The cap rate is an important concept in commercial real estate, and it is widely used. There is often confusion about how to calculate the cap rate using various methods. The purpose of this article is to demonstrate several ways to calculate the cap rate.
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Selling Multifamily Property: Guide with eXp Commercial
Learn the process of selling your multifamily property with eXp Commercial. Maximize value and createRead more
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Selling an Apartment Building FAQ’s
Are you thinking of selling your multi-family property? Here are some of the most frequentlyRead more
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If You’re Hesitant To Hire A Broker For Your Multifamily Property Read This
The most important benefit of exclusively listing your property with a broker is representation.
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Should I Sell or Should I Hold? When is the best time for asset repositioning?
It doesn’t really matter what the current real estate market is like if you areRead more
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Why Should I Sell My Multifamily Property?
There are a number of reasons why people decide to sell their multifamily property, butRead more
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The concept of highest and best use is one of the fundamental principles that underlie real estate appraisal. Highest and best use requires that the appraisal considers not just the current use of the property but also the potential value associated with alternative uses.
The income approach is one of three techniques commercial real estate appraisers use to value real estate. Compared to the other two techniques (the sales comparison approach and the cost approach), the income approach is more complicated, and therefore it is often confusing for many commercial real estate professionals. In this article, we’ll walk through the income approach to property valuation step by step, including several income approach examples.
Loss to lease is a commonly used calculation in a commercial real estate analysis. However, loss to lease can also be one of the most confusing calculations to understand, especially when you see it for the first time. In this article, we’ll take a closer look at the loss to lease calculations and walk through several examples to help you understand what it is and how it works.
Every investment involves a certain amount of risk. There are certain general sources of risk that influence all assets – things like geopolitical risk and global macroeconomic risk. What makes each asset unique is the level of sensitivity that its rate of return has to those risks. In addition, specific types of assets have risks that are uniquely their own. In this article, we’ll look at eleven types of risk in commercial real estate investment.
One of the unique challenges of commercial real estate investment is that markets, types of property, return expectations, and physical environments are in a constant state of change. As a result of these changes, a commercial property could be cash flow positive one day and undesirable the next due to shifts in tenant desires or some other factor. The real estate term for this type of risk is “obsolescence” and there are three types that CRE investors should be aware of.