Here's how you can choose the key factors for a niche market in commercial real estate entrepreneurship.

I've found that market demand extends far beyond historical analysis and projections. While traditional models have their place, they fall short in niche markets. To gauge market demand, it's crucial to listen to observe trends. Understanding what types of properties are in high demand within a niche is imperative. This involves more than crunching numbers; it requires a keen eye on local business growth, demographic shifts, and economic indicators. By staying attuned to these factors and aligning investments with market demands, investors can enhance their chances of achieving high occupancy rates and stable returns. Ultimately, the key is a deep understanding of the unique demands of your target tenants.

In most metros, and especially in the largest like Los Angeles, the "commercial" market is so large that you need to develop a niche and probably that niche should be more focused than you would think. All the successful brokers I have met are hyper focused on both geography and product. In my case, I focus on probate real estate requiring court sales to help estates, families, and attorneys avoid the extra costs and delays of the court confirmation process

Please also not forget about Regulatory and Zoning Considerations: - Understand local zoning laws and regulations that may impact the development and use of commercial properties in your niche. - Ensure compliance with all legal requirements to avoid potential issues. These considerations will further help the Landlords to effectively position their niche.

If you have already decided to put your investment in commercial real estate. Then I am certain you have done your research about the market, i mean that’s one of the reason you are reading this! It’s crucial to stay ahead of the curve in commercial real estate, you need to have the real data, emerging market demands and trends. Only this proactive approach will help and save your investors by identifying your properties as high demand properties, ensuring better occupancy rates and returns. Stay informed and head of the curve, that’s the Mantra!

Many large organisations look for green buildings to meet their SDGs. The availability of space in such buildings is a key factor for these organisations to take strategic real estate decisions for their operations. With the growing awareness towards sustainability and more and more organisations across the world making it a core part of their strategy, the need for green buildings is only going to increase in the future. Hence, the easy availability of green buildings is a key factor driving the market demand further in this niche.

Geomapping, cellular ping information and demographics are tremendously important for this. Depending on the type of business or asset you want to develop, purchase or represent. Data is critical for decision making, its 2024 and there is technology to achieve this. Also, beyond all that, if the numbers don't add up, the previous statement doesn't matter...be sure to properly underwrite the opportunity before making any decision.

In the commercial real estate industry the adage has always been the 3 most important factors are "location, location, location". With many brick and mortar retail businesses now shuddered due to competition from online commerce, labor issues and other factors, this may still be true to a certain extent. However, in post-COVID marketplace, due to changes in technology and consumer demand for goods and services becoming more immediate, the decision to invest capital in real estate projects for long term growth must be weighed against inconsistent economic growth, inflation and labor market. If you build it, you better be sure they will come!

One of the most important decisions we will ever make in our lives is where to live. It is the location that will most impact your everyday life and your home’s future value. A great neighbourhood will help sell your home because of increased demand, selling faster and for more money than similar houses in less attractive areas. With all the stress and pressure to find a place, how do you know if a location is truly great? Here are some things to consider that will help you determine if you found a great location.

I had a data scientist look at the last 40 years of price growth in LA County. There were 7 neighborhoods that had the most growth. The commonalities were 1. Close to transit 2. Easily Walkable 3. Large Family Areas 4. 3 to 4 star neighborhoods 5. Ample parking Some of those seem counterintuitive but when I stepped back and looked at what I knew, they seemed obvious. All the analysis in the world isn't as good as boots-on-the-ground observations. Get outside and walk your market.

GeoMap and similar Startups gather a wide array of data to provide comprehensive insights into the real estate market. They collect information on property specifics, such as location, size, price, and availability status. Additionally, they compile socio-economic data, including demographic statistics, income levels, and employment rates. Market trends and transaction histories are tracked to identify patterns and forecast future developments. They analyze competitor activities, project details, and zoning regulations. These firms also scroll all public data, creating useful maps and statistics that highlight factors like crime rates, school districts, & transportation networks. This wealth of data helps you to decide in the right context.

Yes demographic info, but be sure to understand what story are the demographics and the "behaviour around demographics" is telling you and how is that adding or subtracting value to the opportunity you are analyzing.

Demographic insights help entrepreneurs pinpoint specific demographic groups with unique real estate needs or preferences. For instance, understanding the age, income levels, lifestyle preferences, and household composition of potential clients can guide decisions on property types, amenities, and location preferences. When making your selection, this is a must in order to select a property with potential.

I chose this one category because I think it’s central to niche strategies. Think modern in terms of demographics. There are many traditional economics data points, population, industry commitments, in-migration etc, the live-long day. Zero in on your strategy and location. Track U-Haul traffic to affirm in-migration. Analyze transport patterns. Walk the area, understand the area and infrastructure as much as you possibly can. There has to be a rail that you grab to cement the conviction. And don’t skip kicking the strategy and thought capital really hard and repeatedly. Have at least two frank consultants in your thought circle.

The importance of demographic insights lies in the business's understanding that it’s crucial to choose a location that embraces the business, rather than just considering superficial, isolated factors such as wealth, age, and competition. Sometimes a location may not have the highest income in the city, but its demographics show a need for that type of business, indicating a high chance of commercial success.

Ich habe mehrfach erlebt, dass EH-Mieter durchaus in Gegenden mit stagnierender Bevölkerung ansiedeln wollten, weil die Aussicht auf Platzhirsch (kein weiterer Wettbewerber kommt dazu) gegen war.

Being part of associations or groups outside the real estate industry can significantly benefit you in the regional commercial market. By engaging with diverse sectors you can identify and respond to emerging local trends more effectively. We've all seen how once overlooked areas can rapidly transform into trendy and eventually prime locations. Keeping an eye on these developments ensures you remain on the path to success. Staying informed and proactive through various networks provides a broader perspective, allowing you to predict changes and seize opportunities before they fully materialize. Anticipating trends keeps you ahead of the competition and consistently positioned for success. Stay proactive, stay ahead.

As a planner by training and trade, knowledge of zoning regulations and requirements is one of the key advantages I give my clients in the development of commercial real estate (CRE) projects. I have seen developers leave money on the table because they were using outdated planning guidelines and not fulfilling the ultimate goal of the highest and best use! I have also seen developers buy and build based on a zoning 'hope' only to not be able to achieve their plans. Always, always get expert guidance to maximise returns on your CRE project!

One of the most important aspects! It doesn't matter what the numbers tell you for a proposed project. If the Zoning and or any other type of regulation hinders your project, nothing else matters because project feasibility starts with "what I am allowed to do". Then the second question you need to seek an answer is ... "what does the market speed allows to be absorbed within a reasonable rime frame?". For example if a city lot allows me to do a 100 story apartment building for 400 units, and the entire market that you are analyzing absorbs 800 units per year, it is highly unlikely that you will be able to capture 50% of the demand (just a random example). Regulations + market data + demographics = successful projects.

Zoning and understanding the specific uses that are allowed within each municipalities zoning code is critical to any sucessful ISF/IOS investment. With some municipalities looking to maintain their existing zoned industrial properties for spec warehouse or manufacturing product ensuring that outside storage and transportation uses are allowed within your properties zoning is critical to being able to achieve proper market rents within the ISF/IOS space.

Zoning outlines what types of developmental and operational use of land is allowed on a given tract. Municipalities tend to partition districts and neighborhoods according to a master plan. This may be done to promote economic development, control traffic flow, manage noise levels, reserve living space for residents, and protect certain resources.

There are two main strategies when it comes to zoning: 1. Bribe 2. Ignore Both strategies come with risk. Just don’t bribe and then ignore the payment of the bribe. 100% failure rate for that strategy.

ROI, NPVs, Cashflow, Timing, comparative analysis, etc. All very important to have a clear understanding on a CRE project feasibility and desirability. Make sure to have clear expectations and goals, so you can measure against what the financial analysis will throw back at you. So your goals lead your decision making. Because if we don't have clear goals and only desires, emotions get in the way of decision making for CRE project because "we like an area a lot" or "other projects are doing so well". Beware of wishful thinking and set clear goals with objective financial KPIs for decision making. Excel works perfect but depending on the size and complexity of a transaction softwares like Argus can help a lot.

Market analysis , comps, supply demand, demographics, etc allows you to make well thought assumptions that drives the financial analysis. Qualitative drives quantitative! If garbage in garbage out. You can make great good looking models but if assumptions are off you are on trouble.

Les modèles financiers sont basés sur des valeurs de marché : tant les valeurs locatives que les valeurs vénales. On peut citer plusieurs modèles (valeurs de rendement, valeurs métriques, Discounting cash flow, bilan promoteur, terrain+bati), en différenciant les classes d’actif (modèle hôtelier, commerce, habitation, bureau), et les données (état neuf/seconde main, surfaces récentes et comparables,). L’expert immobilier est le juge de paix de la valeur, qui peut être différente du prix de vente négocié par les top Brokers du marché, ou du prix calculé par l’asset manager dans son tableau de bord… les valeurs financières (loyers, prix de vebte), sont donc challengées par les acteurs du marché, et les cycles (croissance, décroissance)…

Conducting a thorough financial analysis is crucial when selecting a niche market in commercial real estate. This involves evaluating property acquisition costs, estimated renovation expenses, and expected rental income. Additionally, factors such as property taxes, insurance premiums, and ongoing maintenance costs should be taken into account. Developing a comprehensive financial model enables you to assess both the risks and potential returns of your investment, ensuring your approach to commercial real estate is based on robust financial planning.

A critical financial analysis point to consider when selecting a commercial real estate investment deal is the property's capitalization rate (cap rate). It provides a snapshot of the potential return on investment and helps assess the property's income-generating ability relative to its cost. Comparing cap rates across similar properties and market conditions helps investors make informed decisions.

Understanding the value of working with a real estate professional is something that can unlock significant value to a companies decision maker and companies bottom line (freeing up time to be spent in other areas, maximizing savings within lease and sale transactions, etc.). Real estate professionals provide invaluable local market knowledge and can create significant savings and protection within lease/sale negotiations by being in tune with market trends that are only continuing to change quicker and quicker within the industrial sector.

Don’t overthink it. Yes, you don’t want to be specializing in industrial real estate in a beachfront community but, other than the obvious, figure out what excites you…what your passion is, then go after it. Plenty of successful people who are big fish in small ponds. Too many people chase the latest craze. Too many small fish in big ponds.

### Key Factors in Choosing a niche market. We look at : Location, Location Focus on a specific geographic area with strong economic growth and development potential. Clientele -Target a specific client group, like investors, developers, or businesses looking to lease commercial spaces. Market Demand -Identify and cater to high-demand sectors, such as tech startups, healthcare facilities, or logistics companies. Unique Value Proposition- Offer specialized services, like sustainability consulting, property management, or investment advisory, to differentiate yourself from competitors. These are the key factor we use when choosing a niche commercial real estate market.

This section provides an opportunity to offer additional examples, anecdotes, or insights that may not have been covered elsewhere. It's a chance to enrich understanding through practical experiences or unique perspectives that contribute to a more comprehensive discussion.