Sunday, November 12

What is Project Management in Commercial Real Estate?

What is real Estate?

Real Estate is the land & any permanent improvements attached to it It is different from Commercial Real Estate. It can be natural or artificial. Real Estate includes water, trees, minerals, buildings, homes, fences, and bridges.

Personal Property is a property that is not permanently attached to the land. Examples of personal Property include vehicles, boats, jewelry, furniture, and farm equipment.

● Real Estate is real land that includes the Property and anything permanently attached to it.
● There are five main types of real estate: residential, commercial, industrial, land, and others.
● You can invest in real estate by purchasing a home, rental land, or other lands. Or you can also invest indirectly through a real estate investment trust (REIT).

Folks usually mix the terms land, real estate, and Real Property, but they are different. The area is the earth and surface, including the trees, minerals, and water. Real Estate is the land, plus any permanent artificial additions, such as houses and other buildings. Real Property is the interests, advantages, and rights intrinsic in the responsibility for the land.

Real Property includes the surface of the land. It also has what lies above and below the earth. It should not be mixed with personal Property. Personal Property does not fit the definition of real property. The main feature of personal Property is that it is movable.

What is commercial real Estate?

Commercial Real Estate (CRE) is land used exclusively for business purposes. It provides a workspace rather than a living space. Most often, It is rented to tenants to do business. Commercial real estate ranges from a single gas station to a huge shopping center. Commercial Real Estate includes:

● Retailers of all kinds
● Office space
● Hotels
● Strip malls
● Restaurants
● Convenience stores

Commercial Real Estate is the land used solely for business purposes. Whereas, residential real estate, is living space. This type of real Estate provides income, as well as some capital gain, for investors. Investing in it needs extra awareness and funds from investors. These funds are more than other real estate funds. Publicly traded REITs are a feasible way for individuals to invest in commercial real estate.

Types of commercial real Estate

1. Multifamily
2. Office
3. Industrial
4. Retail
5. Hotels
6. Mixed-Use
7. Land
8. Special Purpose

What is project management?

Project management is the application of;
● Processes
● Methods
● Skills
● Knowledge
● Experience to achieve specific project objectives

Project management has final deliverables that are constrained to a fixed period and budget. Project management has final deliverables and a finite period. While on the other hand, Management is an ongoing process. Because of these, a project professional needs a wide range of skills, knowledge, and experience.

What is project management in commercial real Estate?

Commercial real estate consists of two categories of real estate. Residential real estate includes structures reserved for human habitation. Some zoning and licensing authorities further divide industrial properties. Commercial real estate is divided into four classes, depending on function:
● Office,
● Industrial,
● Multifamily, and
● Retail

1. Phases of Project Management:

● Conception and Initiation
● Definition and Planning
● Launch and Execution
● Performance and Control
● Project Close

2. Role of Project Management in Commercial Real Estate:

The role of project management in commercial real estate and construction projects may vary from one project to another—a project manager’s responsibility to ensure an on-time and on-budget result.
Before the beginning of the construction, the manager of the project is responsible for:

● Site selection and due diligence
● Securing zoning and entitlements
● Selecting project team members
● Creating a schedule and budget

These have things that will lay the foundation for the rest of the project. Once the project is under progress, the project manager is the representative of the owner on-site. The project manager’s job is to ensure the project is built according to the owner’s specifications. As the undertaking advances from planning to execution, the project supervisor will move their concentration to
1. Scheduling contractors,
2. Processing payments, and

3. Managing change orders.
Some organizations seek a team of many managers with different experiences. Project responsibilities may go in for a singular project manager. Construction and real estate projects require the experienced managers who have complete knowledge about:

1. The real estate and construction process,
2. Recent and relevant experience
3. The ability to work in teams.

Professionals must have excellent interpersonal and communication skills. So, that they can make tough decisions for the smooth execution and completion of any construction project, project managers need to understand how to handle the different stages of the project.

A project supervisor’s job during the land and development project is to guarantee the task’s practical fruition:

● On-time,
● Within budget.

The project scope, size, and location may change. But one thing is consistent; ensuring the timely and cost-effective completion of projects. Hence, project management plays a vital role in commercial real estate.

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