Longterm commercial leases almost always include rent escalation provisions — scheduled increases in base rent over the lease term. How those…

Beyond title, every commercial acquisition involves a short list of due diligence documents. As a beginner, your job is to recognize each one, know…

Title is legal ownership. When you purchase commercial real estate, you receive a deed that transfers title from the seller to you.

Net Operating Income — NOI — is the single most important metric in commercial real estate. If you understand only one number from this course, it is…

The Operating Expense Ratio (OER) tells you what percentage of a property’s gross income is consumed by operating expenses. Formula: OER = Operating…

Two properties selling for $3,000,000 each are not comparable unless you know what you’re buying per unit. Enter price per unit and price per square…

In multitenant properties — office buildings, retail centers, industrial parks — Common Area Maintenance (CAM) charges allow the landlord to recover…

The capitalization rate — universally called the cap rate — is the return a property would generate if purchased with all cash (no mortgage)….

NOI is the property’s income before financing. Cash Flow Before Tax (CFBT) is what the investor actually receives in their bank account after paying…

Cashoncash return (CoC) measures the annual cash income generated by a property relative to the equity invested. Formula: CoC = Annual CFBT ÷ Total…