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A Guide to Commercial Real Estate Asset Management

Commercial Real Estate Asset Management

Commercial real estate asset management is the method used to determine how effective a project or property is in achieving the goals the investor sets. In short, it is one of the most important ways to gather information to make a decision about assets before purchase or, in some cases, in the decision to liquidate.

What is Asset Management in Commercial Real Estate?

Asset management … Read More

Absolute Net Lease: How It Differs from Triple Net Lease?

Absolute Net Lease

Commercial real estate investors are generally responsible for the maintenance and repair of the buildings they purchase unless there’s an absolute net lease in place. Using an absolute net lease shifts these responsibilities onto the tenant, which can result in easier operations, more lenient financing, and several other benefits.

What is an Absolute Net Lease?

An absolute net lease is one of the strictest commercial … Read More

Understanding Loss to Lease in Multifamily Property

Loss to Lease

Real estate investors must consider how much rent they can charge for a property prior to investing in the property. However, there is often a difference between what this estimate is and what the actual rent earned occurs. This is called the loss to lease, or LTL. It is an important calculation for all property investors to consider.

What Does Loss to Lease Mean?

Loss … Read More

How to Calculate Occupancy Rate: Formula and Calculation

How to Calculate Occupancy Rate

Occupancy rate is a metric that helps real estate investors and managers assess a property’s performance and pricing. Here’s a guide to understanding occupancy rates for hotels and similar properties, including how to calculate it and what can be learned from it.

What is Occupancy Rate in Commercial Real Estate?

Occupancy rate is a standard metric used within the hotel industry, and it’s also useful … Read More

How to Sell Commercial Real Estate: 5 Tips

How to Sell Commercial Real Estate

Selling commercial real estate is significantly different than selling residential property. Though the process of transferring real estate from person to person may be similar, there are numerous other factors owners must take into consideration before simply deciding to list their commercial property for sale, including understanding their target buyer, what type of property they are selling, and the value of the property.

How Long … Read More

How to Calculate Rental Yield on a Property

Rental Yield

Any successful real estate investment requires understanding the profitability of said investment. While profitability can be ascertained several ways in real estate, yield is one of the most important ones if holding rental properties. A percentage-based figure, yield is one way to calculate a property’s returns against its value.

What is Rental Yield?

Rental yield shows the annual return a property generates through rent, as … Read More

Average Daily Rate Calculator: ADR Formula and Calculations

Average Daily Rate Calculator: How to Calculate ADR

Businesses in the hospitality industry derive the bulk of their revenue from room sales. One of the key metrics used to understand room revenues is the average daily rate (ADR). If you’re investing in a hotel, motel, bed and breakfast or other lodging, it’s vitally important that you understand how to calculate ADR.

What is the Average Daily Rate or ADR?

The average daily rate … Read More

A Guide to CMBS Delinquency Rates

CMBS Delinquency

The commercial mortgage backed securities (CMBS) rate has been fluctuating in recent years, and sometimes has spiked as the commercial real estate landscape adjusts to new work  habits. Because CMBS are borrowed by real estate investors and purchased by securities investors, delinquency rates can affect both parties. Here’s a guide to CMBS delinquency.

Understanding Delinquency Rates

At its core, a delinquency rate quantifies the proportion … Read More

Understanding Mortgage Constant: Calculation, Formula and Applications

Mortgage Constant

For real estate investors, understanding all of the numbers in any transaction is critical to determining if a transaction is worthwhile. Often, the focus is on determining if the return on investment is worthwhile, and that is often the case when costs are in line with earning potential. One specific area of focus is the cost of debt service. Mortgage constant is one of the … Read More

What is DIP Financing and How it Works?

DIP Financing

Securing financing is a process for any business that needs to borrow funds, but it’s especially challenging when going through bankruptcy. For businesses and firms that are facing bankruptcy, there’s debtor-in-possession financing (DIP financing).

What is DIP Financing?

DIP financing is a specific type of financing that may be available to businesses going through Chapter 11 bankruptcy proceedings. The term “debtor in possession” refers to … Read More