ROIC – Return on Invested Capital

ROIC – Return on Invested Capital

Another metric utilized by investors is the ROIC (Return on Invested Capital) analysis.  In order to reduce risk exposure, it’s important to understand when capital is invested and how quickly that capital is returned to you.  The faster those invested funds are...
Holding Period and Your Investment Goals

Holding Period and Your Investment Goals

When doing investment analysis on a property it’s easy to focus on the numbers relating to the returns on investment or the strength of the tenant(s).  However another important factor to consider is how an investment fits into your overall investment goals and...
The Power of Leverage

The Power of Leverage

Financial leverage is a very powerful tool.  Much like the Egyptians moved massive stones using a only a fulcrum and lever to build the pyramids, financial leverage allows investors to make purchases larger than their capital invested.  We discussed this idea in a...
Commercial SWOT Team

Commercial SWOT Team

Facing investment dilemma?  Unsure about which property to go after or if it’s a good fit for your portfolio?  Perhaps it’s time to bring in the SWOT analysis team.  SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.  It’s an...
Understanding Vacancy and Credit Losses

Understanding Vacancy and Credit Losses

Previously we discussed the beauty of the Annual Property Operating Data and how it’s essential to understanding the health of a building.  Now we’ll dive into the particulars of the line items in the APOD to better understand what we’re looking at. ...
Lease Options to Renew

Lease Options to Renew

When negotiating a lease agreement, one element that is usually brought up during negotiations is the lease option to renew.  Essentially this is the Lessee’s (tenant’s) “option” to renew the lease after the expiration of the initial term. ...