Investors typically need to take into consideration a wide range of factors before purchasing property, including the cost to demolish existing structures that may no longer fit the specific needs and objectives of the land’s use going forward. Calculating the value property while factoring in demolition cost is critical to do this.

What is the Average Cost of Commercial Demolition Per Square Foot?

Typical costs … Read More

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A lockout period is a specific, predetermined amount of time after the loan’s origination in which the loan cannot be prepaid. Lockout periods, when present, are defined within the loan contract and can be a negotiable condition in some situations. Since these periods can vary significantly from one organization to the next, investors should pay close attention to their presence and what they may mean … Read More

The post Understanding Lockout Period in Commercial Real Estate first appeared on CommLoan.

Return on equity (ROE) is a ratio used to measure the profitability of a real estate investment in comparison to shareholders’ stakes in the property. It shows how effectively an investment’s capital is being used to generate profits and thus is helpful when evaluating properties being considered or already in a portfolio. 

Calculating ROE is a fairly straightforward process and something that every real estate … Read More

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Warehouse space is valuable for many organizations. Due to the increased demand for consumer online purchases rather than in-store purchases, there has been a much higher demand for high-quality, accessible warehouse space in key markets. For investors, it is critical to determine if there is profit potential in purchasing a warehouse to meet revenue goals in a highly competitive industry sector.

What is Considered a … Read More

The post How to Buy a Warehouse: A Guide to Warehouse Investment first appeared on CommLoan.

Commercial real estate investors need a solid understanding of just how much they’re putting into properties and other assets. The capital expenditures (CapEx) formula shows just that. Here’s how to calculate and use CapEx in commercial real estate investing.

What are Capital Expenses (CapEx) in Real Estate?

Capital expenses are the costs necessary for acquiring, maintaining, and improving physical assets. Commercial real estate primarily involves … Read More

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