X

The browser version you are using is not recommended for this site.
Please consider upgrading to the latest version of your browser by clicking one of the following links.

Understanding Sources and Uses in Commercial Real Estate

Sources and Uses

Investing in commercial real estate requires securing and spending large amounts of capital. Sources and uses statement shows how funding for a project is secured and how it’s expected to be used. This is one document that all commercial real estate investors should know how to create, read, and be prepared to supply lenders with.

What Do “Sources and Uses” Refer to in the Context … Read More

What is Base Rent in Commercial Lease?

What is Base Rent

A base rent provision is often in place within a commercial lease in commercial real estate. Most often listed as a clause, this is an important component for property owners and renters to understand. It provides specific insight into the tenant’s rent obligation.

It is not uncommon for commercial property investors and owners to work through a rent negotiation process with prospective tenants. In that … Read More

A Practical Guide to Investing in CRE CLO

CRE CLO

Collateralized loan obligations (CLOs) are a short-term financing option within commercial real estate. These can be a valuable vehicle for both property owners and loan investors who have a time frame of 3 to 5 years.

What are CRE CLOs?

CRE CLO stands for commercial real estate collateralized loan obligation. These are investment vehicles composed of short-term commercial real estate loans.

The loans are pooled … Read More

Build to Suit Lease: What It Means in Real Estate Investing?

Build to Suit Lease

Property owners who have vacant or ready-to-update property may wish to offer a built-to-suit lease. This means the property owner agrees to lease arrangements in which the owner works with a developer to build a property based on the tenant’s needs. For investors considering a vacant property, a build-to-suit lease could be advantageous if a prospective value exists in the area for new business development.

Read More

What is FF&E and Why FF&E Matters in Real Estate?

What is FF&E

Businesses may own many different types of property, with buildings, equipment, materials, and inventory being just a few examples. FF&E is one way of grouping assets that have value and last but aren’t part of a commercial real estate property.

What is FF&E?

Furniture, fixtures, and equipment (FF&E) refers to hard assets that last longer than one year but aren’t affixed to the building or … Read More

Percentage Lease: What It Is and How it Works in Commercial Real Estate?

Percentage Lease

There are several different ways to structure a commercial real estate lease. When leasing retail spaces, a percentage lease is one of the common options. The lease’s structure can have benefits for both the lessor and lessee.

What is Percentage Lease and How Does It Work?

A percentage lease is a commercial real estate lease wherein the tenant pays the landlord a portion of their … Read More

Understanding Real Estate Waterfall Model

Real Estate Waterfall Model

The investment in commercial real estate always warrants careful consideration of a variety of factors. As one of the most confusing of all commercial real estate investment strategies, the equity waterfall model may be one of the most important methods to truly understand. There are numerous ways cash flow from a project can be split, and that is what makes this real estate waterfall method … Read More

What Does ARV Mean in Real Estate Investment?

What Does ARV Mean in Real Estate

One of the most important figures that real estate investors must know is After-Repair value (ARV). Determining whether multi-family housing or commercial real estate is worth rehabbing is essential.

What is ARV in Real Estate Investing?

After-repair value estimates a property’s value after all planned renovations and repairs are completed.

ARV helps real estate investors determine how much a property could be worth. From that, … Read More

How to Find Out Who Owns a Commercial Property

How to Find Out Who Owns a Commercial Property

The best commercial real estate opportunities often aren’t listed. They require research to find, and a key component of the research is finding out who owns the property. Rarely is this easy to do, but several strategies can be used to figure out who you should contact about potentially purchasing a commercial property.

Understanding Commercial Property Ownership

Finding who owns a commercial property is more … Read More

Credit Tenant Lease (CTL) Financing in Commercial Real Estate

Credit Tenant Lease

Every landlord who’s held commercial real estate knows the value of a good tenant and understands that good tenants deserve incentives. One way that landlords can incentivize well-qualified tenants is with a credit tenant lease.

What is a Credit Tenant?

A credit tenant is a tenant that has a high credit rating, as determined by one of the major rating agencies (e.g. Moody’s or Standard … Read More