What is Rent Abatement in Commercial Real Estate? Free Rent?
What is Rent Abatement in Commercial Real Estate? Free Rent? A free rent period, also known as an abated rent or rent abatement, is a common feature in commercial real estate leases. This provision allows the tenant to occupy the leased space for a specific period without paying rent or with a reduced rent. Here’s […]
Points to Consider Before Investing in Commercial Real Estate
Points to Consider Before Investing in Commercial Real Estate CRE continues to gain popularity as an alternative investment class. However, not all commercial real estate ventures are created equal. Success or failure in this domain hinges on understanding timing, asset, and how you’re going to invest. Here are a few considerations to keep in mind […]
Active Income VS. Passive Income
Active Income VS. Passive Income Active income and passive income are two types of earnings that individuals can generate. They differ in the level of effort required to earn and maintain them. Active Income Definition: Active income is the money earned from performing a service or participating in a business in which an individual is […]
Adjusted Basis?
Adjusted Basis? The adjusted basis is a tax-related term that refers to the original cost of an asset, adjusted for various factors that can affect its value over time. This adjusted basis is used to determine the gain or loss when the asset is sold or disposed of. The adjustments typically include costs that increase […]
Silver Tsunami?
Silver Tsunami? The term “silver tsunami” is often used to describe the demographic phenomenon of an aging population (closely tied to the baby boomer generation, which refers to individuals born between 1946 and 1964), particularly the increasing number of individuals reaching retirement age. As this large cohort of baby boomers ages, it contributes to the […]
What’s a Parking Ratio or Parking Index?
What’s a Parking Ratio or Parking Index? Parking ratio or parking index in commercial real estate is a crucial metric that assesses the relationship between the number of parking spaces available and the total leasable square footage of a commercial property. This ratio is expressed numerically and helps gauge the adequacy of parking facilities, a […]
Commercial Real Estate: Trade Fixtures
Commercial Real Estate: Trade Fixtures Trade fixtures play a crucial role in shaping the functionality and appeal of commercial properties. Trade fixtures are essential components that businesses install to carry out their operations effectively. Understanding the various types of trade fixtures is vital for both property owners and tenants to navigate lease agreements and optimize […]
Title Companies in Commercial Real Estate
Title Companies in Commercial Real Estate Title companies are integral to the commercial real estate (CRE) industry, serving a vital role in property transactions. Their primary responsibility is to conduct thorough research on the property’s title and ensure that it is clear of any encumbrances or disputes. This process is known as a title search […]
Tenancy at Sufferance VS. Tenancy at Will
Tenancy at Sufferance VS. Tenancy at Will “Tenancy at Sufferance” and “Tenancy at Will” stand out as distinctive scenarios that both landlords and tenants should comprehend to navigate the waters of lease arrangements. Whether you find yourself as a tenant navigating post-lease occupancy or a landlord managing an open-ended rental arrangement, understanding these concepts is […]
Cash Flow in Commercial Real Estate
Cash Flow in Commercial Real Estate Understanding and managing cash flow is paramount for success in commercial real estate. Cash flow is the lifeblood of any business, and in the context of real estate, it plays a crucial role in determining the profitability and sustainability of an investment. Let’s touch on the nuances of cash […]
