Knowing what aspects to pay attention to while negotiating a commercial lease can be challenging. With that in mind, today we bring you a commercial lease negotiation checklist to help you stay organized. Commercial Lease Negotiation Checklist Every lease negotiation is unique. No two businesses have the same needs and goals, and no two facilities…
Rising interest rates are all over the news these days. But what is the relationship between interest rates and cap rates? In today’s post, we provide an answer. What Are Cap Rates? Cap rate (short for “capitalization rate”) is a commercial real estate indicator that measures the rate of return that a commercial property is…
California governor Gavin Newsom signed two bills into law (SB 6 and AB 2011) that will allow developers to build multifamily projects on land zoned for commercial real estate uses, such as shuttered shopping malls. “This is a moment on a journey to reconcile the original sin, the original sin of the state of California,…
If you are looking to lease a commercial property, then you must get a good grasp of CAM fees. With that in mind, in today’s post, we explain what CAM fees are and why they matter. What Are CAM Fees? The term “CAM” stands for “Common Area Maintenance.” As the name implies, CAM fees (also…
While the state of the economy and government policies are some of the key factors affecting real estate, there’s a new variable to keep in mind: a global sand shortage whose impact is already being felt in industries across the board. The Reasons Behind the Global Sand Shortage The screen you are looking at, the…
Among the many metrics used in commercial real estate, cash-on-cash return is particularly useful to gauge the rate of return of a transaction. Keep reading to learn more about cash-on-cash return, from how to calculate it to when to use it. What Is Cash-on-Cash Return? Cash-on-cash return (also known as “CoC return” or the cash…
There are many different types of properties, and understanding what makes them unique is essential to making sense of real estate. With that in mind, in this post, we talk about the different types of real estate and their characteristics. Keep reading to learn more. What Is Real Estate? Simply put, real estate is a…
While a recession hasn’t been officially declared, many economists believe that the odds of a recession in the upcoming months are high. In this post, we discuss the potential effects of a recession on commercial real estate so you know what to expect should the forecasts prove accurate. What Is a Recession? Let’s begin by…
In today’s blog post we tackle two basic concepts in commercial real estate: cap rate and Net Operating income, or NOI. Keep reading to learn more about the differences and relationship between these two metrics. What Is NOI? The term “NOI” stands for “Net Operating Income” and refers to a formula used to determine the…
The increased costs of property financing are expected to cause industrial capitalization rates to rise. In this post, we talk about the causes driving this trend and explain what it means for owners and buyers of industrial properties. Rising Interest Rates Expected To Push Industrial Cap Rates Higher The increased cost of borrowing money is…