In the CRE world today, MOB and NNN assets are trading at favorable cap rates in some secondary markets and can provide investors with favorable NOI, especially since the CMBSmarket is coming back, though it must be stressed that a Phase I ESA, as well are an ALTA Survey are crucial steps to take before investing, whether you are part of a JV, LLC, LP or a REIT.
To many of us, the previous sentence, though it is very long, essentially makes sense. But did it ever occur to you that to someone just starting in commercial real estate industry, much of the above language could be coming from a Martian?
We tend to use a lot of slang, jargon and acronyms in our day-to-day activities –- in other words, our industry buzzwords. We assume that everyone knows what we mean, but what may be obvious to you may not be to our customers, vendors, partners or even co-workers.
Of course, we use these terms because a lot of this stuff is a mouthful. For example, try say commercial mortgage-backed securities 10 times in a row as fast as you can.
A few words of advice: With newcomers to commercial real estate, customers, vendors and colleagues focused on other aspects of the business from you — be patient. Thankfully, most of us are busy and pressed for time as our industry is rebounding, but take the time to explain what you’re talking about if you get a befuddled look.
Educators are vital to the industry, and becoming one can help you in the long run. Customers will likely show gratitude, while newbies might end up considering you a mentor, starting a relationship that could help in the future.
That being said, how may buzzwords can you think of that affect commercial real estate, title insurance and other forms of due diligence? Are there any that took you forever to wrap your brain around?