How To Avoid The Risk Of Operating In The Commercial Real Estate Development
Posted: Sep 27, 2013
The so-called commercial real estate (Business Real Estate), real estate products for commercial purposes in accordance with the end use of the real estate category, this type of real estate product development purposes that is not used for living or another, but for commercial use. A wide range of commercial real estate, including shopping malls (shopping centres, etc.), the professional market, entertainment, recreational places and all kinds of consumer sites, commercial property development and management. In comparison with the residential development, commercial real estate development project may have a higher return on investment and appreciation potential, but may also be lurking at greater risk. Pursue large-scale development, investment, return on commercial real estate development model, is the amplification of risk.
Commercial real estate development and general real estate development the biggest difference lies in the commercial real estate need to be considered a commercial operation. The healthy development of the commercial real estate market, you need a rational choice for investors, but also requires the development of rational development and commercial agent, commercial management companies mature operation to ensure By the large number of cases in the domestic commercial real estate development, we find that most development projects fail for the lack of commercial operation or prematurely. The risk of a variety of commercial real estate development, the most difficult to deal with the most prominent is the risk of commercial operation. However, commercial and real estate often or "mismatch", commercial real estate developers do not understand the commercial phenomenon of widespread commercial real estate investment project risk is great in this situation. Should co-ordinate the management of seeking to eliminate hidden dangers and ways to defuse the risk of commercial real estate. Commercial real estate development, we must guard against the risk of commercial operation can consider the following countermeasures strategy.
Commercial real estate development, the pursuit of present value, but the appreciation of the future, it is at this point to make it different from the usual sense of the real estate development. Commercial real estate development operation in accordance with the investment rely on the commercial operations to the value-added concept, not only prior to orientation, planning, positioning several stages in order to break ground, but also after the completion of construction works through a series of commercial operation of the real estate to obtain appreciation. Completion of the construction project is the new phase of commercial real estate development, not the end, makes the real estate business development and operation through the late to get appreciation, and further expand the scale of the development of the surrounding residential and other building facilities, developers and investors bring greater benefits. Real estate development, the lack of commercial development, or real estate development and commercial development and do not take the sector, this fault type of commercial real estate development is not only difficult to make real estate to get appreciation. The same time, because without the support of the commercial development of real estate development itself, it is difficult to be successful. Once developed, suffered losses, not just developers, investors and operators, and even spread to the financial institutions, and the formation of a difficult to solve the debt chain.