Tag: commercial property advisor
Selling Smart
Mitigating Depreciation Recapture and Capital Gains on Commercial Real Estate Selling commercial real estate can be a lucrative venture, but tax implications can eat into your profits. Depreciation recapture and capital gains taxes are significant concerns for sellers. However, there are strategies you can employ to minimize their impact. In a Nutshell Understanding the Tax…
A Guide to Understanding Commercial Leases for Tenants
Background The world of commercial real estate (CRE) can feel like a labyrinth, especially for tenants navigating their first lease agreement. While the excitement of finding the perfect space is real, understanding the intricacies of the lease itself can be daunting. Fear not, fellow entrepreneurs and business owners! This guide will equip you with the…
Unpacking the CCIM Cash Flow Model
The CCIM Cash Flow Model, developed by the CCIM Institute, is a financial tool used to analyze the potential cash flow of a commercial real estate investment. It helps investors make informed decisions by considering various factors that impact the investment’s profitability. Here’s a breakdown of the model: In a Nutshell Core Purpose: Key Components:…
Why Cost of Capital Matters More Than Loan Interest
For commercial real estate investors, navigating financing options goes beyond simply comparing loan interest rates. A crucial concept to understand is the Cost of Capital (CoC). While loan interest reflects the explicit cost of borrowing money, the CoC provides a more comprehensive view of the minimum return required to justify an investment. In a Nutshell…