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7 Steps to a Hot Commercial Real Estate Deal In Mumbai

7 Steps to a Hot Commercial Real Estate Deal In Mumbai India 7 Steps to a Hot Commercial Real Estate Deal In Mumbai India, Ask any real estate professional about the benefits of investing in commercial property. But how do you evaluate the best properties? And what separates the great deals from the duds? Like most real estate properties, success starts with a good blueprint. Here\'s one to help you evaluate a good commercial property deal.7 Steps to a Hot Commercial Real Estate Deal In Mumbai  1) Learn What the Insiders Know To be a player in the commercial real estate, learn to think like a professional. For example, know that commercial property is valued differently than residential property.7 Steps to a Hot Commercial Real Estate Deal In Mumbai  Income on the commercial real estate is directly related to its usable square footage. That\'s not the case with individual homes.7 Steps to a Hot Commercial Real Estate Deal In Mumbai  You\'ll also see a bigger cash flow with commercial property. The math is simple: you\'ll earn more income on multifamily dwellings, for instance, than on a single-family home.7 Steps to a Hot Commercial Real Estate Deal In Mumbai  Know also that commercial property leases are longer than on single-family residences. That paves the way for greater cash flow. Lastly, if you\'re in a tighter credit environment, make sure to come knocking with cash in hand. Commercial property lenders like to see at least 30% down before they\'ll give a loan the green light. 2) Map Out a Plan of Action Setting parameters is a top priority in a commercial real estate deal. For example, ask yourself how much can you afford to pay and then shop around for mortgages to get a sense of how much you will pay over the life of the mortgage.7 Steps to a Hot Commercial Real Estate Deal In Mumbai  Using tools like mortgage calculators can help you develop good estimates of the total cost of your home.  Other key questions to ask yourself include:  How much do you expect to make the deal? Who are the key players? How many tenants are already on board and paying rent? How much rental space do you need to fill? 3) Learn to Recognize a Good Deal The top real estate pros know a good deal when they see one. What\'s their secret? First, they have an exit strategy – the best deals are the ones where you know you can walk away from. It helps to have a sharp, landowner\'s eye – always be looking for damage that requires repairs, knows how to assess risk and make sure to break out the calculator to ensure that the property meets your financial goals. 4) Get Familiar With Key Commercial Real Estate Metrics The common key metrics to use for when assessing real estate include: The NOI of a commercial real estate property is calculated by evaluating the property\'s first year gross operating income and then subtracting the operating expenses for the first year. You want to have positive NOI. Cap Rate A real estate property\'s \"cap\" – or capitalization – rate, is used to calculate the value of income-producing properties. For example, an apartment complex of five units or more, commercial office buildings, and smaller strip malls are all good candidates for a cap rate determination.7 Steps to a Hot Commercial Real Estate Deal In Mumbai Cap rates are used to estimate the net present value of future profits or cash flow; the process is also called capitalization of earnings.7 Steps to a Hot Commercial Real Estate Deal In Mumbai Cash on Cash Commercial real estate investors who rely on financing to purchase their properties often adhere to the cash-on-cash formula to compare the first-year performance of competing v. Cash-on-cash takes the fact that the investor in question doesn\'t require 100% cash to buy the property into account, but also accounts for the fact that the investor will not keep all of the NOI because he or she must use some of it to make mortgage payments.7 Steps to a Hot Commercial Real Estate Deal In Mumbai To uncover cash on cash, real estate investors must determine the amount required to invest to purchase the property or their initial investment. 5) Look for Motivated Sellers Like any business, customers drive real estate. Your job is to find them - specifically those who are ready and eager to sell below market value.7 Steps to a Hot Commercial Real Estate Deal In Mumbai The fact is that nothing happens - or even matters - in real estate until you find a deal, which is usually accompanied by a motivated seller. This is someone with a pressing reason to sell below market value. If your seller isn\'t motivated, he or she won\'t be as willing to negotiate.7 Steps to a Hot Commercial Real Estate Deal In Mumbai 6) Discover the Fine Art of Neighborhood \"Farming\" An excellent way to evaluate a commercial property is to study the neighborhood it\'s located in by going to open houses, talking to other neighborhood owners, and looking for vacancies. 7) Use a \"Three-Pronged\" Approach to Evaluate Properties Be adaptable when searching for great deals. Use the internet, read the classified ads and hire bird dogs to find you the best properties. Real estate bird dogs can help you find valuable investment leads in exchange for a referral fee.   The Bottom Line By and large, finding and evaluating commercial properties is not just about farming neighborhoods, getting a great price, or sending out smoke signals to bring sellers to you. At the heart of taking action is basic human communication. It\'s about building relationships and rapport with property owners, so they feel comfortable talking about the good deals —and doing business with you. read more .......          
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November 29, 2017

TCS SEALS THE DEAL FOR INDIA’S LARGEST OFFICE SPACE IN THANE

TCS SEALS THE DEAL FOR INDIA’S LARGEST OFFICE SPACE IN THANE TCS SEALS THE DEAL FOR INDIA’S LARGEST OFFICE SPACE IN THANE, India\'s largest office space deal has just been concluded in Thane. Software major Tata Consultancy Services recently signed on the dotted line to pick up 19 lakh square feet for its biggest office under one roof at Hiranandani Estate in Thane. Once delivered, TCS will be able to accommodate 30,000 of its employees in this office. Hiranandani Constructions hopes to deliver the office in the next year-and-a-half. TCS and Hiranandani have signed a 15-year contract with the option of a reset clause every three years. The monthly lease rental for space is between Rs 50 and Rs 55 per sq ft and that the annual lease rental for the property will be in the range of Rs 120 crore to Rs 130 crore. While confirming the deal to Mumbai Mirror, Niranjan Hiranandani said that it will boost job generation in Thane - direct and auxiliary -- which has been on the downswing after industries shut down in Thane. \"We have given 19 lakh so feet to the TCS on a long lease for setting up a single beam IT park. This will be the largest one in the country owned by a single company. Nearly 25,000 people in Thane will get jobs. A lot of people in Thane lost jobs when industries closed down. These 25,000 jobs are much more than the jobs lost during closure of industries. Work has already started and it will take nearly one and a half years to complete it. We will provide the best architecture here,\" he said. Confirming the reports Thane Municipal Commissioner Sanjeev Jaiswal said, \"It is a matter of pride that the TCS campus is coming to Thane. This one is going to be a grand project and we are working towards it.\" Pauroos Karkaria of TCS did not respond to calls from this newspaper. The Thane lease will help India\'s largest software services exporter to consolidate its growth plans. The revenues of TCS stood at Rs 24,220 crore in 2015 and the company has a headcount of 3.2 lakh. During the announcement of the company\'s annual results last year, N. Chandrasekaran, MD & CEO of TCS had said: \"We have laid a strong foundation for growth in 2015-16.\" TCS has 19 offices in Mumbai and the surrounding areas, including its headquarters, and 10 delivery centers in Mumbai and Thane. The lease deal also signals a revival in the commercial real estate market in Mumbai, which had turned sluggish of late. Source: Mumbai Mirror 
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March 27, 2017