Why is zoning important? Zoning laws determine what kind of structures can be built, whether or not an existing property can be re-purposed, and even whether or not an existing structure can be replaced with something new at all. Of course, even if these aren’t changes you are currently considering, you might have a neighbor trying …
The concept of zoning is fairly simple. A governing body enacts laws to create districts within its jurisdiction and regulations to govern the uses and structures inside those districts. The creation of these districts and regulations are designed to serve the jurisdiction’s general welfare by promoting growth and development in accordance with the body’s planning …
You’ve read the first ten pages of the proposed commercial lease and are satisfied that it reflects the deal points. And then you get to the last three pages and the section titled “Miscellaneous.” Your eyes glaze over and you consider pouring that fourth cup of coffee. Or, you think, these are just “boilerplate” terms …
A commercial real estate developer identifies a property ideal for its use, but because he can’t find a way to make the project financially feasible, he considers looking elsewhere. The city though wants the developer to undertake the project because it would replace property that generates negative social and economic impacts with a property that …
The equity multiple is a commonly used performance metric in commercial real estate, and yet it’s not widely understood. In this article, we’ll take a look at the equity multiple as it’s used in commercial real estate, and we’ll also walk through several examples step-by-step. What Is the Equity Multiple? First, what exactly is the equity …
The mortgage constant, also known as the loan constant, the debt constant, or the mortgage capitalization rate, is an important concept to understand in commercial real estate finance. Yet, it’s commonly misunderstood. In this article, we’ll take a closer look at the mortgage constant, discuss how it can be used, and then tie it all …
Financing short falls within the commercial real estate market have become a common occurrence. The great recession has made traditional lenders more sensitive to risk, frequently leaving developers and project investors with large financing shortfalls. Sponsors can seek family and friends financing or a larger joint venture (JV) equity injection, but occasionally this gap may …
Here is the December 2012 edition of our employment growth trends data. If you’d like to access more data like this, complete with interactive charts and graphs for every state, MSA, and county in the United States, sign up now for a free trial.
The recession officially ended back in 2009 and the economy has been growing ever since, yet it still feels like a recession to most people. Why is this and how long will it take to get back to normal? More importantly, what does this mean for commercial real estate? First, let’s take a look at …