The Truth about Force Majeure Notices as a Basis of Withholding Rent

Posted on June 17, 2020

The COVID-19 pandemic has created a tidal wave of commercial real estate tenants seeking rent forbearance and abatement. While much news has been made over tenants issuing force majeure notices with the hope that the coronavirus will qualify as an act of God that will relieve them of their obligation […]

CRE Investors Find Safety in Triple Net Lease Properties

Posted on June 09, 2020

Government-mandated business closings and quarantine orders resulting from the COVID-19 pandemic emptied many multi-tenant commercial properties and put at risk the rental income investors rely on for cash flow. This may not necessarily be the case for investors in triple net lease (NNN) properties, especially those with single tenants considered […]

CARES Act Provides Economic Relief to Commercial Property Investors

Posted on June 04, 2020

The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27 provides individuals and businesses with much-needed economic relief from the financial challenges created by the COVID-19 pandemic. While much attention has been focused on government hand-outs to individuals and certain businesses, the law includes several […]

IRS Extends 1031 Exchange Deadlines

Posted on May 26, 2020

Investors who could not complete Section 1031 tax-deferred exchanges of commercial property due to the economic disruption caused by the COVID-19 pandemic may breathe a sigh of relief. The IRS extended the statutory periods of time to identify and/or close on replacement property without losing the preferential tax treatment. Under […]

Important Considerations for Investors in Community Bank Branches

Posted on April 14, 2020

According to the results of Future Branches’ 2019 survey of banking customer, the rise in mobile and online banking has not diminished consumers’ preferences to visit physical branch locations. More than half of the customers surveyed reported visiting a local branch and meeting face-to-face with bankers to conduct common transactions, […]

What is a Net Absorption and How Does it Measure CRE Performance?

Posted on April 09, 2020

Absorption, or the total square feet of rentable space that is leased and physically occupied during a specific time period, can help investors assess the supply and demand for a particular commercial property, asset class or geographic market. Net absorption tells investors whether demand is increasing (positive absorption) or decreasing […]

U.S. Shopping Centers Continue to Focus on Services

Posted on April 01, 2020

According to the International Council of Shopping Center (ICSC), there are currently more service-related establishments than retail stores in the U.S. Since 2002, the number of service- establishments at U.S. shopping centers increased by more than 20 percent, while retail locations declined by 4.5 percent. The most significant growth has […]

3 Differences in Valuing Commercial Property from Residential Real Estate

Posted on March 24, 2020

Valuing commercial property, such as office buildings, retail centers and warehouses, is quite different from the way one would value residential real estate, which relies on comparable sales (comps) to determine a home or condo’s fair market value. With commercial property, buyers and sellers must understand terms such as cap […]

Strip Shopping Centers Still Shine for Investors, Retailers

Posted on March 18, 2020

Convenience has long been a driver of consumer-spending habits. Not only has it helped to create an online shopping phenomenon, but it is also giving a boost to everyday, neighborhood strip centers where consumers must go routinely to do things they cannot do online. At a time when the consumers […]

What is a Sale-Leaseback?

Posted on March 12, 2020

A sale-leaseback transaction occurs when a business sells the land or buildings it owns/operates but continues to occupy the space by leasing the property back from the new owner. In recent years, these flexible financing vehicles have increased in popularity as a growing number of businesses look for ways to […]