Real Estate Limited Partnerships in Commercial Real Estate
In many cases, commercial real estate investments are structured as real estate limited partnerships (RELPs). A RELP will generally consist of a general partner (GP) and multiple limited partners (LPs). The GP, who is financially responsible for the investment, is often a real estate developer or property manager, while the LPs are typically passive investors who only contribute capital to the project.
Demolition Costs in Commercial Real Estate
Right now, commercial demolition costs between $4 to $8 per sq. ft., with the average per building demolition cost in the U.S. currently sitting at $30,500. However, it’s also important to note that for especially large buildings, demolition costs per square foot may fall slightly.
Merchant Builders in Commercial Real Estate
Merchant builders, also referred to as merchant developers, are those developers that build properties and sell them, rather than holding onto them for longer periods of time. In many cases, merchant builders trend toward the construction of single-tenant commercial buildings. This can often be explained by the fact that, much of the time, merchant builders don’t build on spec; instead, they develop a building with a specific tenant in mind, typically a national brand such as a Wendy’s or a CVS.