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, […]
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 […]
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 […]
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 […]
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 […]
CAM is an often-used acronym for common area maintenance, or the fee that commercial real estate tenants pay above their monthly rent payment to cover their pro rate share of the property owner’s operating expenses. These costs, typically associated with triple-net-leases can include property taxes and insurance; building security, cleaning, […]
Based on economic indicators at the end of December 2019, we see a bright future for commercial real estate investment in 2020. While stable interest rates and inflation will help to maintain transaction volume and access to capital, the rate of activity may slow slightly due to ongoing, global macroeconomic […]
According to Real Capital Analytics, foreign investment in U.S. commercial real estate decreased more than 50 percent in 2019 from the prior year. One reason for the decline is a notable drop in capital investments coming from mainland China, which, researchers note, previously “represented an outsized presence in the U.S.” […]
The Federal Reserve Bank’s decision to leave interest rates unchanged at the end of 2019, following a quarter-point rate cut in October, has caused many investors to abandon the safety of CDs and Treasury bonds in favor of steady cash flow and the promise of higher returns traditionally found in […]
The commercial real estate (CRE) market has enjoyed a significant period of property appreciation and record returns. Would-be investors who are sitting on the sidelines waiting for a market dip or slowdown to take their turn at-bat may very well find themselves out of the game. Instead, investors should recognize […]
Posted on March 03, 2020