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Is there a way to make commercial real estate viable?
Posted: Thu Mar 02, 2017 9:25 am
by lokren
I have tried a few times in the past to do commercial real estate games where the you attempt to survive just doing real estate... and it appears that it is a complete loser's game. There does not appear to be any real upside since you profit margins are so ridiculously poor... A $500,000 convenience store can net around 2 mill in profits a year, but a 10 million dollar commercial building can only net around 500k to 700k... if you are lucky and the games manic depressive market conditions allow you to keep any type of occupancy.
Re: Is there a way to make commercial real estate viable?
Posted: Thu Mar 02, 2017 6:30 pm
by Spac3y
lokren wrote:I have tried a few times in the past to do commercial real estate games where the you attempt to survive just doing real estate... and it appears that it is a complete loser's game. There does not appear to be any real upside since you profit margins are so ridiculously poor... A $500,000 convenience store can net around 2 mill in profits a year, but a 10 million dollar commercial building can only net around 500k to 700k... if you are lucky and the games manic depressive market conditions allow you to keep any type of occupancy.
Hmm. My commercial buildings make about 5m a year each so Im not quite sure why yours are so low ?
Re: Is there a way to make commercial real estate viable?
Posted: Sat Mar 04, 2017 4:29 am
by therealevan
Well if you're playing on CapLab, you can raise the prices of rent for each unit of real estate. So if there is a huge demand for commerical real estate, you can raise the rates to whatever you'd like for increase revenue. I'm not sure how it works in the cap2 base game.
Re: Is there a way to make commercial real estate viable?
Posted: Sat Mar 04, 2017 2:06 pm
by Spac3y
613% difficulty, commercials making $5m a year pretty much
- $5m a commercial building pretty much
- 613%difficulty_commercial.png (1.89 MiB) Viewed 10624 times
Re: Is there a way to make commercial real estate viable?
Posted: Wed Mar 22, 2017 6:31 am
by eleaza
lokren wrote:I have tried a few times in the past to do commercial real estate games where the you attempt to survive just doing real estate... and it appears that it is a complete loser's game. There does not appear to be any real upside since you profit margins are so ridiculously poor... A $500,000 convenience store can net around 2 mill in profits a year, but a 10 million dollar commercial building can only net around 500k to 700k... if you are lucky and the games manic depressive market conditions allow you to keep any type of occupancy.
Are you referring to the Capitalism 2 having this issue, or Capitalism Lab (or Cap Lab versions before CES DLC)?
Back in Cap 2, real estate have to be really careful picking the really high land value area.