…a real estate development project, before completing a more in-depth analysis. In this article, we’ll take a closer look at the development spread and walk through an example of how…

When trying to finance a real estate project, it’s common for a borrower to approach multiple lenders for a loan. Unfortunately, it’s equally as common for those same lenders to…

…article, we’ll walk through several examples that will show you how the residual technique is used in commercial real estate valuation. Land Residual Technique Using Direct Capitalization The land residual…

Forecasting industrial real estate supply and demand is an important task for many commercial real estate professionals. For example, developers interested in constructing a new industrial park need to consider…

…real estate development, so long as the commercial component (as opposed to any residential components) create at least 20% of the project’s gross income Community facilities Non-profit facilities Skilled nursing…

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…

…when using the WACC formula with multi-year yield rates. Single Year WACC For example, let’s use the return on debt and return on equity in our previous single year example….

…value: Comparable Sales (Comps) – This is the same sales comparison approach mentioned above that is used by appraisers. Typically investors will compare similar properties on a per square foot…

…language, a borrower generally has no right to defease. Here is an example of typical defeasance language. There are a couple of items a borrower may want to negotiate in…

…submitting a personal financial statement and tax return each year, as well as a rent roll, operating statements, and signed leases. Mini-Perm Loan Example A mini-perm loan is typically used…