Author: Tommie
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Cost-Cutting Strategies for Commercial Real Estate Owners
When it comes to commercial real estate, every penny counts. Here are some creative ways to reduce expenses,categorized by their areas of focus: In a Nutshell Energy Efficiency: Operational Efficiency: Creative Space Utilization: Specific Examples: Remember, the most effective cost-reduction strategies are tailored to your specific property and tenant base. Analyze your operational data, consider innovative solutions, and don’t be afraid…
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CRE Investment Analysis: A Financial Calculator Guide
In a Nutshell Here are some key questions that can be answered related to commercial real estate using a financial calculator, along with their significance and steps to calculate them using the BA II professional financial calculator app: 1. Mortgage Payments: What will my monthly mortgage payments be? Importance: Determines affordability and cash flow management. Steps…
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Unlocking Value: The Power of Proactive Blend and Extend Leases
In a Nutshell Why would anyone voluntarily pay to have increased rent? The answer from the landlord side is simple and can be found when considering PV (present value) versus FV (future value) of income. The immediate increase in NOI can make such an action very useful if one is considering a sale of the…
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How NOI Affects Commercial Property Prices
In a Nutshell An increase in net operating income (NOI) generally leads to a higher price for an apartment building or other commercial real estate property. The impact of an additional $10,000 on NOI, however, isn’t a simple one-to-one ratio and depends on several factors: Capitalization Rate: Investors use a metric called the capitalization rate (cap rate) to estimate…
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