As more investors look to add commercial real estate to their portfolios, demand for commercial property has risen to new heights. Many prospective investors will look at dozens, even hundreds, of properties before making an offer to purchase. Before they do so, however, most will submit what’s known as a “letter of intent” – or LOI – as a precursor to a more formal, binding agreement with the seller or landlord.
Most urban residents know that there are literally thousands of commercial buildings in a metropolis, but perhaps beyond an occasional interaction a building superintendent or landlord, give little thought to the matter of who operates a structure.
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Here are the steps you need to know when investing in commercial real estate and some tips to get you started.
Cap rates can be an incredibly valuable tool for investors looking to establish a property’s value. The cap rate, expressed as a percentage, is calculated by dividing the property’s net operating income by its purchase price. The resulting percentage generally ranges anywhere from 3 percent to 15 percent or more.
Are you curious about what role bridge loans play in the world of commercial real estate? Take a look at what you need to know.
Experienced commercial real estate investors and tenants always use a LOI when entering into a potential transaction or buy, sell, or lease office space. Although LOIs are frequently used to buy or lease commercial real estate, parties sometimes make critical mistakes that could easily be avoided.
When you look for office space to lease, two of the most common leases you will find are FSG and NNN. But what do those terms really mean, and is one option better than the other?
Off-market real estate properties can be the perfect opportunity for commercial real estate investors on the lookout for great deals on office buildings.
People who have been in the commercial real estate business for any length of time have heard of an Offering Memorandum (OM). While marketing flyers and brochures are publicly distributed to the general investment community, a good commercial real estate OM is used to generate interest from the most qualified prospective investors and bring them to the deal table.
