The last type of rate, the commercial rates, the type that owns offices and other large premises, which are then rented out to commercial organizations. Amongst all the other reads, commercial reads are the ones that have rewarded me with the most returns, and I'm going to teach you how to select the best of them. On to asset pointers, exceptional commercial reads own buildings that are special in their own way. For one thing, they can offer various office size options to tenants. This is made possible by the highly efficient floor plates and partitions that allow for maximization of floor areas. Their buildings are also well equipped with facilities and systems that enhance the security and well being of the tenants employees.

Looking back at Suntech reads, we can see their office towers fit A description of what an exceptional commercial read will typically hold. Suntech reads office towers are well equipped with backup generators, adequate parking spaces around the clock, advanced security systems and lifestyle facilities such as tennis courts and swimming pools. The employees must be truly lucky to work there. Another point that makes an office building special is the technology that goes into it. Exceptional commercial rates tend to embrace green technology in their buildings, such as using heat minimizing facades and water saving distribution systems were possible, not only foster a healthier, more comfortable working environments, but also save on operating costs over the long run. The point of me telling you all this is when you look at any commercial real property portfolio, you should look out for those special factors that make an office building desirable to tenants and the employees working there.

As for location pointers, there is only one simple point to make. Stick to reads that have buildings located in prime business areas. commercial buildings in such prominent places of business and finance will act like a magnet that continues to draw in mn C's and fortune 500 companies. Moreover, being in a prime business area would make it easier to market commercial spaces to these large companies. But what makes a business area prime number one, a prime business area is one where it is easy to conduct business where there is sturdy government supports a low corporate tax rate, low prevalence of corruption and strong enforcement of laws. I specifically underlined the strong enforcement of loss because of a serious challenge to the commercial reads currently face which is the widespread misuse of industrial space corporate And business tenants are supposed to establish their offices in commercial buildings.

But many have found the means to relocate into industrial spaces just to keep costs low. If a country's government doesn't work together with both the industrial and commercial sectors to update enforce laws regarding proper segregation and Authorization for Use of space, then your office read will lose its competitive edge. Number two, presence of excellent transportation and communication systems as well as access to quality health care. Number three, Parks cafes, restaurants, a variety of useful shops and entertainment options are available, similar to the point made on picking exceptional retail rates. And number four, access to a wide pool of young professionals and skilled labor so as to keep the cost of human capital low. All these considerations are the crux of doing proper locational due diligence on commercial reads, especially if the commercial route you're currently holding or looking at plans to acquire a new building in a city that you may be unfamiliar with.

Great on to management pointers. Now that you have a well equipped building located in a prime area and all set up for success. With so much effort and consideration going into the property, the ideal is to rent out these offices to tenants with equally respectable reputations and financial prowess, right. Exceptional commercial reads think along the same lines. Not only will they vet through the tenants before renting out their office spaces, they will also diversify them. How then, do we tell whether a commercial read vets and diversifies their tenants?

You should know the answer by now. simply look at the annual ports or their website, search for tenant portfolios or tenant composition charts, which will give you information on who they rent out to, as well as how diversified their tenant base is. similarly to how you select exceptional industrial reads, great commercial reads also have attract and retain tenant policies in place. Examples of these policies include one conducting regular dialogue tenants to better understand their key business needs to giving out small treats during festive seasons to the light tenants employees. Three planning events and activities to increase their green awareness and creating opportunities for networking for having additional services in place such as providing umbrella during rainy days, in addition, do take a look at the history of tenant retention rates, as this will quickly tell you whether the management is core actively keeping tenants happy and meeting their expectations.

Other than the issue with managing tenants, the management of an exceptional commercial reads are also aware of the rental cycle of commercial buildings in key business cities in which they have invested and will manage the reads commercial buildings accordingly. Look at the quarterly reports that the read issues. If you see something like this chart in their reports, it is a clear sign that the management is keenly aware of the cycle and has a plan in place to strategically buy or sell commercial buildings. And there you have it lifts around off this lecture with a checklist for picking exceptional commercial rates.