Tags |
|
|
Links |
|
|
Just Answers - The #1 Prerequisite Piece of the Commercial Real Estate Puzzle
As a commercial real estate investor, you're spending large amounts of capital to buy property, either to hold it and turn it into a revenue stream, or to upgrade it and re-sell it on the market to make a quick cash out. And with anything involvi
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ng large amounts of money, there are two words of critical importance: Due Diligence.
Due diligence when it comes to acquiring commercial properties means checking out the comps – the comparisons of how similar properties compare to the one you'
Due diligence when it comes to acquiring commercial properties means checking out the comps – the comparisons of how similar properties compare to the one you'
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
e about to acquire. You want to look at the actual sales terms, and sales conditions for a comparable piece of property, either improved or unimproved, and make a ruthless, cold hearted assessment on the property you're considering. You can't re
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ally rely on asking price – there's always some dickering going on for that. You do need to look at what the property actually sold for.
When looking at comparable properties, there are three things to assess, recency, relevance and proximity.
When looking at comparable properties, there are three things to assess, recency, relevance and proximity.
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ecency is, bluntly, how recently the property sold. Market conditions fluctuate on seasonal and multi-year bases, particularly as new job sources open (or, sadly, shut down). Make sure that you're cognizant of all the factors that influence a re
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
cent sale when assessing how recent a sale was.
Relevance or similarity means you're comparing apples to apples, not apples to watermelons. If you're looking to gauge the risk, try and find the closest equivalent property that sold – if you're l
Relevance or similarity means you're comparing apples to apples, not apples to watermelons. If you're looking to gauge the risk, try and find the closest equivalent property that sold – if you're l
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
oking at a 50 acre property, you're going to want to look for sales prices for 40 to 60 acre properties that have sold recently. If your property has particular improvements (buildings, swimming pools, office space), you should look for propertie
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
s with similar improvements, and try to work out the differential rate in the sale price (how much for the land, how much for the location and how much for the improvements) to make a good itemized assessment of the property you're considering.
P
P
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
oximity means how close the comps are to each other, and how close they are to the property you're considering. Properties that are close together tend to have similar sale values, and you (as a commercial real estate investor) should be looking
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
at aggregate and median sale prices in the region you're considering. Build a map and use highlighters to show what prices are commended where, by what market forces.
Now, some risk is always present in investment, even in real estate. (Or, wit
Now, some risk is always present in investment, even in real estate. (Or, wit
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
the current housing market, almost universally in real estate.) Let's analyze the risks and show how comps help you avoid them.
The first risk is "falling in love with a property". It's OK to fall in love with a property you're going to live o
The first risk is "falling in love with a property". It's OK to fall in love with a property you're going to live o
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
, or give to someone as a gift. Falling in love with a piece of commercial real estate is just plain foolish. You'll pay more for it, and get less out of it when you have to sell it. Comps give you a reason to step back from the property, and a
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
sk yourself the hard questions – how does the asking price compare to comparable properties? What's the local average for this type of property with these types of improvements?
The second great risk of not checking your comps is being unaware of
The second great risk of not checking your comps is being unaware of
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
what the market expects in a property. Now, this doesn't mean that you shouldn't buy a commercial property if it lacks a certain feature, or is dissimilar to recent commercial properties that have gone through the marketplace recently, but it doe
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
s mean you need to be aware of the differences, and be prepared to accommodate them. For example, if all the commercial apartments that've sold recently had had swimming pools, and one you're looking to acquire does not, you should be able to get
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
that prospective property at a discount, to cover the fact that you'll need a swimming pool on it to remain competitive.
Finally, the last risk you avoid by checking your comps is proximity. Three things are key to real estate – location, locati
Finally, the last risk you avoid by checking your comps is proximity. Three things are key to real estate – location, locati
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
on and location. Comps let you assess what properties are "buy and re-sell" in anticipation of shifting demographics, and which ones are buy-and-hold. For example, if you know an employer is adding a lot of high end jobs in the next few years, b
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ying properties near where that employer is setting up shop and upgrading apartments is a sound investment – but you need to be aware of the proximity to where that employer's facilities will be, and be able to provide good market value, possibly
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
even condominium conversions.
Ultimately, checking comps is all about doing your homework, and making the commercial real estate acquisition process work for you. Don’t fall in love with a piece of property, and do look at all the ramifications
Ultimately, checking comps is all about doing your homework, and making the commercial real estate acquisition process work for you. Don’t fall in love with a piece of property, and do look at all the ramifications
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ith a dedicated, heartless, profit and loss perspective. Check your comparable properties carefully and make fully informed decisions, and your commercial real estate investments will be a much happier experience for you and your fellow investors
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.justanswers.org.ua/article/101492/justanswers-The-1-Prerequisite-Piece-of-the-Commercial-Real-Estate-Puzzle.html">The #1 Prerequisite Piece of the Commercial Real Estate Puzzle</a>
BB link (for phorums):
[url=http://www.justanswers.org.ua/article/101492/justanswers-The-1-Prerequisite-Piece-of-the-Commercial-Real-Estate-Puzzle.html]The #1 Prerequisite Piece of the Commercial Real Estate Puzzle[/url]
Related Articles:
6 Good Reasons For Writing An eBook
Bookmark it:
|