The Mega-Deals Are Back in Commercial Real Estate

So you want to know how true players in the commercial real estate space get the big deals done? Many investors do. Analysts who monitor the real estate industry say investors who left traditional brick-and-mortar industries -- such as real estate -- during the dot-com and telecom booms have come back.

This has resulted in large amounts of capital driving massive real estate deals according to Wharton Business School professors and industry experts. The school's Samuel Zell and Robert Lurie Real Estate Center recently organized a meeting with three panel sessions, one of which was called 'Mega-Projects in Real Estate: Where Are They and How Do They Work?" to discuss recent trends.

Attendees learned about the challenges and creativity required to get big deals done. The panelists discussed aspects of structuring, underwriting, pricing, negotiating, financing and execution. It's safe to say that mostly everyone came away with the knowledge that while risks are high in commercial real estate transactions, so are the potential rewards.