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How Much to Charge for Commercial Rent: 5 Key Considerations

How Much to Charge for Commercial Rent

Commercial real estate investors must accurately determine how much rent they should charge. Too high rent will result in tenant turnover and vacancies, and too low rent will result in lower returns and potential cash flow issues. The right rent will be competitive with the local market and also provide a satisfactory return on investment (ROI). Here are some ways to determine how much to … Read More

Hotel to Apartment Conversion: A Guide

Hotel to Apartment Conversion

Investors looking for a way to transform a hotel into an apartment community may find that the premise makes good sense. While it can be a profitable move in some situations, investors must complete due diligence to understand the opportunities and limitations this process can offer fully.

Often called adaptive reuse of a property, this method can afford cities access to the housing they need … Read More

A Guide to One Percent Rule in Real Estate Investing

One Percent Rule

Real estate investors can use a variety of litmus tests to determine whether a property could be worth investing in. No single rule is a failsafe in real estate, but several can be informative when screening or evaluating properties. The one percent rule is among the most common tests used by investors who prioritize rental income.

What is the One Percent Rule in Real Estate? … Read More

Depreciation on Rental Property: Calculation & Requirements

Depreciation on Rental Property

Understanding depreciation is essential to accurately evaluating rental property financials. It’s used to evaluate expenses and returns, and IRS-allowed depreciation is eligible for a tax benefit. Here’s how to calculate the depreciation on a residential or commercial rental property.

What is Depreciation on Rental Property?

Depreciation accounts for tangible assets’ loss in value. It’s a financial method of factoring in the wear and tear that … Read More

What is Appurtenances in Real Estate: Definition and Examples

Appurtenances in Real Estate

It is not uncommon for property owners to need to make additions or change the floor plan of their property. This occurs in both commercial real estate as well as in residential properties. When those changes to the building are permanent, meaning they cannot be easily removed, they are referred to as appurtenances. Understanding this concept is critical for commercial real estate investors who may … Read More

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.

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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