Tag: cre
-
How Infrastructure and Amenities Shape Commercial Property Value
Beyond the Address Location is a cornerstone of success in commercial real estate. But a prime address isn’t just about visibility – it’s about the infrastructure and amenities surrounding the property. These elements create a network that supports business operations, attracts tenants, and ultimately, increases your property’s value. Understanding how infrastructure and amenities impact value…
-
Staying Positive During the Commercial Property Sale
It’s a Marathon, Not a Sprint Selling a commercial property can be a rewarding experience, but it can also be a marathon, not a sprint. The process can involve unexpected delays, frustrating negotiations, and moments of discouragement. Maintaining a positive attitude throughout the journey is crucial for staying motivated and achieving a successful sale. Here…
-
Celebrating Your Successful Commercial Real Estate Sale
Cheers to the Deal The gavel has fallen, the paperwork is signed, and you’ve successfully sold your commercial property. Congratulations! This significant milestone deserves a moment of celebration. But beyond the initial excitement, it’s also a time for reflection and planning for the future. In a Nutshell Commemorating Your Achievement: Planning for the Future: Beyond…
-
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…
-
Stress Test Your Way to Success: A Guide to Bulletproof Commercial Real Estate Investments
In a Nutshell Introduction The commercial real estate market offers significant potential returns for investors. However, unforeseen circumstances can significantly impact a property’s performance and profitability. To navigate this dynamic landscape, savvy investors rely on a powerful tool: stress testing. Why Stress Test? While traditional investment analysis provides valuable insights, it often focuses on a…
-
Don’t Let Capital Gains Taxes Sink Your Dreams
Selling Your Business? Selling your business can be a culmination of years of hard work and dedication. However, the joy of a successful exit can be dampened by the looming shadow of capital gains tax. This significant tax burden can leave many business owners feeling stuck, unsure how to proceed. The Capital Gains Tax Challenge:…
-
Real Estate Absorption Rate for Smart Investors
In a Nutshell Understanding Real Estate Absorption Rate The absorption rate in real estate is a metric used to gauge how quickly available properties are selling within a specific market and timeframe. It essentially reflects the balance between supply (number of houses on the market) and demand (number of buyers interested in purchasing). Calculating Absorption…
Are You Accepting New Customers?
