Eric Little

Tenant improvements affect property value, tenant satisfaction, leasing terms, insurance coverage (for the tenant), and more. If you’re involved in commercial real estate in any way, it’s essential that you understand what qualifies as leasehold improvements and what doesn’t. Here’s a look at what tenant improvements are, and the corresponding implications.

What Exactly is a Tenant Improvement?

A tenant improvement, also known as a leasehold … Read More

Tenant estoppel certificates are common in commercial real estate when leased properties are financed, refinanced, sold, or otherwise transferred. Tenants are often asked to sign certificates in order to confirm details of their lease for third parties.

The purpose of these certificates is to confirm the most pertinent details of a lease, usually for a third party that’s involved in the property transaction.

What is … Read More

Leasehold estate or leasehold property is a term often heard in relation to accounting. It refers to an asset of some type that is being leased. In commercial real estate, a leasehold is likely to be a space or building. This term is not commonly used today, but it is still a factor investors should consider when involved in commercial real estate transactions.

What Is … Read More

The world of commercial real estate (CRE) is filled with complex financial arrangements, and understanding the terms involved is essential to maximizing returns and reducing risk. One of these terms,”‘ pari passu,” plays a significant role in the organization and distribution of funds within a commercial real estate transaction. Every investor who’s involved in a multi-party real estate arrangement should understand what’s meant by pari … Read More

In every financial transaction, the details determine the rate of return or profitability of any deal. One component of that process is mortgage basis points. Base points are used in a wide range of financial components of any commercial mortgage transaction. This includes spreads and fees.

Understanding Mortgage Basis Points

Sometimes called BPS, mortgage basis points help to measure financial instruments. Most often, each point … Read More

Hard money commercial loans could be a viable option for some investors looking for a way to buy real estate outside the traditional methods. For those considering these loans, it is critical to learn their requirements and implications.

What Is a Commercial Hard Money Loan and How Does It Work?

Commercial hard money lenders have different rules and requirements for borrowers to follow. They also … Read More

Commercial real estate not only requires a deep understanding of the market but also of different tenant types. One critical tenant of any successful commercial retail or office property is the anchor tenant.

What Does an Anchor Tenant Mean?

An anchor tenant is a large and well-known business that occupies a significant amount of space in a commercial real estate property. This type of tenant … Read More

Real estate syndication is a powerful investment strategy that allows multiple investors to pool their resources and purchase properties that they would not be able to afford individually. It’s a great way for individual investors to benefit from the economies of scale, shared expertise, and reduced risk that come from pooling resources with other like-minded individuals. Here’s a guide on why and how you might … Read More

Rent is obviously the amount tenants pay for their leased spaces, but it can be calculated in a couple of different ways. Net effective rent calculates the amount that leases generate on an average monthly basis. Landlords may strategically use net effective rent in their listings and marketing, and they should know it even if they don’t advertise rent this way.

What Does Net Effective … Read More

A commercial real estate property’s potential income isn’t just the monthly rents times twelve. Such a simple approach misses additional revenue sources and potential costs, and thus doesn’t fully and accurately reflect the income that the property should generate. Instead, calculating effective gross income provides a much more accurate estimate of potential income.

What is Effective Gross Income (EGI)?

Effective gross income (EGI) projects the … Read More