Subleasing: What is it? Who’s Involved?
Subleasing: What is it? Who’s Involved? Subleasing, also known as subletting, is a real estate arrangement where a tenant (the original tenant or sublessor) rents all or a portion of their leased premises to a third party (the subtenant or sublessee) for a period of time that is shorter than the original lease term. Subleases […]
Storage Units: Who’s Using Them & Why Investors Like Them
Storage Units: Who’s Using Them & Why Investors Like Them Storage units, also known as self-storage facilities or storage warehouses, are a subset of commercial real estate that provides rental space for individuals and businesses to store their belongings or inventory securely. These facilities offer a range of storage unit sizes, from small lockers to […]
Depreciating Your Commercial Property + The Tax Cuts & Jobs Act of 2017
Depreciating Your Commercial Property + The Tax Cuts & Jobs Act of 2017 Depreciation in commercial real estate is a fundamental principle that allows property owners to recover the cost of their investment over time. The Tax Cuts and Jobs Act of 2017 (TCJA) also brought about some changes that significantly benefit those who invest […]
What is a “Load Factor” in Commercial Real Estate?
What is a “Load Factor” in Commercial Real Estate? In commercial real estate, the term “load factor” (also known as “common area factor,” “add-on factor,” or “loss factor”) refers to the proportion of shared or common spaces within a commercial property that is allocated to a tenant in addition to their leased usable square footage. […]
1031 Exchange | Commercial Real Estate
1031 Exchange | Commercial Real Estate A 1031 exchange, also known as a like-kind exchange or a tax-deferred exchange, is an essential concept in commercial real estate investment. It allows real estate investors to defer capital gains taxes when they sell a property and reinvest the proceeds into another property of a like kind. Here’s […]
What’s a Broker Opinion of Value (BOV)?
What’s a Broker Opinion of Value (BOV)? A Broker Opinion of Value (BOV) is a professional assessment of the estimated market value of a real estate property, typically provided by a licensed real estate broker or agent. It is an informal and non-appraisal estimate of a property’s worth. The purpose of a BOV is to […]
How Does a Commercial Broker Determine the Sales Price of My Property?
How Does a Commercial Broker Determine the Sales Price of My Property? Commercial real estate brokers use a variety of methods and factors to determine the price of a property. The process typically involves a combination of market research, analysis, and their experience in the regional real estate market. Here are some key factors and […]
Should I Buy or Lease Commercial Property?
Should I Buy or Lease Commercial Property? Deciding whether to buy or lease commercial real estate depends on several factors unique to your business, financial situation, and long-term goals. Here are some considerations to help you make an informed decision: Leasing Commercial Real Estate Buying Commercial Real Estate To make the best decision for your […]
In what ways is remote work effecting the commercial real estate industry?
In what ways is remote work effecting the commercial real estate industry? The following points capture the major trends and changes in the commercial real estate sector due to the rise of remote work. 1.) Reduced Office Space Demand: As more employees work remotely, companies have downsized their office space needs. This has led to […]
What’s a Value-Add Investment?
What’s a Value-Add Investment? A value-add investment in commercial real estate is a strategy where an investor acquires a property that is not operating at its full income-generating potential, makes improvements, and implements management changes to increase the property’s value and rental income. The primary goal of a value-add investment is to enhance the property’s […]
