Fixed Costs vs Variable Costs in Commercial Real Estate
When evaluating the potential purchase of a commercial real estate asset, one of the most important tools is the financial model that is constructed to estimate potential returns. Broadly, these models have three main components: Income, Expenses, and Debt Service. For the purposes of this article, the focus is on income and expenses. A property’s […]
Understanding the Triple Net Lease Structure
One thing that nearly all commercial real estate properties have in common is tenants with leases. These leases, and the contractually mandated income that they produce, are the lifeblood of a commercial asset. But, the structure for each individual lease can vary by tenant and property type so it is critically important to understand the […]
