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 […]
Specific Performance in Real Estate: What to Know Read More »
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 This discrepancy often arises due to long-term lease agreements or outdated rental rates.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
Calculating Loss to Lease [FORMULA + EXAMPLES] Read More »
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
Perpetual Leases: Everything You Need to Know Read More »
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
Commercial Lease Calculator Read More »
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
Rent Roll Template and How to Use it [EXAMPLE] Read More »
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
Subordination Agreements Explained [Template Included] Read More »
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?
Understanding Grandfathered Property Lines Read More »
There’s a surprisingly low amount of current or accurate data online about specific valuations as it relates to commercial real estate. For that reason, we’re going to use examples to illustrate valuation methods to calculate an estimate yourself. While this information will vary based on a variety of factors, I’m also including examples with each
Commercial Property Valuation: Methods to Estimate Yours Read More »
The term “broom clean” frequently surfaces at the end of a commercial lease. It’s a seemingly straightforward concept with significant implications for property management at many levels. Ensuring a space meets this standard is key to minimizing vacancy periods and preparing for new tenants efficiently. There’s definitely some legal ambiguity here (which we’ll get into
Understanding the Broom Clean Condition Clause in Commercial Real Estate Read More »
For commercial real estate investors and asset managers, integrating solar energy systems is a strategic move to cut operational costs and boost property values. Yet, the performance and longevity rely on diligent preventative maintenance of the solar panels, as well as being quick about fixes for common issues that come up. 1. Dust and Debris
Commercial Solar Maintenance: 8 Common Issues and Their Fixes Read More »
