David Luke

The landlord-tenant relationship may be arranged in several different ways in commercial leases. Tenancy at will is one of the most flexible arrangements, but flexibility has both its advantages and disadvantages. Here’s a look at what tenancy at will offer both landlords and tenants.

What is Tenancy at Will?

A tenancy at will is a rental agreement in which either the landlord or the tenant … Read More

All parties involved in commercial real estate transactions and investments should consult a commercial real estate attorney at times. Here’s a look at what these lawyers do, why investors need them, and how to choose one that’s best qualified to serve you.

What a Commercial Real Estate Lawyer Does

Commercial real estate lawyers specialize in the legal aspects of buying, selling, leasing, and managing commercial … Read More

Real estate investors commonly need to rely on a commercial lease to create a legally binding contract with their clients. Understanding the types of leases available is a big part of ensuring the best long-term results.

Understanding Commercial Leases

A commercial lease may not seem like a complicated process and may seem to be much like a traditional residential lease. However, there are differences that … Read More

The decision to invest in real estate does not always come from purchasing pre-existing property. With a better understanding of multifamily apartment costs, some investors may hope to build from the ground up.

Stages of Apartment Complex Construction

Building an apartment complex requires numerous steps. The process typically involves three phases.

Pre-Construction

The pre-construction process is the planning and development phase. The focus here is … Read More

The size of a commercial investment property is one of the most important factors when projecting the property’s potential revenues. This is perhaps the most important factor aside from location and type of property, for size directly impacts the potential rents that a property can generate.

Specifically, investors should consider the gross leasable area (GLA) of a property when projecting rents and revenues. GLA best … Read More

Rational investors are seeking to grow their assets over time, and assessing the time value of money is an essential step when evaluating different investment opportunities. Net present value (NPV) allows investors to include the time value of money in property valuations. It’s a must-know number when evaluating a commercial real estate property or portfolio.

What is Net Present Value (NPV)?

Net present value is … Read More

A cross-collateral loan could be an option for investors who own assets and want to extend their portfolio. Yet, like most opportunities, there are some risks to understanding this process. For those who have collateral, it is worth taking a closer look at how cross-collateral loans could help provide an opportunity to invest at a lower cost.

What Is Cross Collateralization in Commercial Real Estate? … Read More

Investors considering the purchase of a real estate for rental purposes must determine the estimated value of that property. One component of that process is to evaluate the potential income a property can offer. This is where the gross potential rent formula is helpful.

What is Gross Potential Rent?

Gross potential rent is a metric that investors use to determine the amount of expected income … Read More

Commercial property investors need to offer potential tenants attractive terms, or else risk having the best tenants sign leases elsewhere. Rental concessions are one common way to entice tenants with more attractive terms. Here’s a look at what lease concessions are, their advantages and disadvantages, and when you might use them.

What is a Rent Concession?

A rental concession is a temporary or permanent modification … Read More

A partially amortizing loan is not an uncommon tool for commercial real estate investors because of the benefits it offers. All loans amortize in some way, no matter if they are commercial loans or not. There are two main options: fully amortizing and partially amortizing. Understanding the difference helps ensure investors make the best decisions about their specific needs.

What Is Amortization on a Commercial … Read More