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 […]

What is a Ground Lease?

Posted on March 03, 2020

A ground lease is a long-term agreement between a landowner and a tenant/lessee who pays to rent the land on which a tenant/lessee intends to construct a building. Essentially, a ground lease separates a physical building from the land on which it sits. In doing so, it helps prospective tenants, […]

Investors Find More Opportunities in Tenant Vacancies

Posted on February 27, 2020

Neighborhood shopping centers in secondary markets where consumers live, work and play are continuing to do well at a time when many national brands are downsizing or closing stores.  In fact, when a staid, time-worn tenant vacates a property with strong fundamentals, landlords have an opportunity to revitalize the property […]

Why Real Estate Investors Should Avoid Gross Leases

Posted on February 19, 2020

In a full-service lease, also referred to as a gross lease, a tenant’s only financial responsibility is to pay rent for the space it leases. This leaves landlords with the responsibilities of paying all the costs to operate and maintain a property, including insurance and taxes, which can become a […]

More Risks with REIT Investing

Posted on February 11, 2020

Real Estate Investment Trusts (REITs) can provide average investors with an affordable option for gaining entry to the high yields and steady cash flow that can come with investments in commercial real estate. However, because equity REITs are publicly traded securities governed by the SEC, some of their potential benefits […]

How CRE Investments Can Hedge Against Recessionary Risks

Posted on February 06, 2020

While economic and political uncertainty in the election year will likely produce short-term volatility in the equity markets and slow the country’s record period of economic expansion, long-held commercial property with sound fundamentals is well positioned to survive and even thrive through a market downturn. Three interest rate cuts in […]