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How Much Does it Cost to Build a Hotel

How Much Does it Cost to Building a Hotel

The investment in building a hotel could prove valuable to many investors looking to launch a new venture in a promising community. Hospitality may be a lucrative commercial real estate investment for many, but there are numerous costs to keep in mind, and those costs can amplify over time depending on the size, location, and type of project. Consider the following to learn more about … Read More

Understanding RUBS Income in Commercial Real Estate

RUBS Income

Property owners of multifamily or multi-unit commercial real estate must determine the most appropriate way to ensure utilities are paid. One option is to pay all utilities for units and charge some set amount extra to do so. A secondary method involves installing submeters at each unit to charge these costs based on actual use. However, both methods have limitations, so some investors use Ratio … Read More

What is the Minimum Commercial Loan Down Payment?

Commercial Loan Down Payment

One of the most important details of any commercial loan application is the down payment. Most investors seek to put the minimum amount down for a loan to maximize potential returns through leverage and more easily manage monthly cash flows. If you’re in the process of making an offer or securing financing, here’s what the minimum commercial loan down payment generally is.

How Do You … Read More

Commercial Real Estate Lawyer: What They Do and Why You Need One

Commercial Real Estate Lawyer

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

What are the Types of Commercial Leases?

Types of Commercial Leases

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

Tenant Improvements in Commercial Real Estate

tenant improvements

Tenant improvements affect property value, tenant satisfaction, leasing terms, insurance coverage (for the tenant), and more. If you’re involved in commercial real estate in any way, it’s essential that you understand what qualifies as leasehold improvements and what doesn’t. Here’s a look at what tenant improvements are, and the corresponding implications.

What Exactly is a Tenant Improvement?

A tenant improvement, also known as a leasehold … Read More

How Much Does it Cost to Build an Apartment Complex

How Much Does it Cost to Build an Apartment Complex

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

What is a Tenant Estoppel Certificate, and Why Is It Needed?

Tenant Estoppel Certificate

Tenant estoppel certificates are common in commercial real estate when leased properties are financed, refinanced, sold, or otherwise transferred. Tenants are often asked to sign certificates in order to confirm details of their lease for third parties.

The purpose of these certificates is to confirm the most pertinent details of a lease, usually for a third party that’s involved in the property transaction.

What is … Read More

Understanding Leasehold Estate

Leasehold Estate

Leasehold estate or leasehold property is a term often heard in relation to accounting. It refers to an asset of some type that is being leased. In commercial real estate, a leasehold is likely to be a space or building. This term is not commonly used today, but it is still a factor investors should consider when involved in commercial real estate transactions.

What Is … Read More

Understanding Pari Passu in Commercial Real Estate

Pari Passu meaning

The world of commercial real estate (CRE) is filled with complex financial arrangements, and understanding the terms involved is essential to maximizing returns and reducing risk. One of these terms,”‘ pari passu,” plays a significant role in the organization and distribution of funds within a commercial real estate transaction. Every investor who’s involved in a multi-party real estate arrangement should understand what’s meant by pari … Read More