Analysis on the Commercial Real Estate Business in Gold Coast By Karl Gyourko, phd scholar Griffith University March 2018 Key Terms: Real Estate, Commercial Property, Real Estate Trends, Real Estate Economics Abstract: Commercial real estate is property...
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Analysis on the Commercial Real Estate Business in Gold Coast By Karl Gyourko, phd scholar Griffith University March 2018 Key Terms: Real Estate, Commercial Property, Real Estate Trends, Real Estate Economics Abstract: Commercial real estate is property that is used specially for business purposes and that is leased out to provide a workspace rather than a living space. A good rule of thumb in business is that a deal isn t always a deal. This is specifically true with commercial real estate, an area where business owners may only have limited understanding or experience. Ranging from a single gas station to a huge shopping center, commercial real estate includes retailers of all kinds, office space, hotels, strip malls, restaurants and convenience stores. Commercial real estate capital structure looks to be quite weak due to high leverage combined with strong mean reversion in prices. The aggregate loan-to-value ratio on income-producing properties is about 75%. Estimated mean reversio
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