Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/649656
30 March | April | 2016 Commercial Investment Real Estate include everything from job creation and building materi- als to property taxes on eligible projects. "We have multiple incentives that the municipality has put in place to attract development downtown," Kim says. T at has really caused developers to take a second look to see if they can make projects f nancially viable in that area, she adds. Part of the challenge that remains in Peo- ria is educating building owners about what incentives are avail- able and how they can utilize them to drive change, she says. Another challenge is manag- ing the risks inherent to these rehab projects. Owners and investors are taking a gamble in making a signif cant capital U.S. Offi ce Space per Worker Source: CoStar S ource : S CoStar 2 1 0 2 220 230 2 4 0 250 260 2 270 270 90 9 2 9 4 96 98 00 0 2 0 4 06 08 10 12 14 Fee eet per Job In Office Space Square Fee p p q p p q p p Space per job rises during a recession per job rises during a recess because job layoffs greatly exceed ecause job layoffs greatly exc space reductions space reductions ace redu investment to reposition space, oftentimes in a market where there is still some excess space to absorb. Making sure the num- bers work is another critical step. "In Tucson, the risk is that the class B and C of ce market is not expanding. So, the of ce building you renovate has to be attractive enough to lure move- up of ce users. T at involves a substantial slug of new cash for an exterior face-lif and interior renovations," Larsen says. Certainly, not every property is a good candidate for a rehab. Some are simply too function- ally obsolete. Likewise, repo- sitioning assets is not the best f t for every owner or investor. T ose endeavors of en require creativity, ingenuity, and some vision to take something that might be a little bit ugly, and make it more attractive and competitive in the marketplace, says Shopof . "It is not just put- ting money in, it is putting money intelligently in the right place to deliver a good result in terms of yield and return on investment," he says. Beth Mattson-Teig is a business writer based in Minneapolis. Tell Your Clients Who You Really Are. Want to make sure your clients and potential clients know you're a CCIM? T en af x your business card to the latest copy of Commercial Investment Real Estate magazine and leave it with them af er your next meeting. Or mail a copy with a personalized note. Bulk copies of CIRE are available to CCIM designees at greatly reduced prices for use in their personal marketing campaigns. Current Issue 1-Year Bulk Subscription ( 6 Issues ) 5 copies $15 $90 10 copies $25 $150 30 copies $60 $360 Limited quantities available, so call today to place your order. Shipping fees will be added to non-U.S. orders. Call 800-621-7027, ext. 4482.