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...
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...
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...
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...
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"...
Annual Property Operating Data (APOD)
One of the most important preliminary tools used in evaluating commercial real estate is the Annual Property Operating Data (APOD) worksheet. It tells the story of how the...
Portland Q4 2017 Retail and Industrial Market Update and 2018 Forecast
National Summary: 2017's fourth quarter continued to show strong signs in both retail and industrial investments nationwide; however overall sales volumes were down...
Limitations on Cash on Cash Return
Our previous post discussed the positives and negatives of using the capitalization rate to evaluate an investment. Similarly, another quick and easy calculation often used in...
Preparing for Capital Improvements
One thing that investors never like to do is spend money; however if you hold a property for a long enough period of time you will inevitably be left with the prospect of making...
Cap Rate – Why it’s Great…And Why it’s Not
The capitalization rate (or cap rate) is often seen on listings for investments being sold, but what is it and how relevant is it? The cap rate is essentially another yield...
Time Value of Money
The Time Value of Money is an important factor when looking at any type of investment analysis. The basic calculations refer to the question of how much an investment made today...
Investors vs. Users
There are essentially two categories all commercial real estate owners fall into: investors or users. Investors purchase the property and then lease it out to tenants to...