Eric Little

A lockout period is a specific, predetermined amount of time after the loan’s origination in which the loan cannot be prepaid. Lockout periods, when present, are defined within the loan contract and can be a negotiable condition in some situations. Since these periods can vary significantly from one organization to the next, investors should pay close attention to their presence and what they may mean … Read More

Investors typically need to take into consideration a wide range of factors before purchasing property, including the cost to demolish existing structures that may no longer fit the specific needs and objectives of the land’s use going forward. Calculating the value property while factoring in demolition cost is critical to do this.

What is the Average Cost of Commercial Demolition Per Square Foot?

Typical costs … Read More

Warehouse space is valuable for many organizations. Due to the increased demand for consumer online purchases rather than in-store purchases, there has been a much higher demand for high-quality, accessible warehouse space in key markets. For investors, it is critical to determine if there is profit potential in purchasing a warehouse to meet revenue goals in a highly competitive industry sector.

What is Considered a … Read More

How to Find Off-Market Commercial Property Deals

The best deals are often those that others don’t know about, and this is especially true in commercial real estate. Knowing how to find off-market commercial properties and structure offers can help you acquire properties that otherwise wouldn’t be available. You could discover bargain deals, highly desirable properties, or other great commercial real estate deals others don’t know … Read More

Commercial real estate investors must accurately determine how much rent they should charge. Too high rent will result in tenant turnover and vacancies, and too low rent will result in lower returns and potential cash flow issues. The right rent will be competitive with the local market and also provide a satisfactory return on investment (ROI). Here are some ways to determine how much to … Read More

Investors looking for a way to transform a hotel into an apartment community may find that the premise makes good sense. While it can be a profitable move in some situations, investors must complete due diligence to understand the opportunities and limitations this process can offer fully.

Often called adaptive reuse of a property, this method can afford cities access to the housing they need … Read More

It is not uncommon for property owners to need to make additions or change the floor plan of their property. This occurs in both commercial real estate as well as in residential properties. When those changes to the building are permanent, meaning they cannot be easily removed, they are referred to as appurtenances. Understanding this concept is critical for commercial real estate investors who may … Read More

A base rent provision is often in place within a commercial lease in commercial real estate. Most often listed as a clause, this is an important component for property owners and renters to understand. It provides specific insight into the tenant’s rent obligation.

It is not uncommon for commercial property investors and owners to work through a rent negotiation process with prospective tenants. In that … Read More

Businesses may own many different types of property, with buildings, equipment, materials, and inventory being just a few examples. FF&E is one way of grouping assets that have value and last but aren’t part of a commercial real estate property.

What is FF&E?

Furniture, fixtures, and equipment (FF&E) refers to hard assets that last longer than one year but aren’t affixed to the building or … Read More

The investment in commercial real estate always warrants careful consideration of a variety of factors. As one of the most confusing of all commercial real estate investment strategies, the equity waterfall model may be one of the most important methods to truly understand. There are numerous ways cash flow from a project can be split, and that is what makes this real estate waterfall method … Read More