When it’s time to close on a commercial real estate transaction, the process can seem overwhelming. This definitive guide will walk you through every step in the commercial real estate closing process. You will see where the commercial process is similar to the residential process, and where things are different. You will also discover the places …
While the movement to make commercial real estate more sustainable is already several decades old, a new tool has been steadily taking hold in the marketplace that makes financing costly environmental upgrades attractive to investors and issuers. Green bonds have grown from just $12 billion in 2013 to over $36 billion in 2014. This year …
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 …
You’ve seen the news headlines about real estate crowdfunding and how it is changing the commercial real estate industry. In this article we’ll cover real estate crowdfunding in depth and give you a solid overview of what is possible with crowdfunding real estate investments and also where you need to be cautious. Note that this …
Often commercial landlords have clues that a tenant is going to be filing for bankruptcy. Rental payments are often late several months in a row. Sometimes the tenant falls more than a month behind on the rent. But, it can still be shocking when a landlord opens the mail and instead of a rent check …
The Net Present Value (NPV) is one of the most important and widely used concepts in finance and commercial real estate. In this article, you’ll learn: What Is Net Present Value (NPV)? Net Present Value (NPV) is an investment performance measure widely used in finance and commercial real estate. NPV is the difference between the present …
In finance and commercial real estate it’s simply expected that you know how to use a financial calculator. Yet, it’s surprising how many commercial real estate and finance professionals still don’t know how to properly use a financial calculator. Sometimes it’s because they didn’t learn it correctly the first time, and other times it’s because they …
What’s the difference between a recourse vs. non-recourse loan? In commercial real estate both types of loans are common depending on the stage and type of financing. In this article, we’ll take a closer look at recourse and non-recourse commercial real estate loans, as well as the “bad boy guaranty.” What is a Recourse Loan? …
In commercial real estate, a common lease structure is the triple net lease, often abbreviated as “NNN Lease”. Despite its popularity, the triple net lease structure is still commonly misunderstood. In this article, we’ll take a deep dive into the triple net lease and cover: What is a Triple Net Lease (NNN)? What is a …
The operating expense ratio provides a lot of useful insight into a commercial property analysis, but it’s not as widely used as it ought to be. The operating expense ratio is a simple ratio that’s easy to calculate and in this article we’ll take a closer look at how to calculate the operating expense ratio, …