From the course: Introduction to Commercial Real Estate Analysis

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Overview of operating assets

Overview of operating assets

From the course: Introduction to Commercial Real Estate Analysis

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Overview of operating assets

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- [Instructor] Hey, welcome to this section. In this section we are going to talk about a few of the specialty assets or operating assets as well. This group tends to involve real estate plus operations. So it does add some complexity, because you not only need to understand it from the economics of doing the real estate deal itself, you need to understand the operations of the specific type of business that might run on that real estate. But, first, these deals still all need to start with good real estate, right? So that includes location, getting it at a good cost basis, they're located in a place where the market dynamics support long-term growth. Good Operations Follow. So things like having expertise in that particular type of business model and being able to operate it or finding a partner who does have that expertise to do that, controlling the cash flows, optimizing it and ultimately getting a good exit cap on the operations. Right, so some examples of these specialty assets…

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