What Are The Tax Benefits of Commercial Real Estate Investment?
Discover how commercial real estate investors leverage depreciation and 1031 Exchanges to reduce tax liabilities and maximize returns.
Understanding the Triple Net Lease Structure
Explore the triple net lease (NNN) structure in commercial real estate. Learn how tenants handle taxes, insurance, and maintenance, and why investors value NNN leases for stable, low-maintenance income.
What is a Cap Rate in Commercial Real Estate?
Understand the cap rate in commercial real estate investing. Learn how to calculate it, what it indicates about property value and risk, and how to use it effectively in investment analysis.
What is the Debt Service Coverage Ratio?
Nearly all commercial real estate transactions are financed with some combination of debt and equity. The equity comes from the potential property owner and/or their investors while the debt comes from a bank or non-bank lender. The exact amount of each can vary by transaction, but equity typically consists of 15% – 25% of the […]
Understanding Management Intensity
Fundamentally, the principles of commercial real estate investment are fairly simple, an individual or company purchases an investment property, like an office building or retail property, and leases the space in it to other individuals or companies for a rental fee. As long as those fees are more than it costs to operate the property, […]
Cap Rates in Commercial Real Estate: Formula & Explanation
When considering the purchase of a commercial real estate asset, all investors will use a property’s existing cash flows to create a “proforma” financial projection of future cash flows. The proforma, which includes allocations for income and expenses, serves as the basis for calculating the property’s potential return on investment. A diligent real estate investor […]