Since the advent of the REIT, the public has become more aware of the possibilities of real estate development. The notion persists to this day, however, that the real estate investor is, by necessity, a very well-heeled individual. This can be true in many cases, but it is by no means the rule anymore. Many people, primarily professionals, have pooled their pension plans and formed small self-directed REITs of their own. These groups have not really formed a publicly traded REIT, but rather, have formed partnerships and companies to own and operate these assets. They build, buy, sell, and exchange these investments regularly to maximize their portfolios, much the same way any investor does with a stock portfolio.
In every building project there are different functions for both owner and occupant. One person or entity may fill all the available functions in a transaction; however, in some cases, many different participants get involved in the various functions. The owner/investor may be the initial developer or someone who buys it after completion.
Some buildings change hands many times during Buzzwords their useful life. The initial occupant can be the developer, the owner, or the tenant. In the case of
Premises are legally defined pieces of real property multi-tenant buildings, the tenants may be, and usuthat
can be the subject of a lease ally are, unrelated to the owner. The tenant could be
or a sale. the developer, but not the eventual owner. There are many roles in any scenario for everyone. All involve
real estate investment. For the tenant, the lease is also an asset as well as a liability. The right to occupy a specific premises can, under certain conditions, be assigned and, therefore, sold.