Whether you are a landlord or a tenant, one of the crucial terms to consider when negotiating a lease is the renewal clause. The renewal clause grants the tenant an option, or several consecutive options, to renew the lease for a set term or several set terms after the expiry of the initial term of…
As the owner of commercial property, you likely are tasked with a number of financial obligations when it comes to maintaining or making improvements to the building or land you purchased. You want to preserve the value and make a return on your investment. So, if you have the opportunity to save significant tax dollars…
If you have entered into a lease agreement for commercial retail, warehouse, office space, or any other building or facility used for business purposes, you may find yourself in a situation where changed circumstances make one or more provisions of the original lease unworkable or undesirable. When both parties to a commercial lease (the landlord…
When owning a commercial property, there are two main objectives to be accomplished: preserving the value of the property and generating enough revenue to return a profit. The best way to tackle these two objectives, is through proper maintenance. With proper maintenance of your commercial property you can more efficiently preserve its value and increase…
In today’s complex real estate markets, selecting the right commercial property management firm is one of the most important decisions investors can make. Trained, experienced, and creative real estate managers can obtain the maximum return on an asset by improving cash flow, retaining tenants, and increasing value. Frequently, investors seek advice on property management firms…
The opportunity to own property is seen by many as a rite of passage — and it’s even better when it can make you money. That’s where commercial real estate investing often comes in. The U.S. construction market was worth approximately $1,162 billion in 2016, meaning that there’s really no shortage of commercial buildings in…
One of the biggest mistakes investors make when financially evaluating an investment property is that they fail to include a capital expense budget for the property. When acquiring an investment property, it is critical that you have a capital expense budget as well as a recurring replacement reserve factored into the equity you will need…
Net Operating (NOI) is a calculation of the income generated by a real estate investment. It measures the amount of cash flow generated by an investment property after operating expenses, but before principal and interest payments, capital expenditures, depreciation, and amortization. Investors use NOI to determine the value and profitability of an income-producing property. What…
With commercial rent on a downturn and plenty of leasing space available, understanding the basics of a commercial lease can be essential to keeping commercial property afloat. The flexibility inherent in a commercial lease agreement allows for the ability for all sides to receive what they want through negotiation; however, that flexibility comes with more…
When you lease commercial space, you pay for more than just the square footage you will occupy. Many, if not most, commercial leases are “triple net” (NNN) leases which require the tenant to pay for or contribute to property taxes, insurance costs, management fees, and operating costs for the entire facility. These additional charges are…