1.1INDUSTRY PROFILE:US Real Estate Industry:
Real estate in United States is one of the largest markets in the world. In fact, it is so significant to worldeconomic activity that the availability of easy money and the subsequent Housing Bubble triggered the Sub-Prime Crisis and eventually the global Financial Crisis of 2008 - 2009 that brought the world's economy to itsknees. The US real estate market is divided into 2 sectors: commercial real estate and residential real estate.Most discussion tends to focus on residential real estate (i.e. houses), but commercial real estate is also acritical sector of the economy, and is made up of offices, shopping malls, factories, warehouses and other commercial buildings.In order to be successful in real estate investment, an investor needs to understand house price trends, assessthe condition and value of the investment property, and secure a suitable mortgage or other form of realestate finance. The US real estate industry has been experiencing wonderful growth due to the relativelysteady good economy. In 2006, some markets had major gains in occupied space, others saw record salestransactions. The market has begun to tighten, developers remained cautious possibly eye toward the future, particularly predictions of escalating rental rates.
Major Participants in the Real Estate IndustryDevelopers
Development is an idea that comes to fruition when consumers – tenants or owner- occupants acquireand use the space put in place by the development team. Land, labor, capital management andentrepreneurship are needed to transform an idea into reality. Developers balance the needs of diverse providers and consumers of the real estate product. The developers have to demonstrate the project'sfeasibility to the capital markets and pay interest or assign Equity positions in return for funding.
Appraisers can be a part of every stage of the property development process. Appraisers are primarilyresponsible for valuation of the project. They estimate the market value of the property and typically preparea formal document called appraisal. Appraisal may be necessary when a developer transfers ownership, seeksfinancing and credit, resolves tax matters, and establishes just compensation in condemnation proceedings.Appraisers can also evaluate a project as input to market studies and feasibility studies. Some of the familiar