining, trying to maintain, and discarding property investments throughout their “lifecycle,” or useful life.
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Corporate Real Estate Careers
If you are passionate about corporate real estate, then it may be the right career pathway for you as corporate real estate jobs have a huge variety of jobs.
Facilities manager, property manager, real estate specialist, head of corporate real estate, and traditional analyst are some of the job roles found in the real estate industry.
Roles And Responsibilities Of Corporate Real Estate Jobs
The roles and responsibilities of corporate real estate professionals vary depending on the job role. However, the roles and responsibilities of a corporate real estate generalist may include the following:
- Managing, Leasing, acquisition, disposition, and site selection activities for the company.
- Serving as a close collaboration between senior management and firms hired to maintain/manage the company’s real estate properties.
- Maintain strong relationships with third-party leasing and sales brokers.
- Keeping a database and regularly appraising all real estate owned by the corporation.
- Working with legal counsel to draft and scrutinize legal documents.
- Touring potential sites.
- Performing market analysis, including traffic counts, site accessibility, demographics, employee location, and competitor locations.
- Collaborating with internal teams to manage due diligence, entitlement, budget design, engineering, and scheduling in the purchase or development of new locations.
The real estate industry is growing rapidly, with numerous types of real estate job vacancies for those willing to participate in trying to assist with the purchase, management, or sale of properties.
Corporate real estate jobs are spread across different occupations. This will help you identify which aspect of the business is the best fit for your skills and interests.
Leasing Consultant
A leasing consultant meets with prospective tenants and shows them available properties. In addition, the consultant will explain the terms of the lease and the rental procedure. Current renters are frequently assisted by leasing consultants in scheduling upkeep and handling lease renewals.
Leasing Agent
A leasing agent frequently represents property owners by meeting with prospective tenants and giving a tour of the property. The leasing agent filters candidates who can apply, qualify tenants, and handle lease paperwork.
Leasing Manager
The leasing manager is in charge of overseeing activities throughout the entire investment home, which may include multiple apartments, condos, or rental homes.
The leasing manager is in charge of keeping the property at a high occupancy level by properly marketing it, maintaining the rental sites, showing available units, and processing paperwork. Leasing managers have authority over leasing agents and advisors.
Property Manager
A property manager manages the administrative functions associated with marketing a rental property, negotiating leases, and maintaining the estate. A property manager is in charge of determining the appropriate rental value for the zone, collecting rent, and managing the property’s budget to ensure profitability.
In addition, the manager will contract for maintenance and landscaping services, as well as schedule repairs and routine maintenance.
Real Estate Manager
Real estate managers work on behalf of property owners to list and sell their properties. With any residential or business property sale, these professionals assist their clients in maximizing their return on value.
Their duties include conducting market research, conducting proper research on the estate or terms of the acquisition, marketing the property, and attempting to negotiate property agreements.
Home Inspector
A home inspector inspects real estate to alert potential buyers of any problems. The plumbing and electrical processes, water management, exterior structures, ventilation systems, roofing, attic, flooring, and other aspects of a home are all examined by the inspector.
The inspector informs the potential buyer about the property’s condition and provides recommendations on how to manage and care for it.
Mortgage Loan Originator
Mortgage loan originators assess loan eligibility, determine their loan eligibility, and execute lender proposals and contracts. They must be knowledgeable about the multiple home loan programs available.
Their responsibilities include advising potential homebuyers on the mortgage application process and the best loan programs for their specific needs and financial situation.
Mortgage Broker
A mortgage broker works as an interface between the lender and the borrower when executing a mortgage. The broker tends to work for the buyer of real estate and assists with loan origination.
A broker will assess their client’s financial situation and find several lenders and loan programs that are appropriate for the buyer’s needs. The broker then makes deals with the lending institution on the buyer’s behalf.
Real Estate Agent
An estate agent assists people with the purchase and sale of the property. The agent analyses the market and provides advice based on current market conditions. They show buyers around properties and help them find real estate that suits their needs. Sellers benefit from real estate agents listing, marketing, and showing off their residences.
Real Estate Associate
A real estate associate is typically involved in the sale and leasing of real estate. These associates typically work in the real estate segment, though they may also work in residential housing occasionally.
Real estate associates in the industry show residences to potential buyers or tenants, negotiate contracts, and carry out sales or lease agreements.
Commercial Buildings
Commercial buildings are an essential part of doing business for both those who own them and those who rent them. A commercial building may constitute one or more of several types. The main types include:
- Multifamily
- Offices
- Industrial
- Retail
- Hotels/hospitality
- Mixed-use
- Lands
- Special purposes
How To Find Commercial Buildings For Sale?
Finding a commercial building for sale can be a hectic procedure, but it can be done with ease by following these guidelines.
Hire A Commercial Real Estate Broker
Finding commercial buildings for sale can be done easily with the help of a real estate broker. Commercial real estate brokers specialize solely in the leasing and sale of commercial property, such as offices, retail, and industrial space. They will be your personal lawyer and expert adviser throughout the leasing process.
They will not only assist you in finding space, but they will also be able to assist you in negotiating your lease so that you know you are getting the best deal possible.
Search The Internet
Commercial buildings for sale can also be found with the help of the internet. If you’re just starting, you might not need the assistance of a broker to find a commercial property.
Perhaps you simply want to see what’s on the market through the internet. Alternatively, get a sense of rent prices. You’ll be able to locate a commercial real estate broker who specializes in the neighborhood or area you want to live in.
Networking With Other Business Owners
Business owners who are already in the neighborhood or area where you want to rent a retail property can be a fantastic resource.
They’ll usually be aware of what’s available or will be available in the near future in the area.
Drive Around The Market
Commercial buildings for sale can be a rewarding experience by simply driving around the areas where you want to open your business or live. You might also want to take a walk around your neighborhood, depending on its location.
Driving or having to walk to your market can indeed be a time-consuming process, but it can also be extremely beneficial. You might explore parts of your neighborhood you’ve never seen or you might come across a rare find of a business.
Corporate Real Estate Management
Real estate operating overhead expenses account for 10% of an organization’s turnover or budget. As a result, it is even more critical to continuously optimize the asset suite and its use.
Corporate Real Estate Management (CREM) is not a new field of study in real estate. It coexists with several other real estate processes, like valuation, facility management, property development, and property investment.
One significant distinction is that CREM performs its function by managing non-real estate organizations’ real estate needs. Their primary line of business ranges from telecommunications, retail, logistics, education, and manufacturing, to name just a few examples.
It is a widely accepted approach to managing a company’s operational real estate portfolio professionally. CREM has gained prominence on the management agendas of banks and other financial institutions in recent years, owing to the increasing share of real estate prices in total operational expenditure, the modern need to increase productivity, and the growing significance of real estate as an asset class.
In the semi-public sector, Corporate Real Estate Management (CREM) is also called Public Real Estate Management (PREM). It is one of the most important aspects of managing a company’s, corporate group’s, or public institution’s real estate portfolio.
The Advantages Of Corporate Real Estate Management (CREM)
The following are the most prominent and most promising advantages of CREM:
- Cost Saving
- Cost and data transparency
- Planning security and planning perspective
- Best practice approach through in-depth know-how and market knowledge
- Creating options for cost-effective and functional expansion
Commercial Leases
A commercial lease, as opposed to a residential lease, is an agreement between a tenant (business) and a landlord that specifies the property only for business or commercial use. Particular zoning needs dictate which sort of business you can actually function out of a particular area or space, depending on where the building is located.
Types Of Commercial Leases
There are four types of commercial leases; here is their breakdown and a comparison of the different types of commercial leases.
Gross Lease/Full Service Lease
This type of commercial lease includes all property operating expenses in the tenant’s base rent. As a result, base rent appears to be higher than other lease types because the landlord is responsible for the coverage of property costs from tenants’ rents.
It further includes:
- Utilities
- Property taxes
- Insurance
- Common area maintenance
The lease includes anything and everything that has to do with building operations and regular maintenance.
Modified Gross Lease/Modified Net Lease
Generally, a modified gross lease or modified net lease is the most equitable for both parties to the contract. Essentially, the above-mentioned fixed base rent and real estate operating expenses are managed and negotiated between the contracting parties.
It further includes:
- Single Net Lease (N): The net lease, unlike the gross lease, doesn’t even include the real estate operating expenses. In other words, the base rent appears to be lower, but there are additional costs to service and maintain the building.
- Double Net Lease (NN): The main distinction between a single net lease and a double net lease is that the tenant pays a portion of the property taxes as well as the property insurance.
- Triple Net Lease (NNN): You may well have guessed it based on the same pattern. On top of that, the tenant tends to pay for most of the taxes as well as common space maintenance in a triple net lease. This is perhaps the most advantageous for the homeowner, as the tenant bears all costs involved with the building’s operation (s).
Percentage Lease
Whenever a commercial tenant signs a percentage lease, they pay a base rent plus a percentage of their overall sales. In most cases, this allows the tenant to receive a lower base rent in exchange for sharing their additional benefits with the homeowner. Because the lease is based on monthly business, this type of lease is common in retail businesses.
The Corporate Real Estate Industry And The COVID-19 Pandemic
The COVID-19 pandemic has shaken the corporate real estate (CRE) sector, as it has nearly every other industry. As businesses reopen, owners are faced with difficult policy choices, such as whether or not to continue renting office space. As a result, landlords and other corporate real estate investors may continue to see a decline in their revenue.
