What is Vacancy Rate
The percentage of all available units in a rental property that are vacant or unoccupied at a particular time.
Build-to-Suit
A property that is constructed to the specifications of a future owner or tenant.
Anchor Tenant
A major retail tenant which serves to attract customers to a commercial property.
What is considered a conflict of interest in commercial real estate?
In commercial real estate, a conflict of interest occurs when the interests of the real estate professional conflict with the interests of their clients, potentially leading to actions that favor one party over another improperly. Common examples include: To avoid conflicts of interest, transparency and ethical reactions are critical. Real estate professionals should prioritize their … Read more
How do I calculate the return on investment for commercial real estate?
Calculating the return on investment (ROI) for commercial real estate involves understanding the income the property generates, the costs associated with purchasing and maintaining it, and the property’s growth in value. Here’s a basic formula to calculate ROI: To break it down further: NOI = Gross Rental Income − Operating Expenses ROI = Net Profit / Total Investment … Read more
How do I conduct due diligence for commercial properties?
Conducting due diligence for commercial properties is a critical and comprehensive process that requires meticulous attention to detail. Here’s a consolidated overview based on the insights gathered from multiple sources: Remember, due diligence is your safety net in commercial real estate investments, ensuring that you make an informed decision based on comprehensive and accurate information. … Read more
What are the types of commercial real estate?
The main types of commercial real estate include Office, Retail, Industrial, Multi-family, Hospitality, Mixed-Use, and special purpose.
What is Anchor Tenant
A major retail tenant which serves to attract customers to a commercial property.
Escalation Clause
A clause in a lease that allows the landlord to increase rent at set future dates.
1031 Exchange
A tax-deferred exchange allowing for the swap of one investment property for another to defer capital gains taxes.