NOVEMBER 20248 PropTechOutlookOPINIONIN MYAs Vice President Real Estate Development at HOLT CAT, I oversee all real estate holdings and manage facilities activities, including location, site acquisition, selection, land development and construction, and divestitures. Interestingly, I also enjoy assessing all real estate and facilities for purchase and sale and monitoring owned real estate value by evaluating potential sites based on demographics, property cost, and market potential. Subsequently, I conduct buy versus lease analysis and make recommendations to company senior leadership and owners to maximize the return on their investment.At HOLT CAT, we focus on value-based leadership, creating distinguished value for our customers, which not only has preserved the 90 years legacy from the revolutionary Benjamin HOLT but continues to make a substantial difference in all of our businesses and employee's personal lives, based on trust, integrity, care, and collaboration. Frequently, we assess new properties to ensure they meet our organizational needs and expectations and negotiate contract terms as needed. In my role, I implement management policies for the real estate portfolio of the largest CAT dealer in Texas.The general principles supporting real estate hold true despite all the changes occurring in the commercial real estate market today as a result of the pandemic's lingering impacts, rising interest rates and capitalization rates, persistent inflation, and continuous geopolitical uncertainty. In contrast to money and financial assets, which can be manufactured at will, the land that supports the economy is limited and becoming increasingly rare. Real estate is quite likely to outperform other traditional assets, including equities and especially fixed-income investments, on a long-term basis given the uncertain macroeconomic environment now in place.When determining the value of a piece of commercial real estate, there are four basic metrics that can be used. While the price per square foot metric is directly tied to real estate, three other metrics­gross rent multiplier, cap rate, and cash-on-cash return­are tied to the income that it produces.Price Per Square Foot/UnitCalculated by dividing a property's price by its total area or, in the case of multi-family or hospitality properties, by the number of units, this metric lets you compare your property to roughly similar but differently sized properties. The key limitation of this DETERMINING THE VALUE OF COMMERCIAL REAL ESTATEBy Kalinka B. Ivanova, Vice President Real Estate Development, HOLT CATKalinka B. Ivanova
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