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Ron Forlee

A comprehensive course for commercial real estate developers and investors.

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A comprehensive course for commercial real estate developers and investors.

This course is for professionals with specific interest in commercial development. It teaches you about the risk and rewards of commercial property and how to take advantage of development opportunities. If you intend making a career in developing and investing in Commercial Real Estate Development, then this in-depth course is a must. While the course “An Intelligent Course on Real Estate Development” provides an overview of real estate development, this thorough course covers all aspects of Commercial Development and investment. As the content is quite extensive, it had to be split into two sections namely, (a) Fundamentals and (b) Asset Classes or types of residential projects. Part A “The Fundamentals in developing and investing in Commercial Real Estate” covers areas of the Commercial development and investment process in detail plus tips and development strategies. While this course is based within the Australian context, the development principles apply to many other countries as well.

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What's inside

Learning objectives

  • Learn the difference between residential and commercial real estate
  • How to be conversant and discuss the commercial property with industry experts
  • Learn to understand how strategic planning makes commercial projects successful
  • Learn to grasp the various funding models that commercial projects work
  • How to apply key analysis techniques to a commercial property
  • How to structure commercial lease agreements
  • Learn why commercial real estate is a better passive income earner

Syllabus

Introduction

· Social interaction

· Attractive investment

· Commercial developers

· Higher returns

· Equity leverage

· Cash flow

· Capital growth

· Tangible assets

· Tax advantages

· Inflation hedge

Read more

· Introduction

· The need for commercial buildings

· Commercial versus residential

· Types of commercial real estate

· Types of commercial developers

· Role of a commercial developer

· Organisational structure

· Conclusion

· Introduction

· Unique factors

· Rewards in commercial real estate

· Risks in commercial real estate

· Commercial property strategies

· The importance of market research

· Importance of a business network

· Commercial development opportunities

· Conclusion

· Introduction

· Advantages of developing

· Advantages of investing

· The comparison

· The decision

· Strategic approach

· Conclusion

· Introduction

· Selection process

· The commercial development team

· Managing your development team

· Conclusion

· Introduction

· The process

· Conclusion

· Introduction

· Factors that make a good commercial site.

· Analyse the economic characteristics

· Analyse real estate market trends

· Analyse characteristics of the site

· Assembling several properties for development

· Repurposing buildings for commercial use

· Conclusion

· Introduction

· Structuring your offer

· Position yourself for negotiations

· Prepare a pre-purchase feasibility

· Items to consider before making the offer

· Leasing land for development

· Tendering for a development site

· Securing development rights

· Securing an option

· Conclusion

· Introduction

· Stages in making a project bankable

· Preparing a cost and income spreadsheet

· Preparing a pre-feasibility analysis

· Monthly cash flow during the development period

· Sensitivity analysis

· Refine the process

· Financial and measurement calculations

· Conclusion

· Introduction

· Items to consider before establishing a structure

· Ownership structures for developments

· Taxes to consider with commercial property

· Tax laws applied to non-resident developers

· Conclusion

· Introduction

· Funding a commercial development

· The lenders

· Alternative sources of commercial funding

· Loan characteristics

· How a lender evaluates a development loan

· Negotiating loan document details

· Using finance brokers

· Conclusion

· Introduction

· What is equity?

· What is sweat equity?

· Equity through the landowner

· Dealing with an equity partner

· Preparing an investor information package

· Guide to raising equity

· Increasing your equity in a staged process

· Conclusion

· Introduction

· The development approval process

· Step 1: legal due diligence

· Step 2: site information

· Step 3: market research

· Step 4: creating the development brief

· Step 5: development team selection

· Step 6: development approval budgeting

· Step 7: programming work tasks

· Step 8: master planning & architectural design

· Step 9: feasibility studies

· Step 10: preliminary development finance

· Step 11: development approval application

· Step 12: development approval

· Conclusion

· Introduction

· The role and responsibilities of a contractor

· Types of contractors

· Contractor selection criteria

· Understanding building contracts

· Tender phase

· Construction phase

· Conclusion

· Introduction

· Commercial versus residential leasing

· Commercial leases

· Commercial agreement to lease

· Commercial leasing agent

· Commercial property management

· Commercial asset management

· Conclusion

· The fundamentals

· Asset classes

· Practical experience

· Final note

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Explores the advantages of both developing and investing in commercial real estate, which allows learners to make informed decisions about their career paths
Covers various funding models applicable to commercial projects, which is essential knowledge for securing financial backing and managing project finances
Details the commercial development approval process, which is a critical step for ensuring projects comply with regulations and can proceed smoothly
Examines the Australian context, but the development principles discussed are applicable to many other countries, which broadens the course's relevance
Requires learners to understand the differences between commercial and residential leasing, which is important for property management and investment strategies

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Reviews summary

Commercial real estate fundamentals overview

According to learners, this course provides a comprehensive overview of the fundamentals of commercial real estate development and investment. Students highlight it as a good foundation for those starting in the field, appreciating the coverage of the full process and the knowledgeable instructor. The sections on finance and analysis were noted as particularly useful. However, some reviewers felt the course remained at a high level, wishing for more practical examples and deeper dives into areas like feasibility analysis. While providing a solid starting point, learners indicate it requires further study for practical application and is best viewed as an introduction before moving to more advanced topics or Part B.
Based on Australian regulations.
"Australian context is fine, principles are universal."
"The Australian focus is sometimes distracting if you're not in Australia..."
Instructor knows the subject well.
"Instructor is knowledgeable."
"Instructor knows his stuff."
"The instructor is clear and articulate."
Provides a broad, solid base.
"Very comprehensive, covers all the fundamentals."
"This course gave me the solid foundation I needed."
"Excellent overview for someone starting out in commercial real estate."
"Provides a good grounding in the basics of commercial real estate development."
Not sufficient for practical work.
"Good foundation, but definitely need Part B for asset classes."
"don't expect to be ready to do a deal right after this. Good starting point."
"Need to supplement with other materials."
"It's a good map, but you need more tools to navigate."
Can lack depth in practical areas.
"felt it stayed quite high-level. Expected more practical examples."
"Very basic, mostly definitions and high-level concepts. Didn't go deep enough..."
"heavy on theory... don't expect to be ready to do a deal right after this."
"Content felt a bit rushed in places, especially finance. Need to supplement with other materials."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Commercial Real Estate Development and Investment – Part A with these activities:
Review Real Estate Market Analysis Techniques
Refresh your understanding of real estate market analysis techniques to better assess commercial property opportunities.
Show steps
  • Review key concepts like supply and demand, vacancy rates, and absorption rates.
  • Practice analyzing sample market data for different commercial property types.
  • Identify reliable sources of market data for your target geographic area.
Read 'Real Estate Development: Principles and Process'
Gain a broader understanding of the real estate development process to contextualize the specifics of commercial development.
Show steps
  • Read the book cover to cover, taking notes on key concepts and processes.
  • Focus on chapters related to market analysis, financing, and project management.
  • Relate the concepts in the book to the specific topics covered in the course.
Analyze a Local Commercial Property
Apply the course concepts by analyzing a real-world commercial property development project in your local area.
Show steps
  • Select a commercial property development project in your local area.
  • Gather information on the project, including market data, financial projections, and development plans.
  • Analyze the project's feasibility, risks, and potential returns.
  • Prepare a report summarizing your findings and recommendations.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Create a Presentation on Commercial Lease Structures
Solidify your understanding of commercial lease agreements by creating a presentation explaining different lease structures.
Show steps
  • Research different types of commercial lease structures (e.g., gross, net, percentage).
  • Prepare a presentation outlining the key features, advantages, and disadvantages of each lease structure.
  • Include real-world examples of how different lease structures are used in commercial properties.
  • Practice delivering the presentation to a friend or colleague.
Read 'The Art of the Deal'
Learn about negotiation strategies and deal-making tactics to improve your ability to secure favorable terms in commercial real estate transactions.
Show steps
  • Read the book, paying attention to the negotiation strategies and deal-making tactics described.
  • Identify the key principles that Trump uses in his negotiations.
  • Consider how these principles can be applied to commercial real estate transactions.
Attend Real Estate Investment Meetups
Expand your network and learn from experienced commercial real estate professionals by attending local investment meetups.
Show steps
  • Search for local real estate investment meetups or networking events.
  • Attend the events and introduce yourself to other attendees.
  • Ask questions and learn from their experiences in commercial real estate.
  • Exchange contact information and follow up with interesting connections.
Develop a Commercial Property Investment Pitch
Create a compelling investment pitch for a hypothetical commercial property to demonstrate your understanding of key investment principles.
Show steps
  • Select a hypothetical commercial property (e.g., office building, retail center).
  • Gather relevant market data and financial information for the property.
  • Develop a presentation outlining the property's investment potential, risks, and projected returns.
  • Practice delivering the pitch to a friend or colleague, incorporating feedback.

Career center

Learners who complete Commercial Real Estate Development and Investment – Part A will develop knowledge and skills that may be useful to these careers:
Real Estate Developer
A real estate developer identifies opportunities, secures funding, and manages the entire development process. This course directly benefits a real estate developer by providing an in depth understanding of commercial real estate development, including strategic planning, funding models, and analysis techniques. Success as a developer requires navigating the process of developing commercial sites and this course provides guidance on structuring offers, preparing feasibility studies, and securing development rights. The course's Australian context doesn't diminish its value; the core principles of commercial development are universally applicable, making this course very helpful for any aspiring developer. This thorough training will help a developer at any stage of their career.
Commercial Real Estate Investor
A commercial real estate investor seeks to acquire and manage properties for income and capital appreciation. This course provides a solid foundation for a commercial real estate investor. The course discusses analyzing commercial properties, understanding funding models, and structuring lease agreements. An understanding of risk and reward in commercial real estate is essential for a successful investor, and this course helps build that understanding. If you are looking to invest in commercial projects, this course covers the fundamentals and strategies that will help you make informed decisions, and structure investments for passive income.
Real Estate Development Manager
A real estate development manager oversees the planning, coordination, and execution of real estate projects. This course helps a real estate development manager understand various key stages of commercial real estate development. The course teaches about strategic planning, team management, and the critical steps of the process to help a development manager be successful. The course helps build a knowledge of project funding, cost analysis, and feasibility studies; these are vital skills for a real estate development manager to properly coordinate projects from start to finish.
Commercial Real Estate Analyst
A commercial real estate analyst is responsible for evaluating properties, conducting market research, and assessing financial risks. This course is especially relevant for a commercial real estate analyst due to its detailed coverage of commercial real estate analysis techniques. The course includes instruction on how to analyze economic characteristics of a site, interpret market trends, and prepare financial feasibility studies. This course will help an analyst better understand the nuances of commercial property and contribute to investment decisions or development plans. The comprehensive syllabus provides a solid framework for analysis.
Property Acquisition Specialist
A property acquisition specialist focuses on identifying and securing suitable properties for investment or development. This course provides a foundation for a property acquisition specialist due to its focus on site analysis, negotiation strategies, and securing development rights. The course covers how to assess the characteristics of a commercial site and structure offers, which helps a property acquisition specialist to be more successful in sourcing valuable properties. This course will be particularly helpful to master the complex process of identifying and acquiring commercial properties.
Leasing Manager
A leasing manager is responsible for securing tenants for commercial properties and managing lease agreements. This course will be very helpful for a leasing manager, because it includes detaild information about commercial lease agreements and also how to differentiate them from residential leases. Understanding commercial lease terms and the role of a leasing agent is crucial for a leasing manager to be successful in this role. The course also touches on commercial property management which is often an adjacent skill of a leasing manager.
Real Estate Portfolio Manager
A real estate portfolio manager oversees a collection of properties, aiming to maximize returns and manage risk. This course helps a real estate portfolio manager understand the fundamentals of commercial real estate investment and development. The course covers the unique aspects of the commercial sector, how to analyze potential investments, and how to manage both the risk and rewards. This course may be particularly useful in structuring a commercial portfolio, and generating a strong income stream.
Construction Project Manager
A construction project manager plans, coordinates, and oversees construction projects from beginning to end. This course may be useful for helping a construction project manager better understand the commercial development process from the planning and financing stage. Topics such as development approvals, contractor selection, and the building tender phase can help a construction project manager understand the larger scope of a project. By taking this course a construction manager can better manage their projects, having taken a bird's eye view of the development cycle.
Commercial Loan Officer
A commercial loan officer evaluates and approves loan applications for commercial real estate projects. This course may be useful for a commercial loan officer for better understanding all the steps of commercial development and how to assess the project. Understanding various funding models, and how lenders evaluate commercial development loans, are important areas for a loan officer to be familiar with. This course covers these, and thus may help a loan officer in better understanding the big picture of a development plan.
Urban Planner
An urban planner works to develop plans and programs for the use of land within a city and community. This course may be useful to an urban planner to better understand how commercial development fits into the built environment. The course provides an overview of the different types of commercial real estate, the need for different types of commercial buildings, and how various development principles apply across countries. It also touches on repurposing buildings, which can be useful for an urban planner. Although the focus is on development, this course may be helpful in understanding the market dynamics that shape the physical layout of a city.
Property Manager
A property manager is responsible for the day-to-day operations and maintenance of a property. This course may be helpful to a property manager, since it touches on commercial property management. While this course is focused on development rather than ongoing management, the course helps give a broader understanding of the commercial property landscape, which is relevant to a property manager. Familiarity with the processes and financial concepts of commercial real estate can be helpful for a property manager.
Real Estate Broker
A real estate broker helps clients buy, sell, and rent properties. This course may be useful to a real estate broker in so far as it provides a solid overview of commercial real estate. The course helps a broker understand the distinction between commercial and residential properties, and how to navigate the differences. The course may also be helpful in the knowledge of the commercial leasing process. While the course is not tailored specifically to brokers, greater knowledge of the commercial field will always be an asset for a broker.
Financial Analyst
A financial analyst provides guidance to businesses and individuals making investment decisions. This course may be helpful for a financial analyst because of its concentration on the financial aspects of developing and owning real estate. This includes market research and feasibility studies that help analysts better assess a commercial real estate venture. While this course focuses on real estate, knowledge of real estate finance may provide a useful tool for a financial analyst in another context.
Business Development Associate
A business development associate identifies new business opportunities and develops strategies to increase revenue. This course may be helpful for a business development associate who is interested in commercial real estate. Understanding the different types of commercial developers, risks and rewards in commercial real estate, and the strategies involved may help a business development associate identify clients and opportunities in the commercial real estate industry. While not directly focused on the business development role, this course helps build insight in this unique field.
Marketing Associate
A marketing associate works with a team to help a business promote products or services. This course may be useful for a marketing associate in so far as it helps provide a deeper understanding of the commercial real estate sector. This information will help a marketing associate working in this field to target the right audiences for commercial real estate products. While this course is not explicitly about marketing, a marketing associate may still find this helpful in order to better reach commercial real estate professionals.

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Commercial Real Estate Development and Investment – Part A.
Provides a comprehensive overview of the real estate development process, from initial concept to final disposition. It covers key topics such as market analysis, site selection, financing, and project management. This book is commonly used as a textbook in real estate development programs. It offers a strong foundation for understanding the complexities of commercial real estate development.
Provides insights into negotiation strategies and deal-making tactics in real estate. While not specifically focused on commercial real estate, it offers valuable lessons on how to approach negotiations and structure deals to your advantage. This book is more valuable as additional reading than it is as a current reference. It provides a different perspective on the art of negotiation.

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