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More often than not, some portion of every commercial real estate transaction is financed with debt. Typically, that debt comes from a bank or non-bank lender who agrees to lend a certain amount of money in return for certain concessions from a borrower. For example, they will almost always require a 1st position mortgage on the property securing the loan and could require the borrower to agree …
[Read more...] about Understanding the Personal Financial Statement
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Suppose that a medium sized accounting firm is looking to expand its footprint by leasing office space in a new city. After touring several spaces, they have narrowed it down to two options. The options have similar rental rates, but the firm wants to conserve capital so they need to figure out which one is less expensive. To solve this problem, they need to identify and analyze all of the …
[Read more...] about Introduction to Comparative Lease Analysis
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A typical retail shopping center or mall works under a tried and true business plan. The owner and/or developer of the property works first to attract one or more “anchor” tenants and then surrounds them with a variety of smaller tenants who benefit from the traffic they create. Together, the anchor and their supporting tenants form a mutually beneficial “ecosystem” that works to deliver a …