What Are They? Arm’s length transactions in commercial real estate occur when two unrelated parties negotiate a deal independently and without external pressure. Each party operates in their best interest, ensuring fair market value for the property. These transactions are essential in maintaining transparency and integrity in high-value deals like office buildings, retail spaces, and […]
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What Are Easements? Easements are legal rights that allow one party to use another party’s land for a specific purpose, without transferring ownership. In commercial real estate (CRE), easements are especially important as they often affect access, utility lines, or property boundaries. For instance, a property owner may have to grant a utility company the
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Latent defects are hidden issues in a property that are not immediately apparent during a standard inspection. Unlike patent defects, which are visible and can be noticed upfront, latent defects often go unnoticed until after a property is purchased or leased. These could include things like hidden mold, faulty plumbing behind walls, or structural issues
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Specific performance is a legal remedy in real estate that requires a party to follow through with their end of a deal, instead of just paying damages for not doing so. It’s a tool that’s typically used when financial compensation wouldn’t be enough to make the other party whole—especially in real estate, where properties can
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Loss to lease represents the difference between the market rent a property could command and the actual rent being collected. This discrepancy often arises due to long-term lease agreements or outdated rental rates. For example, if the market rent for an office space is $50 per square foot but the current lease agreement only charges
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Commercial leases could be considered as the infrastructure backbone of many business operations. After all, it provides the space and security companies need to thrive. Among the various types of leases, the perpetual lease stands out as a unique arrangement. A perpetual lease, also known as a permanent or evergreen lease, offers an indefinite leasing
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Understanding lease costs, whether a snapshot or a deep dive, is something that many tenants (and landlords!) have trouble with doing accurately. This can be especially true with small business owners, after all, they have a business to run. Because of this, we’re introducing our commercial lease calculator, which includes NNN (Triple Net) expenses to
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What is a Rent Roll? A rent roll is a document for property managers that acts as a snapshot of the current income of a property. Think of it as an operational income report, a rent roll lists all tenants, their leased spaces, the duration of their leases, and the rent they pay, which provides
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Understanding financial responsibilities in real estate is high on the list of anyone’s list, whether they’re an investor, lender, or property manager. One of the key instruments in defining the hierarchy of these responsibilities is the subordination agreement. These agreements play a big role in structuring the priorities of different creditors, especially when multiple stakeholders
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Grandfathered property lines in commercial real estate represent an important aspect of property ownership and development, holding significant implications for buyers, sellers, and developers. These property lines are established under old regulations that have since changed, allowing existing boundaries to remain intact despite new zoning laws. Finding Your Property Lines How Are Property Lines Marked?
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