Real estate ancillary revenue can be ambiguous. The simple reason being is that there is no clear definition on the subject. I define it as any revenue that is generated from your property that is ancillary to your core business. If your core business is leasing apartment complexes, then any dollar that is generated that is not leasing to a new residential tenant, would be considered ancillary revenue. I've also heard it described as: specialty leasing, new business development, local leasing, etc... Also, the fact remains that there are so many ways to make money from your real estate that don't include your core business, no one specific definition can suffice. Its difficult to some up a job description for something that can easily have thirty different responsibilities.
Therefore, I'm curious to know who in the real estate world is pursuing ancillary revenue. If you are pursuing the opportunity, what areas are you pursuing and why? Perhaps the why is understood but many developers and property managers I've talked to in the past believe ancillary revenue is more of a "thorn in my side" or "more cost than a reward". I would answer any nay-sayers this way. If you spend $1 pursuing ancillary revenue but received $2 for your efforts, is there any reason why you shouldn't consider the opportunity? No. There will always be a cost to pursue new business. However, if you generating more revenue through non-traditional channels while maintaining costs than the answer is clear. Ancillary revenue should always be considered....ALWAYS!!!
I challenge developers, property managers across the globe to see how much money their real estate is really worth. Coming out of a comfort zone to learn new skills can reap huge rewards at little or no cost. As with any new venture, a learning is to be expected. Time and research will pay off in the end. Dialogue also seems to spawn creativity. The creative person will able to see what lies underneath each stone that is turned. I enjoy pursuing ancillary revenue because it seems to me that every day is different. With countless revenue options to pursue, ancillary revenue can spice up even the most boring of days.
I challenge developers, property managers across the globe to see how much money their real estate is really worth. Coming out of a comfort zone to learn new skills can reap huge rewards at little or no cost. As with any new venture, a learning is to be expected. Time and research will pay off in the end. Dialogue also seems to spawn creativity. The creative person will able to see what lies underneath each stone that is turned. I enjoy pursuing ancillary revenue because it seems to me that every day is different. With countless revenue options to pursue, ancillary revenue can spice up even the most boring of days.
You're right, property owners/real estate investors/commercial brokers all need to constantly look for ways to increase revenue on their sites. One of the areas getting the most coverage lately has been wind energy (especially when it comes to farm land). I have recently seen first hand situations where farm owners are able to DOUBLE the income on a large parcel of land by allowing the construction of turbines on their property. Of course, if your farm isn't located in an area of ideal wind flows, this won't be an option. However, as wind energy farms continue to crop up (pun intended) in many communities throughout the country, this is something to consider. Plus, I can assume that the value of the land (from a CAP rate perspective) will only increase with the addition of this added income stream.
ReplyDeleteCraig Czerkies - Caton Commercial Real Estate - Plainfield, IL
The value add from a cap rate perspective can equate to an additional million from these revenue sources. Yes, renewable energy (solar, wind, geothermal, etc...) have increased in popularity due to the revenue potential. Also, affordability is another reason.
ReplyDeleteThere are renewable energy products on the market or coming soon designed specifically for commercial real estate that don't need large open spaces to operate. Roof top leasing is gaining more popularity and several companies are pushing this to tap into the revenue potential.
There are incredibly a lot of details like this take into consideration. That’s a great point out talk about. I offer the thoughts above as general inspiration but clearly you will discover questions such as one you bring up the place that the most crucial thing will probably be in the honest good faith. I don?t know if guidelines have emerged about such things as that, but I am sure that your job is clearly known as a fair game. Both boys and girls have the impact of simply a moment’s pleasure, for the rest of their lives. pisos de bancos
ReplyDelete