In commercial real estate, there are various lease structures available to accommodate different tenant and landlord needs. Two of the most widely used lease types are gross leases and net leases, which differ primarily in how property expenses are allocated between...

Triple net properties—commonly abbreviated as NNN—represent a particular structure within commercial real estate where tenants take on not only the base rent but also additional financial responsibilities, making this investment model unique and appealing for certain...

In commercial real estate investing, using a variety of performance metrics is crucial for gaining insights and making informed comparisons between potential investments. Two commonly used metrics—cash on cash return (CoC) and internal rate of return (IRR)—help...

Not sure why it was overlooked, but I’ve also backed it up on Dropbox. When financing commercial real estate, lenders typically apply several fees—one of the most common being the loan origination fee.   What Is a Loan Origination Fee? This fee is charged to cover the...

What Is Equity Multiple? Equity multiple is a key metric used to measure the overall return on an investment. It's particularly popular in private equity and commercial real estate because it offers a straightforward way to gauge performance. Few metrics offer such a...

When analyzing the financial health of commercial real estate properties, it's common to look at performance over specific timeframes—both past and projected. One of the most widely used retrospective periods, especially for multifamily properties, is the Trailing...

Commercial mortgage agreements often contain specific provisions to protect lenders’ financial interests. One such provision is a prepayment penalty known as yield maintenance. This penalty is designed to ensure that the lender receives the expected return on...

An Overview of Tenancy in Common Tenancy in Common (TIC) is a form of property ownership where multiple parties hold individual interests in the same commercial real estate asset. While it’s a fairly common structure, it carries both advantages and potential...

Estimating a commercial property’s potential income involves more than simply multiplying the monthly rent by twelve. This basic calculation overlooks additional income streams and potential costs, making it an incomplete reflection of the property’s true revenue...

A commercial cash-out refinance allows property investors to access the equity tied up in their real estate, which would otherwise remain illiquid. While selling the property is one way to unlock equity, refinancing offers an alternative with several potential...

When evaluating investment properties, understanding vacancy rates is essential. This metric reveals how frequently units remain unoccupied and for how long. It also offers insight into the property's management efficiency and overall desirability. For those...

Multifamily investors and developers utilizing Low-Income Housing Tax Credits (LIHTCs) must adhere to specific regulations regarding how they use the land or develop their projects. One key requirement of LIHTCs is compliance with rent limits for a designated period,...