The practice of owning real estate for profit dates back thousands of years and investing in real estate is one of the oldest forms of investing that I know of. Real Estate has certainly evolved over the years and today there are many different avenues to gain exposure to the asset class. When an investor does this, they are engaging in commercial real estate and within that classification there are several terms and metrics that are commonly used that are not used in typical residential home ownership. I thought it would be beneficial to sit down with an industry expert to cover the basic terminology, what they mean, and why they are critical to be very familiar with anytime someone is considering investing in commercial real estate. Mike Stubben is the President of Summit Investment Research, a company that specializes in providing best in class research, analysis, and education on commercial real estate, BDC’s, and Interval Funds. I had an opportunity to get his insight and thoughts on these important ares of commercial real estate. I hope you enjoy episode 6 with Mike Stubben on commercial real estate investing 101, Terms and Metrics.
SOME QUESTIONS I ASK
• What are the key terms to know when investing in commercial real estate
• Typical cap rates on different property types
• Are there cycles in commercial real estate and how to identify them
• What is the difference in a gross lease versus a net lease
IN THIS EPISODE, YOU WILL LEARN
• The most important metrics to understand when investing in commercial real estate
• Commercial real estate trends over the last 10 years
• The impact of the use of leverage on commercial real estate and cap rate spreads
Mike Stubben and Summit Investment Research contact information
• www.summitinvestmentresearch.com
• Phone number: (480)-722-2737