What is Class A/B/C
Classification of properties based on various factors including age, amenities, and location.
Commercial Real Estate FAQs
Rentable Square Footage
The usable square footage plus a portion of the common areas.
Due Diligence
The comprehensive appraisal of a property to evaluate its commercial potential.
CAM Charges
Common Area Maintenance charges, fees paid by tenants to cover the costs associated with areas shared among all tenants.
What is Cap Rate
The capitalization rate, a measure used to calculate the return on investment of a property.
What is Triple Net Lease (NNN)
A lease agreement that requires the tenant to pay all expenses of the property, including real estate taxes, building insurance, and maintenance.
How do I evaluate a commercial real estate investment?
Evaluating a commercial real estate (CRE) investment involves a comprehensive analysis, focusing on market trends, property specifics, financial metrics, tenant quality, lease terms, developer reputation, and regulatory considerations. Here’s a brief overview of the key steps, based on insights from multiple sources: Investing in CRE demands diligence, financial acumen, and an understanding of the broader … Read more
What is LTV Ratio
Loan-to-Value Ratio, a financial term used by lenders to express the ratio of a loan to the value of the property.
Net Lease
A lease agreement where the tenant pays not only rent but also some or all of the property expenses.
What factors affect commercial real estate values?
Evaluating commercial real estate values involves analyzing a broad spectrum of factors beyond just the property’s location. Here’s a summary of key elements that can influence the value of commercial properties, derived from insights across various expert sources: Understanding these factors provides a comprehensive view of what influences commercial real estate values, enabling investors to … Read more