The GIS System: Why It’s Used & How It Can Help in Commercial Real Estate
The GIS System: Why It’s Used & How It Can Help in Commercial Real Estate A GIS, or Geographic Information System, is a system designed to capture, store, analyze, manage, and present spatial or geographic data. In simpler terms, it is a framework for gathering, managing, and analyzing data that is tied to locations on […]
3 Common Valuation Methods in Commercial Real Estate
3 Common Valuation Methods in Commercial Real Estate In commercial real estate, there are three commonly used approaches to value a property: the cost approach, the sales comparison approach, and the income approach. Each approach provides a unique perspective on the property’s value and is suited to different types of properties and market conditions. Let’s […]
Different Types of Hotels
Different Types of Hotels The hospitality sector stands out as a multifaceted and ever-evolving domain. Hotels (a pivotal component in the commercial real estate industry) come in various types, each catering to unique preferences and needs. Investors, developers, and enthusiasts alike can benefit from understanding the diverse landscape of hotels. Let’s take a quick look […]
Common Area Maintenance (CAM) Fees + Formula
Common Area Maintenance (CAM) Fees + Formula Understanding Common Area Maintenance (CAM) fees is crucial for both landlords and tenants. CAM fees play a pivotal role in maintaining shared spaces and ensuring the overall well-being of commercial properties. What are CAM Fees? Common Area Maintenance (CAM) fees are charges levied by landlords to cover the […]
Commercial Real Estate Math: A Quick Intro
Commercial Real Estate Math: A Quick Intro Number crunching is as crucial as location, location, location! Whether you’re a seasoned investor or a newcomer to the field, understanding the key mathematical concepts in commercial real estate can make or break a deal. Let’s take a quick glimpse into some fundamental math behind commercial real estate […]
Brownfield Sites vs. Greenfield Sites
Brownfield Sites vs. Greenfield Sites Brownfield sites and greenfield sites are terms used in commercial real estate to describe different types of land for development. Here are a few differences between the two: Previous Development Brownfield Site: A brownfield site refers to land that has been previously developed and may have existing structures or infrastructure. […]
Expense Stops | Commercial Real Estate Leases
Expense Stops | Commercial Real Estate Leases An expense stop in commercial real estate refers to a predetermined limit or cap on certain operating expenses that a tenant is responsible for paying within a leased space. Typically found in commercial lease agreements, an expense stop helps delineate the extent of financial responsibility for operating costs […]
Bankruptcy Overview: Chapter 7 & Chapter 11
Bankruptcy Overview: Chapter 7 & Chapter 11 In the context of commercial real estate, bankruptcy refers to a legal status that a business entity may enter when it is unable to repay its outstanding debts. The primary purpose of bankruptcy is to provide a structured and fair process for the resolution of financial difficulties, ensuring […]
Amortization in CRE: Understanding & Utilizing Amortization Schedules
Amortization in CRE: Understanding & Utilizing Amortization Schedules Financial concepts play a crucial role in shaping investment strategies. One such fundamental concept is amortization, which forms the backbone of many financing structures. What does amortization mean? Let’s explore the significance of the amortization schedule, and discuss why and how it is used in the realm […]
What is a Balloon Payment? Where are they typically seen?
What is a Balloon Payment? Where are they typically seen? A balloon payment is a large, lump-sum payment that is typically associated with financing arrangements such as loans or mortgages. In the context of commercial real estate, it is often used in certain types of loans to reduce monthly payments and provide flexibility to borrowers. […]
