Commercial Real Estate Development Essay Example | Topics and Well Written Essays - 2500 words

moneymaking(prenominal) Real Estate Development - Essay ExampleThe current trend as indicated in the belatedly published, Estate Gazette Feb 2009 states the impact of the economic downturn which has resulted in very low pent up demand as not many can afford to do so and who did have already traded .Location, layout, storey of building, area, height, storage space, interior decoration and construction framework, possibility to sub lease, inter changeability of formats, ownership distri thoion, availability of utilities, central air conditioning, and the level of management fee. Each of these factors will be elaborated in detail further, which will help in correctly inferring that supply and demand are not the mend factors affecting the mensurate of commercial real estate and its development and regeneration.Business Improvement Districts (BIDs) gained popularity because of rising crimes, acclivitous anti social behavior and the environmental problems. In London this evolved as a quite fresh phenomenon where the formal drive occurred for the first time in April 2001. Earlier almost private were operating already, but then the government announced its very first. Schemes like Town Centre Management had started in 1980s, which were a part of public private partnerships for the benefit of businesses and other stake holders. Since concept of Business Improvement Districts kicked collide with as a similarlyl for financing the revamping of residential neighbor hoods. Later Government in the surroundings Committee of the House of Commons took up a project termed as town improvement zones, this was a bold move for the regeneration of inner city areas. Then in December 2001, further regard in these kind of zones was given Labour Governments white paper Strong Leadership Quality semipublic Services and this was in reality the first step towards urban regeneration policy. In 2003 examen was started with some areas - towns and cities, labeled as pilot locations , aimed at discovering the methodology to be adopted in making a Business Improvement District scheme a success process and experience for managing and evaluating. Following this testing stage, government passed a resolution in 2004. As earlier mentioned, possibility of sub lease affects the value of a commercial real estate development which will now be further elaborated. Since restrictions on sub leasing affects the flexibility of further renting out a property and thus hugely affects. Since there are two sources of return from property - one, the savings that comes in the form of opportunity cost too and another from the rental income that is earned when property is given to be utilized by someone else. And remote other assets, since property does not depreciate but there is always a hope of electric potential development and there is always a risk and return that is uncertain how these returns will move in future. All developers and investors base their decisions on number o f factors - current income and future return generation capacity. Leasing patterns have a great impact on the development and regeneration of the commercial real estate. This is visible from the 1989 UKs market chisel in which tended to change the relationship that earlier governed between landlords and business tenants (Estates Gazette). Earlier it was