David Luke

Every landlord who’s held commercial real estate knows the value of a good tenant and understands that good tenants deserve incentives. One way that landlords can incentivize well-qualified tenants is with a credit tenant lease.

What is a Credit Tenant?

A credit tenant is a tenant that has a high credit rating, as determined by one of the major rating agencies (e.g. Moody’s or Standard … Read More

Commercial real estate investors need as much information as possible when deciding what to invest in and how to do so. Numerous types of financial data are available to allow for that, including modified internal rate of return (MIRR). This specific metric enables investors to determine if a property is a good investment or one that carries too much risk. Therefore, understanding this metric is … Read More

Commercial mortgage brokers hold a central role in commercial real estate, as almost every deal goes through them during the financing process. Brokers must understand investors’ and property owners’ needs, the lenders and financing programs available, and how to match the right borrower with the right lender.

If you have financial acumen and are interested in commercial real estate, this can be a promising way … Read More

Owning commercial real estate can be a solid investment strategy, but it’s not right for every business or situation. Sometimes businesses find themselves owning a building, but wanting to focus on their core competencies. A sale leaseback may be advantageous in these situations, allowing businesses to focus on what they do while also freeing up capital. What is a Sale Leaseback?

A real estate sale … Read More

Investing frequently requires substantial capital, and it’s not uncommon to secure funds from multiple sources. Capital stack refers to the various layers of funding used to purchase, develop, and operate a commercial property. If you’re doing any of these things with commercial real estate, and especially if you’re purchasing, you must understand the property’s capital stack.

What is Capital Stack in Real Estate?

Capital stack … Read More

Commercial real estate asset management is the method used to determine how effective a project or property is in achieving the goals the investor sets. In short, it is one of the most important ways to gather information to make a decision about assets before purchase or, in some cases, in the decision to liquidate.

What is Asset Management in Commercial Real Estate?

Asset management … Read More

Commercial real estate investors are generally responsible for the maintenance and repair of the buildings they purchase unless there’s an absolute net lease in place. Using an absolute net lease shifts these responsibilities onto the tenant, which can result in easier operations, more lenient financing, and several other benefits.

What is an Absolute Net Lease?

An absolute net lease is one of the strictest commercial … Read More

Real estate investors must consider how much rent they can charge for a property prior to investing in the property. However, there is often a difference between what this estimate is and what the actual rent earned occurs. This is called the loss to lease, or LTL. It is an important calculation for all property investors to consider.

What Does Loss to Lease Mean?

Loss … Read More

Occupancy rate is a metric that helps real estate investors and managers assess a property’s performance and pricing. Here’s a guide to understanding occupancy rates for hotels and similar properties, including how to calculate it and what can be learned from it.

What is Occupancy Rate in Commercial Real Estate?

Occupancy rate is a standard metric used within the hotel industry, and it’s also useful … Read More

Selling commercial real estate is significantly different than selling residential property. Though the process of transferring real estate from person to person may be similar, there are numerous other factors owners must take into consideration before simply deciding to list their commercial property for sale, including understanding their target buyer, what type of property they are selling, and the value of the property.

How Long … Read More