Real estate development is the fastest growing business now days. With the rapid increase in population, the space for living and working is getting scarce day by day. The Real estate developers/builders dont construct the buildings themselves but they buy the land and then finance the deal with the builders to construct the building at a fixed cost. The other important roles of real estate developers are
- Development and renovation of property and other buildings
- Lease and re lease of buildings
- Purchase and sale of raw land
- Marketing and sale of a property
It is very important for real estate developers to public approval for all the deals done by them. They have to work with city planners, engineers, architects, surveyors and contractors etc to ensure proper development of a building or land.
There are specialized programs for training real estate developers like Master of Science in Real Estate (MSRE) and Master of Real Estate Development. These programs aim to generate a vision about estate developing in the students.
The commercial real estate developing is also an inseparable part of real estate development in todays era of globalization. Offices are special buildings when the architecture and planning are concerned. Almost all the real estate developers specialize in making offices and business parks. They provide office for rent as well office for lease to their customers.
- Office on rent- The rent for the offices is fixed on the basis of money per floor- area-time. For example 30000 Rs per square meter per year. Proper documentation is done and the client is provided with a rental certificate.
- Office on lease- Lease is mostly taken for many years. Lease can be of two types- a triple net lease and a gross lease. In triple net lease; the tenant has to share the expenses such as taxes, maintenance, insurance, repairs, janitorial services and landscaping etc. On the other hand the rate in gross lease is inclusive of all these expenses.
The office space can be Class A, Class B and Class C according to the categories made by Building Owners and Managers Association (BOMA). All these properties differ in rent and also in the facilities available to the tenant.
