Stop! And Ask your CRE Broker These 3 Questions
After having been in real estate for over a decade you end up running into all types of commercial brokers. Much like every other profession there are good ones and bad ones,...
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...
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...