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Cap Rate Calculations 

A capitalization rate is the overall or non financed return on a real estate investment, akin to the return on total assets in accounting terms. A cap rate is calculated as a mathematical relationship between net operating income and an

The Benefits of Cost-Segregation Studies 

When a commercial property is purchased or constructed, a building asset is created and the dollars are entered into a fixed asset system as 39 or 27.5 year property. Using the straight line method,

Bid vs. Ask 

Activity within the institutional commercial real estate market is picking up as a result of the abundance of capital seeking real estate opportunities. Property sellers who have been holding firm in their asking prices are being rewarded for their patience

Cost Comparison: A Case Study 

When looking to extinguish fixed rate debt, borrowers have two alternatives yield maintenance or defeasance. Both methods allow the borrower to unencumber the underlying real estate asset, and both compensate for the lender’s reinvestment risk following prepayment. However, each method

Cost-Segregation Savvy 

If you’ve been using cost segregation studies to accelerate depreciation of your commercial property, you’ve likely cut your taxes considerably. But could you save even more? Not all cost segregation studies are created equal. So what can you do to

Alternative Risk Retention for Commercial Real Estate 

In response to input from the commercial real estate industry, the Dodd Frank Wall Street Reform and Consumer Protection Act expressly contemplates flexibility and custom tailoring for commercial mortgage backed securities risk retention requirements. The contemplated regulations shall specify the

Buyers Are Back 

Commercial real estate investors are lumbering out of the woods and back into the game. The menagerie of buyers shopping for properties in today’s market runs the gamut from private individuals to billion dollar institutions. But one thing they all

The Big Fix 

Deferred maintenance in commercial real estate properties poses a significant challenge for market participants over the next several years. While nonrecourse lenders may suffer the most in the short term, this issue will be a serious consideration for property owners,

Best Buys 

In the increasingly competitive commercial real estate marketplace, buyers and sellers continue to seek advantages in the negotiation process. Until recently, structured sales were a concept that resonated primarily with sellers. Yet commercial real estate buyers may be surprised to

The Big Picture 

Companies that are real estate users can learn from today’s tough economy and past real estate strategies. Reflecting on best practices can provide insights to defend against future downturns. Real estate decisions, by their very nature, should include long term

Capital Conundrum 

The year is coming to a close. Now is the time to consider charitable donations for today and tomorrow.

Individuals may think about what charities have made a difference in their lives. Or ask themselves what legacy they want to create. Now Alfred Nobel is not remembered as a cannon manufacturer but for funding the prestigious Nobel Prizes.

Applied Economics 

 

Manufactured Homes 

It is evident that demographic trends are creating a greater need for affordable housing for the largest aging population in our nation’s history. Financial analysts are reporting that big investors are betting heavily on the rising demand for low cost

Full Speed Ahead 

 

Drones Take Off? 

Mainstream media has been focusing increased coverage on stories involving unmanned aircraft systems, also commonly referred to as drones. Glamorized notions of using UAS for delivering packages ordered online or beer to ice fishing houses tend to underplay the useful

Improved Property Management 

Foreign Capital Buys Offices In 2014, foreign capital was particularly focused on office assets, purchasing $17 billion of U.S. office properties, according to CBRE. That amount represents 45 percent of last year’s foreign investment in U.S. commercial real estate. More

Medicare Tax Concerns 

The new 3.8 percent Medicare contribution tax on unearned income, effective for tax years beginning after Dec. 31, 2012, may directly affect many owner operators and other real estate professionals. Passed by Congress in 2010 as part of the Patient

Donation Equation 

A tremendous opportunity exists for commercial real estate agents to produce additional income and public relations benefits by providing professional services to some of the 1.6 million U.S. public charities. These charities process roughly $3 billion in real estate donations

Lease to Sell 

When an owner considers the sale of a retail property, the process begins not the day a listing goes online but two or even three years beforehand. A smart owner will assemble a team to develop and execute a plan

Condo-Hotels Return 

A series of complex legal issues and Securities Exchange Commission regulations have historically impeded the sale of condominium hotel units. New SEC rules adopted under the Jumpstart our Business Startups, or JOBS, Act of 2012 have loosened the legal structure

Auto Site Selection 

When seven story new car dealerships are being built, it is a sign that fortunes are changing in the recently battered automobile industry. While the next development cycle for auto dealerships is just beginning, it is certainly underway. And, while

Lobby by Design 

Much is written in the media on how today’s workplace has changed, becoming a hub for collaboration and socialization, but there has been little focus on how this affects the office building. Thinking has shifted away from the traditional paradigm

Big Money on Campus 

Economic cycles close the door on some opportunities while opening the door to others. In the case of student housing, all key indicators suggest that the door continues to remain wide open — promising the availability of attractive investment opportunities

Value Play 

Value oriented real estate investors believe that real estate assets have an underlying intrinsic value that can be determined by analysis and evaluation. Opportunities for profitable investments arise when the asset’s purchase price is below its intrinsic value. Value investors

Shadow Banking 

The year is coming to a close. Now is the time to consider charitable donations for today and tomorrow.

Individuals may think about what charities have made a difference in their lives. Or ask themselves what legacy they want to create. Now Alfred Nobel is not remembered as a cannon manufacturer but for funding the prestigious Nobel Prizes.