The Handbook of Commercial Real Estate Investing

State of the Art Standards for Investment Transactions, asset Management, and Financial Reporting

Publication Date	June 2006
Publisher	McGraw-Hill Professional
Product Type	Book
Pages	400
ISBN Number	not applicable
Product Code	MGH00015

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Summary

The Handbook of Commercial Real Estate Investing delivers an authoritative ""best practices"" approach to the three major areas of the industry: investment transactions, asset management, and enterprise management. Skillfully written by John McMahan, a leader of the U.S. commercial real estate investment industry, The Handbook of Commercial Real Estate Investing presents state-of-the-art methods needed to successfully invest in and manage commercial properties such as office buildings, shopping centers, industrial buildings, apartments, and hotels.

Designed to codify the industry ""best practices"" encouraged by financial institutions, The Handbook of Commercial Real Estate Investing offers:

Complete guidelines for the critical ""due diligence"" stage of the investment process
Effective asset management techniques for leasing, property management, and tenant relations
Detailed procedures for reporting to investors on the financial performance of the real estate portfolio
Information on using technology in the ""due diligence"" process
A wealth of sample forms and checklists used in real estate investment
A valuable glossary of real estate investment terms

Authoritative and easy to use, The Handbook of Commercial Real Estate Investing will serve as a valuable strategic guide to managing the overall real estate investment process, as well as a ""best practices"" tool for improving each operating area.

The Handbook of Commercial Real Estate Investing offers a comprehensive ""best practices"" approach to commercial real estate investment, designed to minimize adverse consequences and standardize the real estate investment process.

John McMahan, the veteran real estate investment advisor, expertly demystifies the commercial real estate investment process, describing how values are created and presenting the tools needed to be a successful real estate investor.

The author explains the meaning of ""best practices"" within the context of the real estate industry, and stresses the importance of understanding investor objectives. He also discusses the characteristics of various property types, the fiduciary obligations involved, and post-closing problems to be avoided.

The Handbook of Commercial Real Estate Investing concentrates on best practice standards in the three main areas of commercial real estate: investment transactions, asset management, and enterprise management, providing in-depth coverage of the crucial topics within each area:

Investment Transactions_shows how to perform a complete ""due
Asset Management_examines the application of ""best practices"" in
Enterprise Management-provides a roadmap to critical enterprise growth issues such as building leadership, strategic planning, market positioning, risk management, and corporate governance

A complete, one-stop reference, The Handbook of Commercial Real Estate Investing features two Appendices: one on applying technology to the real estate investment process, particularly due diligence on prospective investment assets; the other containing numerous sample documents associated with real estate investment. This essential resource also includes a handy Glossary of real estate investment terms and a detailed Index for rapid access to discussions of specific issues.

About the Author

John McMahan is a real estate investment manager who founded John McMahan Associates (JMA), a San Francisco-based firm which acquired U.S. real estate for European, Asian, Australian, and Middle Eastern investors. The firm later became McMahan Real Estate Advisors, shifting its focus to investing pension capital in real estate and eventually merging with Mellon Bank to become Mellon/McMahan, with Mr. McMahan as CEO. He also has served as chairman of two public REITS, and for 17 years was a senior lecturer at the Stanford Graduate School of Business and 5 years at the Haas School of Business, UC Berkeley.

Content

Part I: Real Estate Investment Process
- Chapter 1: How Value Is Created in Real Estate
  - Value cycle of real estate
  - How investors participate in the value creation process
  - Role of synergy in creating value
  - Role of location in enhancing value
  - Land use regulation
  - Submarket location factors
  - Property factors
  - Market timing
  - Asset management
- Chapter 2: Market Demand Drivers
  - Economics
  - Technology
  - Demographics
  - Business organizations
  - Physical workplace
  - Workplace location
- Chapter 3: Property Type Characteristics
  - Apartments
  - Retail
  - Office
  - Industrial
  - Hotels
- Chapter 4: Major Players
  - Life insurance companies
  - Foreign investors
  - Real Estate Investment Trusts (REITs)
  - Pension funds
- Chapter 5: Understanding Investor Objectives
  - Pension funds
  - Individual investors
  - Foreign investors
  - Differing investor objectives
  - Reconciling investment focus with portfolio diversification
Part Ii: Transaction Management
- Chapter 6: Sourcing, Screening, and Preliminary Underwriting
  - Property sourcing
  - Property screening
  - Preliminary underwriting
- Chapter 7: Preliminary Approvals and Negotiation
  - Preliminary approvals
  - Negotiations
- Chapter 8: Due Diligence
  - Role of due diligence
  - Managing the process
  - Physical due diligence
  - Legal due diligence
  - Business due diligence
- Chapter 9: Final Underwriting and Closing
  - Final underwriting
  - Final approvals
  - Closing documents
  - Title holding entity
  - Waive and closing
  - Transition to asset management
- Chapter 10: Disposition
  - Targeting buyers
  - Broker selection
  - Listing agreement
  - Confidentiality agreement
  - Offering memorandum
  - Property reports
  - Disposition alternatives
  - Transaction documents
  - Due diligence
  - Transition to buyer's asset management staff
Part Iii: Asset Management
- Chapter 11: Role of Asset Manager
  - The modern asset manager
  - Asset versus property management
  - Asset Manager's responsibilities
- Chapter 12: Role in Investment Transactions
  - Acquisitions
  - Transition to asset management
  - Dispositions
- Chapter 13: Tenant Relations
  - Know the tenant's business
  - Understanding the tenant's financial condition
  - Tenant's view of the building and management
  - Renewing leases
  - New leases
- Chapter 14: Building Operations
  - Maintenance
  - Construction management
  - Security
  - Disaster planning
- Chapter 15: Financial Reporting
  - Financial statements
  - Federal tax reporting
  - Comparative analysis
Part Iv: Enterprise Management
- Chapter 16: Leadership
  - Why has it been so difficult?
  - How real estate is changing
  - What is leadership?
  - Qualities of a good leader
  - How leadership skills can be improved
  - Establishing a nurturing work environment
  - Allow broader participation in decision making
- Chapter 17: Strategic Planning
  - Strategic planning process
  - Evaluating alternatives
  - Formulating the final plan
  - Implementation
  - Summary
- Chapter 18: Market Positioning
  - Identifying the target market
  - Refining the target market
  - Competitive environment
  - Battlefield mapping
  - Proposed fund features
  - A learning process
- Chapter 19: Risk Management
  - Managing risk in a mixed asset portfolio
  - Managing real estate portfolio risks
  - Managing real estate enterprise risks
- Chapter 20: Governance
  - Collapse of Enron
  - Legislative and regulatory reform
  - Reaction to governance reforms: public firms
  - Public real estate companies and corporate governance
  - Board of directors governance guidelines
  - Continuing corporate governance
  - Current situation
Appendix A: Technology and The Due Diligence Process
Appendix B: Legal Documents
Glossary