Insurance for Commercial Property: What’s Covered and What’s Not?
Any investment in commercial property is a significant one, and even the most well-managed properties suffer damage. Commercial insurance is a necessary investment, yet many investors don’t know much about their coverage nor how to take full advantage of the protections it provides.
What is Commercial Property Insurance?
Commercial property insurance is much like any other form of insurance. It is a policy taken out … Read More
A Guide to Investing in Commercial Distressed Properties
Commercial real estate presents a wealth of opportunities, but perhaps none offer potential returns equal to those of commercial distressed properties. For those who know how to identify promising distressed properties and purchase them, there are often substantial gains to be made.
If you’re still unfamiliar with this aspect of commercial real estate investing, here’s a guide to investing in commercial distressed properties.
What is … Read More
How to Determine the Highest and Best Use of a Property
Commercial real estate investors are generally familiar with appraisals, which seek to value a property accurately. Appraisals are used for home purchases, vacant land purchases, commercial real estate purchases, and the evaluation of most other properties.
The highest and best-use appraisal (HBU appraisal) is especially important in commercial real estate. This specific type of appraisal calculates property value according to how a property can be … Read More
What is Unlevered Free Cash Flow in Real Estate?
Real estate investments require evaluation from multiple angles and using multiple metrics. One metric that’s gained increased popularity in recent years is unlevered free cash flow (UFCF). This calculation provides a unique perspective on an investment’s financial performance, focusing on how much cash flow a property generates.
What is an Unlevered Free Cash Flow in Real Estate?
Unlevered free cash flow calculates the cash flow … Read More
A Comprehensive Guide to Mixed-use Commercial Property
Diversification has an important place in any long-term real estate portfolio. Commercial real estate offers one way to diversify if your portfolio is overexposed to small residential, and there are many opportunities to diversify within commercial real estate. One of the most effective is mixed-use commercial property.
What is Mixed-Use Commercial Property?
Mixed-use commercial property is a development that combines at least two different uses, … Read More
What are CAM Charges?
CAM charges are a common term seen on many commercial leases and in various transactions. It refers to the expenses the property owner charges back to the tenant for maintaining the specific area described. There are many factors to consider related to CAM, and understanding how this relates to any contract or lease agreement is critical prior to entering into such an agreement. Consider what … Read More
What is Commercial Equity Line of Credit (CELOC)?
Commercial real estate investors have access to many different financing programs when they first purchase a property, but sometimes capital’s needed after a property is already owned. A commercial equity line of credit (CELOC) allows investors to use their equity as a means of attaining as-needed financing.
Understanding Commercial Equity Line of Credit (CELOC)
A commercial equity line of credit is a financing option that … Read More
What Does PSF Stand for in Real Estate?
What is PSF in real estate? Per square foot, often called just PSF in commercial real estate, is a very important term to understand when buying, leasing, or managing these properties. It is a method often used in calculating the real estate rental value and communicating the size and scope of a property for sales transactions. Understanding what it is and the PSF rate within … Read More
What is Covered Land Play?
A covered land play is a real estate strategy. It is a valuable investment concept that focuses on the increased value a property represents that’s covered. Though a bit more complex, it helps to see how this may work.
What Is a Covered Land Play?
A covered land play is an investment strategy focused on the value of a piece of property. To understand it, … Read More
Tenancy at Will: Definition and Pros and Cons
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