Realmo Blog - Page 5

Hold period moves IRR more than almost any other input. How the business plan, debt maturity, lease rollover and tax treatment set the right one.

A T-12 shows twelve months of actual income and expenses. How to spot one-time items, seasonality, missing capex and numbers that won’t repeat.

Physical vacancy, economic vacancy and credit loss are three separate deductions. How to set each one instead of copying the broker’s pro forma.

Why industrial property draws capital: clear height, loading, tenant credit, NNN leases and cap rates – plus what to inspect before you buy.

How commercial leases work end to end: lease types, term and rent structure, expense recovery, options, guarantees and the clauses worth negotiating.

PGI assumes full occupancy at market rent, EGI subtracts vacancy and credit loss and adds other income. How to get from one to the other, line by line.

OER divides operating expenses by effective gross income. Typical ranges for office, retail, industrial and multifamily, and why lease type skews them.

In a triple net lease the tenant pays taxes, insurance and maintenance on top of base rent. How NNN rent is quoted and who still carries the risk.

Break-even occupancy shows how empty a building can get before it stops covering costs and debt. The formula, an example, and safe margins by type.

Decode a commercial listing: NNN vs gross rent, cap rate, NOI, price per square foot, lease terms – and the numbers brokers tend to leave out.

Price per square foot only works when the buildings match. How to adjust for age, condition, clear height and rentable vs usable area first.

Land value plus replacement cost minus depreciation. Why the cost approach fits new construction and special purpose buildings, and fails elsewhere.

The same asset can reach an investor through a public commercial real estate auction or a private pre-foreclosure negotiation before the sale date. Pre-foreclosure gives the buyer more room to negotiate price, terms, financing, and diligence; an auction can deliver greater certainty of execution through a defined sale process and deadline. A commercial real estate […]

Queries to Rey, the AI assistant on the commercial real estate marketplace Realmo, show where buyers get stuck. Spoiler: finding the property is only the beginning. Commercial real estate search usually starts with filters, but buyers often need more help once a property appears. Inside the CRE marketplace Realmo, these questions go to Rey, an […]

A projected 20% IRR is easier to turn into a headline than a strategy built around steady rent collections and limited downside. This helps explain why conservative CRE approaches might receive less attention in investment discussions, even though they serve a clear purpose for income-focused investors. Core and Core-Plus real estate sit at the lower-risk, […]

Picture two CRE deals: one is a stabilized office building collecting rent, while the other is a vacant lot with zoning work ahead, construction drawings in progress, and no income until a building opens. Both are real estate investments, but their risk profiles are completely different. And as investors move from fixed income to core, […]

There isn’t really one right answer here, and anyone who tells you otherwise is probably trying to sell you something. Leasing office space is a decision that quietly shapes a business for years. It affects what you pay every month, sure, but also who you can hire, how easy it is for clients to reach […]

Cash flow in real estate is what turns a commercial real estate investment from a promising asset into a business that pays its own way. For a buy-and-hold real estate investor, appreciation is important, but the property’s income must cover its bills long before a future sale delivers a gain. Listings can make this harder […]

A strong sale price feels like a win until the tax bill enters the room. When a commercial property has appreciated, the sale can trigger capital gains, capital gains taxes, depreciation recapture, state taxes, and other closing-year tax consequences. If the property was held for a short period, some gain may be taxed at ordinary […]

Every rent check you write helps someone else build equity. That’s the basic frustration behind owner-occupied commercial real estate: as a business owner, you’re already paying for space, but a lease doesn’t give you ownership, appreciation, or long-term control. An SBA loan can change that equation by helping you buy a commercial property for your […]

Opportunity zone investing is no longer a temporary tax idea with an expiration date. After the 2025 tax law, the opportunity zone program became a permanent part of the tax code, with new rules coming in 2027. The incentive was created by the 2017 Tax Cuts and Jobs Act to spur economic development and job […]

There is no one-size-fits-all path in commercial real estate investment. Some investors want stable income, while others want higher returns and accept more moving parts. Value-add commercial real estate sits between those poles. The strategy is simple at first glance: you buy an underperforming asset, improve it, increase income, and sell or refinance at a […]

A commercial property can throw off positive cash flow and still show a taxable loss. That’s the power of depreciation. With commercial real estate depreciation, investors can deduct part of a building’s cost each year, even though no new cash leaves the account. This “paper” deduction is one of the biggest tax benefits in CRE […]

Here is a situation that used to be far more common than it should have been: an investor with genuine capital, a clear strategy, and real interest in U.S. commercial real estate ends up buying something two miles from their house – not because it was the best opportunity available, but because it was the […]