The COVID-19 pandemic has given way to some creative commercial lease arrangements that can provide a win-win for both property owners and tenants struggling with business interruptions in a socially distanced environment. One example is a percentage lease, commonly used in shopping malls. Under the terms of a percentage lease, […]
Real estate investment trusts (REITs) continue to garner a lot of attention, providing average investors with an opportunity to own a small piece of income producing commercial property. However, REITs are quite different from private equity investments in commercial real estate and therefore do not provide investors with the same […]
When considering investments in commercial real estate, it is important to remember that every property is unique, and no two deals are alike. Therefore, investors must be prepared for an exhaustive due-diligence process, evaluating countless data points to ensure a selected property meets established criteria. This involves not just the […]
One of the benefits of investing in commercial real estate is the ability to depreciate, or reduce, the taxable value of appreciating property over its useful life, which the IRS defines as 39 years for commercial buildings and their improvements. In other words, depreciation deductions allow investors to annually write […]
For 30 days in March the global stock markets shed 34 percent, jolting equity investors who just a few weeks earlier were celebrating once record market highs. While the equity markets have generally recovered, the pandemic’s long-term impact on the economy and their portfolios will undoubtedly leave a lasting impression. […]
Restaurants, grocers and retailers that pivoted and successfully adapted their brick-and-mortar business models for curbside pick-up during the initial impact of the COVID-19 health crisis are finding that the methods they employed are continuing to drive sales even as the number of virus cases continue to surge nationwide. The demand […]
Trying to time the public equity markets and buy on the dips can be a losing proposition. Instead, investors chasing yield often turn to commercial real estate to generate a steady stream of passive rental income while maintaining its underlying value over the long-term. As evidenced by the Great Recession, […]
The election of Joe Biden to serve as the U.S.’s 46th president portends future tax increases for high-net-worth investors and estates as well as a potential loss of the preferential tax treatment of 1031 exchanges of like-kind real property. However, the likelihood that any changes to existing tax laws will […]
Commercial real estate investors have long relied on Section 1031 of the tax code to defer capital gains taxes on the sale of appreciated real property when they reinvest sales proceeds into the purchase of similar, like-kind property within a very specific timeframe. However, it is not uncommon for investors […]
Despite the economic volatility and uncertainty caused by the current health crisis, investor activity in commercial real estate remains strong, especially in the net lease space. Most investors recognize that commercial property with strong fundamentals is generally a part of longer-term portfolio-diversification strategy that is not impacted by the short-term […]
Posted on January 28, 2021