8 Commercial Real Estate Lease Clauses to Know
8 Commercial Real Estate Lease Clauses to Know A commercial real estate lease is a contract between a tenant and a property owner that entitles one to lease a specific space in return for a set monthly rental payment. A lease agreement can be lengthy and incredibly dense with legal language, which can make such […]
What is a Base Year Expense Stop?
Commercial real estate leases are dense legal documents that contain dozens of clauses pertaining to how a space may be used, when it may be occupied, and how much space the tenant is entitled to use. One of the most important lease clauses outlines the amount of rent that the tenant is required to pay […]
What is the Absorption Rate in Commercial Real Estate?
Often, a value-add investment strategy involves a significant renovation and/or the purchase of a property with a high vacancy rate. In either case, the investor/buyer must forecast how long the renovation will take and/or how long it will take to fill the space with rent-paying tenants. This amount of time is heavily dependent upon the […]
Introduction to Commercial Real Estate Ground Leases
Much of the discussion around commercial real estate (CRE) investment tends to focus on purchase and sale transactions. While this transaction type accounts for much of the CRE investment activity, it isn’t the only type. Another common, but frequently misunderstood type involves a “ground lease.” What is a Ground Lease? A ground lease, sometimes called […]
What is a Lease Abstract in Commercial Real Estate?
If there is one thing that all commercial real estate (CRE) assets have in common, it is tenants with leases. Each lease contains key information about the tenant, their lease term, the amount of rent they pay, and what amount of the property’s operating expenses they are responsible for paying. Obtaining this information is an […]
What You Should Know About Commercial Real Estate Property Reserves & Tenant Improvement Allowances
When evaluating a potential commercial property investment, much of the pre-purchase due diligence tends to focus on the operating expenses associated with running a CRE asset. Typically, these include things like: property taxes, insurance, utilities, maintenance, and property management. While these are important to consider, they tend to shift the focus away from two potentially […]
