Does the NAR Settlement Affect Commercial Real Estate?
Does the NAR Settlement Affect Commercial Real Estate? Recently, the National Association of Realtors (NAR) reached a settlement regarding antitrust lawsuits that focus on commission structures in residential real estate transactions. These lawsuits raised concerns about the transparency and competition in how commissions, particularly buyer’s agent commissions, are handled in residential sales. This has led […]
What’s the Difference Between NOI and Net Income?
What’s the Difference Between NOI and Net Income? When evaluating commercial real estate investments, two key financial metrics often come into play: Net Operating Income (NOI) and Net Income. Though they might seem similar, they serve different purposes and provide distinct insights into a property’s financial health. The differences between these metrics is crucial for […]
Can Plane Hangars Be a Good Investment?
Can Plane Hangars Be a Good Investment? Investing in plane hangars may not be the first thing that comes to mind when you think of commercial real estate, but it’s an intriguing niche that has been gaining traction among investors. With the rise in private aviation, the demand for hangar space has been steadily growing. […]
Types of Guarantees in Commercial Leases
Types of Guarantees in Commercial Leases When negotiating a commercial lease, guarantees often play a crucial role in providing additional security to landlords. Guarantees ensure that, even if the tenant defaults on their obligations, the landlord can still recover lost rent, expenses, or damages. Understanding the different types of guarantees is essential for both tenants […]
What Is a Good ROI in Commercial Real Estate?
What Is a Good ROI in Commercial Real Estate? When investing in commercial real estate, understanding Return on Investment (ROI) is critical for evaluating profitability. But what exactly makes an ROI “good”? The answer isn’t always straightforward, as several factors come into play and there’s no universal benchmark. In this article, we’ll explore what ROI […]
How Much Are Closing Costs in Commercial Real Estate?
How Much Are Closing Costs in Commercial Real Estate? Closing costs can be a significant part of any commercial real estate transaction, impacting the overall financial picture. While the specifics can vary widely depending on the deal and location, it’s essential to have a general understanding of what these costs might entail. What Are Closing […]
What is a Credit Tenant? Why Does It Matter in Commercial Real Estate?
What is a Credit Tenant? Why Does It Matter in Commercial Real Estate? In commercial real estate, a creditworthy tenant is one that demonstrates a strong financial standing, making them a low-risk occupant for landlords. Creditworthiness is typically assessed through a combination of factors, including credit scores, financial statements, and a tenant’s history of lease […]
What is a Proforma in Commercial Real Estate and Why Does It Matter?
What is a Proforma in Commercial Real Estate and Why Does It Matter? In commercial real estate, a thorough understanding of financial metrics is crucial for investors, developers, and brokers alike. One of the most important financial tools used in evaluating the viability of a real estate project is the proforma. Whether you’re considering purchasing […]
Why Small Bay Industrial Space is So Attractive to Users and Investors
Why Small Bay Industrial Space is So Attractive to Users and Investors The commercial real estate market is constantly evolving, and one sector that has garnered significant attention in recent years is small bay industrial space. These versatile, smaller-scale industrial properties, typically ranging from 1,000 to 10,000 square feet, are becoming increasingly attractive for both […]
How Lowering Interest Rates Affects the Commercial Real Estate Market
How Lowering Interest Rates Affects the Commercial Real Estate Market Interest rates play a crucial role in shaping the commercial real estate (CRE) market. When central banks lower interest rates, the implications can ripple through various aspects of the market, influencing investment, financing, and overall market dynamics. This article explores the positive and negative effects […]