posted by admin on Oct 9
A Career In Commercial Real Estate
A career in commercial real estate can be invigorating, challenging and rewarding. There are many facets of the real estate industry, and even if you have no interest in becoming a leasing or sales broker, there might be an opportunity out there that is of interest to you. Be advised that in general, a career in real estate will likely require hours of coursework as well as the satisfactory completion of one or more licensing exams.
With a plethora of anecdotal evidence pointing to a softening commercial real estate market, the potential adverse impact of increasing exposure by banks in this segment is not just on asset values, but also on earnings and capital levels.
The concentration in the industry’s real estate income is the most alarming element. Total real estate income, consisting of all gross interest income and fees, jumped 30.4% in dollar terms from 2004 to 2005, accounting for a staggering 42.3% of total banking revenues.
Total banking revenues is defined as all noninterest income and net interest income, rather than gross interest income, because in the event of a loss in real estate income, banks still would have to carry the funding cost of the troubled loan assets, i.e., the related interest expense.