ANCILLARY INCOME IN COMMERCIAL REAL ESTATE
Hope everyone is having a better day that yesterday, and separately, that rates to continue to drop.
What are creative/non-conventional and conventional forms of ancillary income that (or should/will) exist in commercial real estate?
-- Thanks all
Based on the most helpful WSO content, here are some creative and conventional forms of ancillary income in commercial real estate:
Creative/Non-Conventional Forms:
Conventional Forms:
These strategies can help maximize the income potential of commercial real estate properties.
Sources: Value creation in different RE property types, What is Your ADDITIONAL Reason to invest in Multi-Family?, CRE Trends That Are Emerging Now and Will Prevail Throughout Our Careers, How will the next billionaires in real estate earn their fortunes?, Best Amenities / Other Income Sources that You've Seen (Multifamily)?
How is this post remotely down-votable, wild
Whining about internet points is so lame. Have another one, nerd.
1. parking income
2. signage income
3. advertising board income (pattison, etc.)
4. admin fee income (not really considered auxiliary but you will find this typically under recovery revenues)
5. cell tower income
I think that covers about 90% of the deals - I'm probably missing a few.
Thanks for a coherent/relevant response but I would list that at 60%.
For example, offering avenue facing exterior walls to companies to project ads. There is a slew of randomn shit
Keep em coming little guys
In MF you will see pet fees (monthly charge to have a pet live with you) as well as storage income (small cubicles rented out to store bikes, tools, misc items, etc). In parking you can also get some ancillary income from EV charging stations. I have also heard of co-working spaces like study rooms and conference rooms in MF/office rented out to freelancers on a very short-term basis.
1) Adding some kind of administrative fee on top of reimbursable expenses.
2) Having pro rata tax reimbursements exceeding 100% of the actual bill. E.g., have a tenant agree to cover 12-13% of the tax bill when their actual pro rata share is closer to 10%. I’ve seen some owners getting reimbursed like ~120% of taxes in a fully occupied building.
3) Charging for square footage that doesn’t actually exist. Maybe this is just an NYC thing.
4) Charging a property management fee on a NNN lease.
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