Realmo Blog - Page 3

Renewal options set notice windows, rent-setting methods and how many extensions a tenant gets. What “fair market rent” means in practice.

Fixed percentage, fixed dollar, CPI-linked or stepped increases. How each escalation type compounds over a lease term, and which side it favors.

Free rent, abatement, moving allowances and TI dollars all cut effective rent. How concessions are structured, and how landlords claw them back.

TI allowance is quoted per square foot and paid on conditions. Who owns the improvements, how funds are disbursed, and what happens to unused money.

An absolute NNN lease leaves the landlord with no obligations at all, roof, structure and casualty included. How it differs from a standard NNN.

Empty space cuts NOI and raises the cap rate buyers demand, so value falls twice. Plus the lease-up costs and downtime buyers price in.

Four tests decide a property’s highest and best use: legally permissible, physically possible, financially feasible, maximally productive.

What IRR, cash-on-cash return and equity multiple each measure, and why one deal can look strong on one metric and weak on another.

NOI is what a property earns before debt and taxes. The formula, what belongs in it, and how lenders and buyers use NOI to set property value.

Match asset class to capital, time and risk appetite: office, retail, industrial, multifamily, storage and land compared on effort and returns.

Mixed-use stacks retail, office and residential in one asset. How the components are financed, leased and valued, and where risk concentrates.

Cold storage costs more to build and run: refrigeration, insulation, power load, racking. How investors underwrite temperature-controlled space.

Shopping center formats compared by size, anchors, trade area and tenant mix – and what each format means for rent, vacancy and resale value.

Last-mile facilities trade on delivery speed. Site criteria, building specs, tenant demand and how rents compare with bulk distribution warehouse.

Apartment investing from unit mix to underwriting: rent comps, expense ratios, agency financing, value-add plans and how to read a rent roll.

Office, retail, industrial, multifamily, hospitality and special purpose – how each commercial property type earns money and who invests in it.

Common area maintenance covers shared upkeep, and often more. What’s includable, how pro rata shares are set, caps, gross-ups and audit rights.

A ground lease separates the land from the building on it. Long terms, reversion at expiry, financing hurdles, and how each side gets valued.

Double net leaves roof and structure with the landlord, triple net usually doesn’t. What each net covers, and how the gap shows up in cap rates.

Modified gross splits expenses between landlord and tenant, and no two are alike. Common splits, base year mechanics and what to pin down in writing.

Who pays taxes, insurance, utilities and maintenance under each lease type, and how structure changes effective rent for tenants and NOI for owners.

Assessors value for taxes, appraisers for the market. Why the two numbers diverge, how assessments are set, and when a tax appeal is worth filing.

LTV sets how much of the price a lender will fund. Typical LTV limits by property type, how appraised value changes it, and what happens at refinance.

Build an underwriting model step by step: rent roll, T-12, vacancy, expenses, capex, debt and exit – plus the assumptions that break most deals.