…Because commercial sales often involve larger sums of money and are more complex, escrow in this setting is formal and tightly controlled. Capital for a commercial transaction will typically come…
…your income. For example, if your vacancy creeps above your 5% assumption, and rental income drops, that 1.30x will be violated. We’ll take a look at a vacancy stress-test below….
…them a right of ingress and egress as well. One typical example is the easement utility companies have on most properties. This easement allows them to enter a property to…
…good, but let’s do a little stress-testing. What would give you the greatest heartburn with this deal? How about SmallerTenant, LLC’s managing member goes to federal prison for wire fraud…
…Components Although waterfall structures vary widely, there are several commonly used waterfall model components. Before we dive into our step-by-step waterfall model example, let’s first take a look at some…
…10 common “boilerplate” commercial lease components with examples and items to look out for. Boilerplate Legal Definition The term boilerplate, as it’s used in law, has been defined as “A…
…how the subject company compares to other companies in their industry, what is the industry outlook is, etc. Repayment Analysis This is the most important section. In this section, the…
…of the alternatives to one highest and best use of the property. Four Tests for Highest and Best Use You can use the following four tests to find the highest…
…However, assuming we have some other submarket data to compare this to we can check whether or not it’s in line with comparable properties. The important take away here is…
…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 the dent made by the…