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Tag Archive: we are the experts

  1. Did you know…Commercial real estate often outperforms the stock market over the long term?

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    Did you know commercial real estate often outperforms the stock market over the long term?

    Since real estate properties are tangible assets, they are inherently less risky than stocks and better equipped to weather economic downturns. Because of these factors, according to MorningStar, tangible assets like real estate have outperformed the Standard & Poor’s 500 (the stock market of the 500 largest companies in America) for the past 30 years (Due.com, n.d.).

    While both stock and real estate investing have their pros and cons, purchasing real estate can provide more stable returns and offer tax advantages. In fact, a Gallup poll from 2023 found that 34% of Americans think real estate is the best long-term investment, while only 18% say the same of stocks and mutual funds (Asis, 2023).

    Are you interested in getting started in commercial real estate? Check out a few Black Diamond Realty investment properties that would be a great addition to any investment portfolio below.

    West Virginia Investment Offerings:

    3313 4H Camp Road is a fully leased investment opportunity located along tranquil Booth Creek outside city limits in Morgantown. Originally built as a single-family residence, the property has since been redeveloped as a drug rehabilitation center and is fully leased to long -term tenant, Ascension Recovery Services.
    View the detailed marketing flyer for 3313 4H Camp Road

    900 Fairmont Road is a fully leased office investment opportunity in Morgantown. The property is conveniently located inside Morgantown and Westover city limits and within two miles of WVU’s downtown campus. The property is fully leased by Wise Path Recovery Centers.
    View the detailed marketing flyer for 900 Fairmont Road

    32 Baird Street is an impressive 12-unit student housing asset with one office at the doorstep to West Virginia University’s Downtown Campus. This turn-key, recently upgraded asset offers attractive in-unit amenities including a washer-dryer, patio/deck area, oversized closets, keyless entry doors and granite countertops.
    View the detailed marketing flyer for 32 Baird Street.

    300 Scott Avenue – This portfolio of four buildings on Scott Avenue in Morgantown includes a total of 22,122 (+/-) square feet of space outside of city limits. Three of the buildings consist of office space, and one is an 8-unit multifamily building.
    View the detailed marketing flyer for 300 Scott Avenue.

    705 Greenbag Road is a fully leased, two-story office building comprised of 3,020 (+/-) square feet. Currently occupied by Apex Physical Therapy, the property comes with a 15-year seller sale leaseback, ensuring long-term stability. The property is located outside the city limits of Morgantown roughly 2.9 miles from I-68, Exit 4 and 2.8 miles to downtown Morgantown and West Virginia University’s main campus.
    View the detailed marketing flyer for 705 Greenbag Road.

    440, 442 Williamsport Pike is a turn-key car wash located in a high-traffic area of rapidly growing Martinsburg, WV. Excellent visibility at the intersection of Routes 9 and 11 and prominent signage make this 7,667 (+/-) square foot offering a perfect generational investment or prime redevelopment opportunity for the right buyer.
    View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    213 Lincoln Street is a multifamily investment opportunity in Grafton that offers a total of five separate apartments across one 4,301 (+/-) square foot home. All units are fully leased, and off-street parking is available.
    View the detailed marketing flyer f0r 213 Lincoln Street.

    18 Cleveland Avenue is conveniently located within walking distance to WVU’s main campus and close to many Morgantown amenities. All 5 units are currently leased, including a warehouse/industrial/office space of 3,408 (+/-) square feet currently leased by the landlord. 18 Cleveland Avenue would make a great addition to an investment portfolio.
    View the detailed marketing flyer f0r 213 Lincoln Street.

    511 Grant Avenue is a two-story, seven-unit multifamily building grossing 9,120 square feet on 0.138 (+/-) acre. Each unit is approximately 800 (+/-) square feet. This offering is in an ideal location in downtown Morgantown and in the heart of WVU’s main campus.
    View the detailed marketing flyer for 511 Grant Avenue.

    200 West Creek Village is a mobile home investment opportunity in Morgantown is comprised of a 24-lot mobile home park on 12.88 acres. This property is conveniently and strategically located just a short drive from major routes, including Route 7 and I-68, and within close proximity to Sabraton-area shopping, downtown Morgantown, and WVU’s main campus.
    View the detailed marketing flyer for 200 West Creek Village.

     

    Pennsylvania Investment Offerings:

    100 Ridgeview Drive is comprised of one 10,800 (+/-) square foot multi-tenant building on 5.08 (+/-) acres. It includes six units, with three available for lease. This is a great opportunity for a commercial investor looking for property in a well-trafficked, easily accessible location or a business looking to lease a space in a developing, commercial area.
    View the detailed marketing flyer for 100 Ridgeview Drive.

    1023 Pittsburgh Street in Uniontown, PA includes two single-story office buildings on 3.76 acres. The buildings are comprised of 30,000 (+/-) square feet, 12,000 (+/-) square feet in Building 1 and 18,000 (+/-) square feet in Building 2. Features of this investment property include two off-street parking lots and a 24-hour emergency call system with central monitoring.
    View the detailed marketing flyer for 1023 Pittsburgh Street.

    1264 Pittsburgh Street is an investment opportunity in Uniontown, PA featuring a multi-tenant building, office space, and an auto sales car lot on nearly two acres. The property features expansive road frontage and an easily accessible paved parking lot.
    View the detailed marketing flyer for 1264, 1266, 1268 Pittsburgh Street.

     

     

    References

    Asis, A. (2023, November 23). Real estate vs. stocks: Which has higher returns? US News. Retrieved September 24, 2024, from https://money.usnews.com/investing/articles/real-estate-vs-stocks-which-has-higher-returns

    Due.com. (n.d.). Real assets outperform S&P 500 consistently. Nasdaq. https://www.nasdaq.com/articles/real-assets-outperform-sp-500-consistently

  2. Did you know…Your commercial property may need to be ADA Compliant?

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    Did you know your commercial property may need to be ADA Compliant?

    Almost all businesses that serve the public must comply with ADA guidelines for accessibility. This includes everything from restaurants and hotels to doctors’ offices and day care centers.

    Commercial facilities like office buildings, warehouses, and factories need to comply with the requirements of the ADA Standards for Accessible Design. The ADA Standards for Accessible Design are minimum requirements set in 2010 that must be met by commercial facilities “to be readily accessible to and usable by individuals with disabilities” (2010 ADA Standards for Accessible Design, 2010).

    Two categories that have exemptions from accessibility standards are religious organizations and private clubs.

    The following resources can help you understand more about the ADA and how it pertains to commercial real estate and ways to find out if your property needs to be ADA complaint.

    Resources
    https://www.ada.gov/topics/intro-to-ada/

    https://www.adachecklist.org/doc/fullchecklist/ada-checklist.pdf

    https://www.lexisnexis.com/community/insights/legal/practical-guidance-journal/b/pa/posts/americans-with-disabilities-act-guidance-for-commercial-real-estate-owners?srsltid=AfmBOopY1ckvrLUKOhbKstwp3Yikq-c8M8TegfBGb7k6CklkDCx6Wwy3

     

    References
    2010 ADA Standards for Accessible Design. (2010, September 15). ADA.gov. https://www.ada.gov/law-and-regs/design-standards/2010-stds/
    Businesses that are open to the public. (2024, September 16). ADA.gov. https://www.ada.gov/topics/title-iii/

     

  3. Did you know…A higher cap rate can indicate a potentially higher return on investment?

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    Did you know a higher cap rate can indicate a potentially higher return on investment?

    In commercial real estate, cap rate, short for capitalization rate, is used to estimate the potential return an investor will make on a property. The formula for calculating cap rate is:

    NOI (Net Operating Income)/Asset Value

    A higher cap rate implies a higher return on investment on a property in comparison to a similar investment – but a higher cap rate also carries more risk (DiLallo, 2024).

    A property with a lower cap rate can mean lower potential returns but is also more stable and less risky. If an investor has a higher tolerance for risk and seeks the highest possible profits, they will want to target a high cap rate (Rafter, 2024).

    A few things to remember about cap rates:

    What is considered a “good” cap rate is subjective and dependent of a variety of factors – but, in general, there is agreement that a cap rate of 5-10% is healthy (Cap Rate 101: Definition, Calculation & Good Cap Rate Factors, 2022).

    According to the Commercial Market Insights Report by the National Association of Realtors, as of January 2023, the following were the national average cap rates by property sector: Multifamily: 4.9%, Office: 6.9%, Industrial: 6.2%, and Retail: 6.7% (DiLallo, 2024).

    Cap rate is most useful for determining if one real estate investment is worthwhile compared to other investments and for decision-making is best used in conjunction with other tools.


    Featured Properties: 

    705 Greenbag Road is a fully leased, two-story office building comprised of 3,020 (+/-) square feet. Currently occupied by Apex Physical Therapy, the property comes with a 15-year seller sale leaseback, ensuring long-term stability. The property is located outside the city limits of Morgantown roughly 2.9 miles from I-68, Exit 4 and 2.8 miles to downtown Morgantown and West Virginia University’s main campus. Cap Rate: 7.79%. View the detailed marketing flyer for 705 Greenbag Road

    900 Fairmont Road is a fully leased, two-story office building comprised of 10,200 (+/-) square feet. The building is currently occupied by Wise Path Recovery Centers (managed by Ascension Acquisition LLC). The property is located inside the city limits of Morgantown and Westover, situated 2 miles of West Virginia University’s Downtown Campus, shopping and more. Cap Rate: 6.79%. View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    440, 442 Williamsport Pike is a turn-key car wash located in a high-traffic area of rapidly growing Martinsburg, WV. Excellent visibility at the intersection of Routes 9 and 11 and prominent signage make this 7,667 (+/-) square foot offering a perfect generational investment or prime redevelopment opportunity for the right buyer. As-Is Cap Rate: 9.61%.  View the detailed marketing flyer f0r 440, 442 Williamsport Pike.

    1023 Pittsburgh Street in Uniontown, PA includes two single-story office buildings on 3.76 acres. The buildings are comprised of 30,000 (+/-) square feet, 12,000 (+/-) square feet in Building 1 and 18,000 (+/-) square feet in Building 2. Features of this investment property include two off-street parking lots and a 24-hour emergency call system with central monitoring. Cap Rate: 9.31%. View the detailed marketing flyer for 1023 Pittsburgh Street.

    32 Baird Street is an impressive 13-unit student housing asset at the doorstep to West Virginia University’s Downtown Campus. This turn-key, recently upgraded asset offers attractive in-unit amenities including a washer-dryer, patio/deck area, oversized closets, keyless entry doors and granite countertops. Cap Rate: 7.4%. View the detailed marketing flyer for 32 Baird Street.

     

     

    References
    Cap Rate 101: Definition, Calculation & Good cap Rate Factors. (2022, June 9). Commercial 1 Brokers. https://commercialonebrokers.com/what-is-capitalization-rate-1/.
    DiLallo, M. (2024, April 5). Capitalization rate: Everything you need to know. The Motley Fool. https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/basics/capitalization-rate.
    Rafter, D. (2024, July 2). Cap rate: What is it and how is it calculated? Quicken Loans. https://www.quickenloans.com/learn/capitalization-rate

     

     

     

     

     

     

     

     

     

  4. Did you know…There are three classifications of office buildings?

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    Did you know…There are three classifications of office buildings?

    Class A, Class B, and Class C are three classifications of commercial office buildings. The classifications are based on quality, condition, location, price, and amenities (Hamann, 2024). Class A, B, and C commercial office building classifications are considered subjective as price and availability of real estate varies by geographic location. For example, a Class A building in a suburb might be considered a Class B building in a city. Generally, characteristics of the three classes include:

    Class A – Class A properties are regularly the newest in their market. These buildings are characterized by high-quality construction and have the most up-to-date features and in-demand amenities. Class A office buildings often attract professional tenants like law firms and can be the most expensive (Hamann, 2024).

    Class B – Class B buildings are typically at least 10 – 20 years old and fall in the middle range in terms of quality of location and amenities. These buildings may not boast a prime location or top-of-the-line amenities but are well-maintained and functional (Tross, 2024).

    Class C – Class C office buildings are often at least 20 years or older and may need repair. The tenants of Class C buildings are more likely to be small and family-run businesses in smaller markets. While Class C buildings may be less desirable aesthetically, the rent is usually lower.

    Here are a few Black Diamond Realty’s office offerings and their features and amenities:

    315 High Street – 315 High Street is a two-story office building located in the heart of downtown Morgantown. The 9,240 (+/-) square foot building boasts a prime Morgantown location with high foot traffic, off-street parking, storage space, and proximity to many popular Morgantown amenities including WVU’s main campus. Learn more about 315 High Street.

    2004 White Willow Way – This 4,000 (+/-) square foot office space is in a great location with excellent visibility and frontage along Point Marion Road in Morgantown. The suite features a reception/waiting room, four private offices, two open office areas, one conference room, a large file/storage room, and off-street parking. Learn more about 2004 White Willow Way.

    1000 Technology Drive – Located within the I-79 High Technology Park in Fairmont, 1000 Technology Drive offers multiple office suites ranging in sizes form 1,090 (+/-) to 4,888 (+/-) square feet. The office suites feature top-of-the-line amenities including high security, free parking, a fitness center with group fitness classes, a large outdoor courtyard, and more. Learn more about 1000 Technology Drive.

    45 Professional Place – Located in White Oaks Business Park in Bridgeport, 45 Professional Place’s available suite offers a reception area, large open office/work room, conference room, storage closet, and ample parking. White Oaks Business Park is a modern, campus style business park conveniently located adjacent to West Virginia’s growing I-79 corridor. Learn more about 45 Professional Place.

    Cambridge Place – Also in Bridgeport, Cambridge Place Office Park offers premier office suites in a pristine setting. The office park, located off Thompson Drive, features high end finishes, manicured landscaping, convenient parking, and on-site management. Learn more about Cambridge Place.

     

    References

    Hamann, J. (2024, March 12). Class A, B, and C office buildings in commercial real estate. Commercial Real Estate Loans. https://www.commercialrealestate.loans/commercial-real-estate-glossary/building-classes/
    Tross, K. (2024, July 12). Class A vs Class B Office Buildings: Understanding the Key Differences. VTS. https://www.vts.com/blog/the-3-office-buildings-classes-what-do-they-really-mean

     

     

     

     

     

     

     

     

     

     

     

  5. Did you know…Conducting thorough due diligence before investing in commercial real estate can reduce risk

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    Did you know…Conducting thorough due diligence before deciding to invest in a commercial real estate property can reduce risk and help the investor avoid mistakes and evaluate their bottom line.

    Generally, due diligence in commercial real estate refers to the research, investigation, and assessment stage that occurs before purchasing or investing in a commercial property. Due diligence helps the potential investor identify risks involved with the investment and allows the investor to make the most informed decision possible. The most common factors to consider in the process are the property’s physical condition, environmental risks, zoning laws, financials, tenant leases, and the seller’s background (Junaid, 2024).

    There are many websites where investors can find due diligence checklists. The checklists all vary slightly, but, in general, a commercial real estate due diligence checklist may include:

    General

    • Physical inspections of the property
    • Obtain site plan / survey
    • Obtain property history of capital improvements
    • Reiew environmental reports

    Financial

    • Obtain most recent property tax returns
    • Review leases
    • Review rent roll and tenant history
    • Review utility bills and other property expenses

     Legal

    • Title report
    • Obtain Certificates of Occupancy, any appraisals, and all relevant contracts
    • Insurance quote
    • Zoning information, approvals, and permits
    • Licenses and warranties
    • Property management matters


    We are the experts in commercial real estate, to speak to a specialized Associate, call 304.413.4350. Click HERE to visit us online.

    Resources for Due Diligence Checklists:
    https://propertymetrics.com/real-estate-due-diligence-checklist/
    https://safetyculture.com/checklists/real-estate-due-diligence/
    https://www.tylercauble.com/blog/commercia-real-estate-due-diligence#checklist

    References:
    Junaid, J. (2024, February 16). How to conduct a due diligence for commercial real estate. Property Management Blog | SnapInspect. https://blog.snapinspect.com/how-to-conduct-a-due-diligence-for-commercial-real-estate/

     

     

     

     

     

     

     

     

     

  6. Did you know…Triple Net (NNN) leases can provide steady, hassle-free income for property owners

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    Did you know Triple Net (NNN) leases can provide steady, hassle-free income for property owners?

    A triple net lease, or NNN, is a common type of lease agreement in commercial real estate. With a triple net lease, the tenant pays all expenses, like building insurance, real estate taxes, and maintenance, in addition to rent and utilities (Chen, 2024).

    With tenants responsible for expenses, investors benefit by limiting expenses and realizing nearly all the revenue (minus income taxes and debt payments).  Triple net lease investment properties can provide reliable income for an investor without the burden of property management.

    Below is a list of Black Diamond Realty NNN Properties:

    Office/Retail/Restaurant
    5000 NASA Blvd: Office | 1,622 – 15,000+ SQ FT Available | 9 Suites  View Marketing flyer
    50 Middletown Loop, Suite 200: Office/Retail | 6,200 SQ FT | 1 Suite  View Marketing Flyer
    1000 Technology Drive: Office | 1,090 – 4,888 SQ FT Available | 9 Suites  View Marketing Flyer
    430 Drummond Street: Office | 2,100 – 6,000 SQ FT Available | 2 Suites  View Marketing Flyer
    1111 Van Voorhis Road: Office Building | 7,000 SQ FT | 1 Suite  View Marketing Flyer
    699 Burroughs Street: Office Building | 5,800 SQ FT | Two-story office building  View Marketing Flyer
    1451 Earl L. Core Road, Suite 2: Office/Retail | 5,320 SQ FT | 1 Suite  View Marketing Flyer
    45 Professional Place: Office | 3,114 SQ FT | 1 Suite  View Marketing Flyer
    311 Medical Court: Office | 1,010 – 1,300 SQ FT | 2 Units  View Marketing Flyer
    1189 Pineview Drive: Office: 3,050 SQ FT | 1 Suite (spread across 3 floors)  View Marketing Flyer
    635 Pittsburgh Street: Office/Retail | 6,880 SQ FT  View Marketing Flyer
    2 Highland Park Drive: Office | 3,400 SQ FT | 1 Suite  View Marketing Flyer
    223 Everhart Drive: Office Building | 7,200 SQ FT | Three floor office building  View Marketing Flyer
    1370 University Avenue: Office/Retail/Restaurant: 1,536 SQ FT (restaurant space), 9,011 SQ FT (retail/office space) View Marketing Flyer
    215 Don Knotts Blvd: Restaurant Space | 4,625 SQ FT  View Marketing Flyer
    4922 Williamsport Pike: Retail/Restaurant: 7,000 SQ FT | building sectioned into three parts  View Marketing Flyer

    Industrial/Flex/Warehouse
    209 Venture Drive: Retail/Flex/Warehouse | 2,400 SQ FT  View Marketing Flyer
    56 Distributor Drive: Industrial Warehouse/Office Building | (total) 28,450 SQ FT  View Marketing Flyer
    255 South Plant Street: Flex Industrial Building | 21,800 SQ FT  View Marketing Flyer
    1700 Grafton Road: Industrial Building | (individual bay size) 2,400 SQ FT | 5 bays  View Marketing Flyer
    13, 15, 17 Excavation Lane: Industrial | (total) 7,500 SQ FT | can be divided into three spaces  View Marketing Flyer
    624 Armory Road: Industrial | 72,000 SQ FT  View Marketing Flyer
    5671 Benedum Drive: Flex/Industrial/Land | 26,240 SQ FT  View Marketing Flyer
    123 Turkey Run: Industrial | 2,200 – 5,600 SQ FT | Two buildings. View Marketing Flyer
    452 Industrial Park Road: Industrial | 7,626 SQ FT  View Marketing Flyer
    300 Technology Way: Industrial/Mixed-Use | 11,000 SQ FT | two floors with ability to be subdivided View 300 Technology Way

    We are the experts in commercial real estate, to speak to a specialized Associate, call 304.413.4350. Click HERE to visit us online.

     

    References

    Chen, J. (2024, July 30). Triple Net Lease (NNN): What It Means and How It’s Used. Investopedia. https://www.investopedia.com/terms/t/triple-net-lease-nnn.asp

     

     

     

     

  7. Did you know…The Commercial Real Estate Market has Four Cycles

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    Did you know understanding market cycles is crucial to commercial real estate?

    The commercial real estate market cycle has four phases: recovery, expansion, hyper supply and recession. Understanding these market cycle phases can help guide decision making when it comes to commercial real estate investing.

    Professor Glenn Mueller of the University of Denver’s Burns School of Real Estate is considered the authority on market cycle phases. He describes the phases as:

    Recovery – This is the first phase (normally following a recession), it is characterized by low demand for commercial real estate and minimal new construction products.

    Expansion – This phase is characterized by balanced supply and demand levels and a stabilized GDP.

    Hyper Supply – During the hyper supply phase, supply begins to outpace demands and construction slows.

    Recession – The recession phase is an extreme continuation of hyper supply with supply outpacing demand. This phase is characterized by falling prices and a declining market; this is when commercial real estate prices hit their lowest.

    (The Commercial Real Estate Cycle & CRE Investment Strategies, 2023)

    What CRE sector is popular right now? According to a recent Moody’s report, because of the popularity of ecommerce, industrial properties like warehouses and distribution centers are in demand (LaSalvia, 2024). Industrial properties with efficient, flexible designs that can be used as warehouses and distribution centers will be the go-to choices to fill ecommerce needs.

    Check out some of Black Diamond Realty’s versatile industrial properties:

    13, 15, 17 Excavation Lane – This industrial warehouse in Morgantown has versatile features to meet your business needs. The 7,500 (+/-) square foot property boasts four overhead doors, is available for sale or lease and can be divided into three separate spaces if desired. Learn more about 13, 15, 17, Excavation Lane. 

    1700 Grafton Road – 1700 Grafton Road is a newly built industrial building available for lease in Morgantown. The 12,000 (+/-) square foot building sits on 2.5 (+/-) acres. Features like five overhead doors, a storage yard and 20’ ceilings add to the efficiency of this property. Learn more about 1700 Grafton Road. 

    56 Distributor Drive – This industrial warehouse/office building is comprised of 28,480 (+/-) square feet and located in Morgantown. The building is equipped with five overhead doors, full drive-through capability, two loading docks, a security system and ample signage opportunity. 56 Distributor Drive can provide the efficiency and functionality your business needs! Learn more about 56 Distributor Drive.

    452 Industrial Park Road – This for lease warehouse building in Jane Lew offers versatility in a convenient location. The property is 7,626 (+/-) square feet on 3.36 (+/-) acres with easy access to I-79, Exit 105. 452 Industrial Park Road features two overhead doors, office space and a large industrial area that would make it a great option for stocking and inventory uses. Learn more about 452 Industrial Park Raod

    123 Turkey Run – 123 Turkey Run Road is a 5.5 (+/-) acre industrial property located in Salem, WV. It consists of two buildings totaling 7,800 (+/-) square feet, two flat, fenced areas for outdoor storage, two covered storage buildings and around 2.5 acres of additional land that could be developed. Learn more about 123 Turkey Run. 

    164 Eyster Road – This offering is a Jefferson County mill that has been in continuous operation since 1869! 164 Eyster Road in Halltown is comprised of 201,380 (+/-) gross square foot industrial manufacturing facility. Learn more about 164 Eyster Road. 

    We are the experts in commercial real estate, to speak to a specialized Associate, call 304.413.4350. Click HERE to visit us online.

    Did You Know: Market Cycles from Black Diamond Realty on Vimeo.

     

    Resources
    For detailed market cycle analysis – Mueller Real Estate Market Cycle Monitor

    References
    LaSalvia, T. (2024, July 2). Q2 2024 Preliminary trend announcement. Moody’s CRE. https://cre.moodysanalytics.com/insights/cre-trends/q2-2024-preliminary-trend-announcement/

    The Commercial Real Estate Cycle & CRE Investment Strategies. (2023, February 3). Avistone. https://avistone.com/learn/understanding-the-four-phases-of-the-commercial-real-estate-cycle/