Understanding the commercial real estate loan underwriting process can give you an advantage when seeking debt financing for a commercial property. In this article, we’ll discuss how lenders underwrite commercial real estate loans, and how to determine the maximum loan amount for a property. We will also cover how underwriting changes for different loan types, …
One of the first steps in evaluating a commercial property is determining the total rentable square feet. While this might seem like a straightforward calculation, it unfortunately doesn’t always end up being so simple. This is particularly true for multi-tenant buildings. In this article we’ll go over how to calculate rentable square feet (RSF), usable …
It’s common in the commercial real estate industry to use leverage, which means acquiring a property with debt rather than paying all cash. Positive leverage occurs when debt increases an investor’s rate of return. Negative leverage occurs when debt decreases an investor’s rate of return. At a high level, these leverage concepts are easy to …
Understanding the cash on cash return in commercial real estate is important when you are evaluating investment real estate transactions. What is the cash on cash return, and how do you calculate it for a commercial property? What are the nuances and limitations of the cash on cash return? In this article, we’ll tackle these questions …
After winning a new listing, the first step in any CRE marketing plan is to build a commercial real estate marketing package. But if you go on Loopnet or pull up some random marketing email blasts, it’s amazing what some brokers try to get away with. Most commercial real estate marketing packages are really bad, especially …
The discount rate is one of the most frequently confused components of discounted cash flow analysis. What exactly is the discount rate, and how does it work? What discount rate should I use in my analysis? These are all important questions to ask, and this article will explain the answers in detail. Read on for …
Here’s our latest infographic on the jobs recovery. This infographic shows job growth by state over the past month, year, 3 and 5 year periods. As visualized in the charts below, employment growth has been positive over the past few years, but in most states there’s still a long way to go.
A CCIM designation sets you apart from other commercial real estate professionals, establishes you as an expert in the field of commercial investment real estate and helps you achieve success in your chosen field. If you have been thinking of earning your Certified Commercial Investment Member designation but wanted to dig a little deeper before …
The full service lease is a commonly used lease structure in the commercial real estate industry. Unfortunately the term “full service lease” can mean different things depending on who you talk to or what part of the world you are in. In this article we’ll take a deep dive into the full service lease and …
Are you a licensed commercial real estate broker thinking of obtaining your SIOR designation? Have you often wondered what is required to become a SIOR designee? Are you curious to find out if a professional designation from the Society of Industrial and Office REALTORS® is right for you? Well, if you answered yes to any …