Category: CRE GUIDES - 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.