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Part 2: Can Your Industrial Property Investment Attract New Tenants?

In a previous Realty Mentors blog, we discussed the unique challenges and nuances of leasing office space. In this blog, we will focus on the unique aspects of leasing industrial space. The goal of this blog is to provide some background information which can assist a commercial real estate investor when evaluating an investment opportunity […]

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Part 1: Can Your Office Property Investment Attract New Tenants?

Every property type including office comes with its own set of unique challenges and nuances. So when an investor encounters an investment opportunity that involves an office building with short-term leasing needs, it is important to understand what factors might influence the sponsor’s ability to attract new tenants to the property. Leasing needs could arise […]

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Commercial Real Estate Deal Analysis: Deal Sponsor Pro-Formas

Nearly any well-conceived commercial real estate investment offering will include some sort of Sponsor generated budget or pro-forma. This is often the centerpiece of evaluating the Sponsor’s plan to generate cash flow on behalf of the investors. With that said, it’s important for potential investors to understand how to interpret Sponsor generated pro-formas.   When […]

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What are Tenant Reimbursements and Why Do They Matter?

For those unfamiliar with commercial real estate lease structures, one should be aware that it is extremely common for retail, industrial and office property tenants to reimburse their landlord for certain expenses associated with the operations of a property. The pass-thru of these expenses to the tenant is commonly referred to as Tenant Reimbursements or […]

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Does the Commercial Real Estate Sponsor Have Skin in the Game?

When analyzing any investment opportunity whether it be real estate or otherwise, one should take the time to understand the sources of capital utilized to finance any given offering. Further, one should understand where the investors’ capital contribution fits within the other sources of financing. For example, are the investors’ dollars in a 1st lien […]

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Commercial Real Estate Deal Analysis: Projected Rent Income

Every commercial real estate investment opportunity is different. Some opportunities offer very stable income which can be verified by contractual rents. In other words, the projected rent income is backed up by leases which define what the rent will be throughout the lease term. Sometimes the lease term will extend throughout the investment lifecycle. Other […]

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Commercial Real Estate Deal Analysis: Engineering and Environmental Reports

When purchasing real estate of any sort, it is always wise to procure independent outside experts to ensure that the property itself doesn’t include hidden liabilities or costs. For example, when an individual purchases a residential home, they often seek out a qualified home inspector to determine whether the home has mechanical flaws or issues. […]

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Commercial Real Estate Deal Analysis: Hidden Lease Clauses

Commercial real estate can be broken down into various property types, and each property type offers its own set of challenges and characteristics. Office, retail and industrial properties will typically generate cash flow from rent payments which are contractually outlined by commercial leases with one or more tenants. Most investment offerings will provide some sort […]

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Commercial Real Estate Deal Analysis: Property Taxes

Commercial Real Estate Deal Analysis: Property Taxes

When viewing the investment offering materials for a given commercial real estate deal, one could typically expect to see a pro-forma cash flow included which projects all of the income and expense for a property for the duration of the investment’s anticipated life. Included in the expense projections will be real estate or property taxes […]

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