Return on Equity in Commercial Real Estate: A Guide by FNRP

A typical commercial real estate investment is financed with a combination of debt and equity.  In most cases, debt comes from a loan and equity comes from one or more investors who inject capital into the deal.  Naturally, these investors will want to know what their potential return on investment is.  This is measured using […]

Equity Multiple in Commercial Real Estate Explained

Commercial Real Estate Equity Multiple Explained

When evaluating the potential return produced by commercial real estate (CRE) investment opportunities, there are a variety of metrics that can be used, each of which come with their own pros and cons.  One of those metrics, the Equity Multiple, is the subject of this article. What is the Equity Multiple? The Equity Multiple is […]

Understanding Present Value and Net Present Value

Understanding Present Value and Net Present Value

The basic premise of a commercial real estate investment is relatively simple.  An investor purchases a property and leases the space in it to other individuals or businesses.  Lease income is used to pay the property’s operating expenses and any remaining funds are distributed back to the property owners.  Over a multi-year investment period, the […]