From the course: Introduction to Commercial Real Estate Analysis

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Deal states

Deal states

From the course: Introduction to Commercial Real Estate Analysis

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Deal states

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- [Narrator] In this lecture we're going to explore some of the asset states for the investment deals. Basically, for any given property, it might be in a different state at the time an investor might be looking at it. So, depending on what state it's in, the entire nature of the investment might look very different. So, let's look at what these states are. First is a finished product. Now, this is something that is already built, there's little to no renovation that's needed, there are existing tenants who have good credit in there that's already leasing the space. They're on very long term leases. The lease schedule, rent bump schedule, is well known. This tends to be part of the core investment play, and the investment returns generally are a little bit lower here than in the other categories. So, for here, basically, you have something that's already built, already done, and it's relatively new, it doesn't really require any kind of renovation at all. So, for that, you know, we're…

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