Exit Cap Rate in Commercial Real Estate
Exit Cap Rate in Commercial Real Estate Investors often rely on various metrics to assess the performance and potential profitability of their investments. Among these metrics, one that holds significant importance is the exit capitalization rate, or exit cap rate. This metric serves as a crucial tool for estimating the value of a commercial property […]
Commercial Zoning: PRC, PNC & PCC
Commercial Zoning: PRC, PNC & PCC The zoning classifications PRC, PNC, and PCC refer to different zoning designations used in urban planning and land use regulation in Scottsdale, Arizona. Here’s a brief breakdown of each: 1.) PRC (Planned Regional Center): – “This district is intended to provide for regional shopping, business, and residential uses within […]
10 Commercial Real Estate Lease Terms to Know
10 Commercial Real Estate Lease Terms to Know Understanding the intricacies of lease agreements is essential for both landlords and tenants. Whether you’re a seasoned investor or a budding entrepreneur, familiarizing yourself with common lease terms will aid you in making informed decisions and navigating the leasing process with confidence. Let’s take a look at […]
How Does A Percentage Lease Work?
How Does A Percentage Lease Work? Leasing agreements come in various forms, each designed to suit the needs of both landlords and tenants. One such arrangement especially in retail settings, is the percentage lease. Unlike traditional leases where tenants pay a fixed rent, percentage leases offer a structure where rent is tied to the tenant’s […]
Why Is My Commercial Rent Increasing?
Why Is My Commercial Rent Increasing? The ability of a landlord to increase the price of a commercial lease depends on several factors, such as: the terms outlined in the lease agreement and market conditions. Here are some common methods landlords may use to increase the price of a commercial lease: 1.) Rent Escalation Clause: […]
Big Tech & Office Space
Big Tech & Office Space 1.) Demand for Office Space: Big tech firms, with their past rapid growth and expansion, have been major drivers of demand for office space in tech-centric cities such as Silicon Valley, Seattle, and San Francisco. Said demand led to increased competition for prime office real estate and, in some cases, […]
Commercial Real Estate Doom Loop?
Commercial Real Estate Doom Loop? The term “doom loop” evokes a sense of foreboding—a spiral of decline that threatens to engulf investors, developers, and entire markets. While commercial real estate has long been heralded as a lucrative investment avenue, the sector is not immune to the cyclical nature of economic forces and market dynamics. Understanding […]
The 1% Rule | Commercial Real Estate
The 1% Rule | Commercial Real Estate Success in commercial real estate often hinges on the ability to make informed decisions about property acquisitions. Among the arsenal of tools available to investors, one principle stands out as a guiding light: the 1% Rule. This simple yet powerful guideline helps investors assess the potential profitability of […]
10 Common Commercial Lease Clauses
10 Common Commercial Lease Clauses In commercial real estate leases, certain clauses are commonly included to address various aspects of the landlord-tenant relationship, protect both parties’ interests, and clarify rights and responsibilities. Here are the top 10 common clauses found in commercial real estate leases: 1.) Rent Clause: This clause specifies the amount of rent […]
Common Cost Segregation Questions
Common Cost Segregation Questions Commercial real estate investment often involves navigating various financial considerations, from acquisition costs to ongoing operational expenses. One strategy that savvy investors utilize to maximize returns and unlock hidden value is cost segregation. What is Cost Segregation? Cost segregation is a strategic tax planning tool that allows commercial real estate owners […]
