Cap rate and cash-on-cash return are two of the most common metrics in commercial real estate. Keep reading to learn more about cap rate and cash-on-cash return, from the differences between these two indicators to how to calculate each of them. What Is Cap Rate? Cap rate is a metric that serves as an indicator…
If you are looking to purchase commercial real estate, SBA financing is an option that you should definitely keep on your radar. Keep reading to learn more about SBA loans and the reasons why it makes sense to use them for CRE properties. What Are SBA Loans? SBA loans are loans partially guaranteed by the…
In this post, we discuss Opportunity Zones, a tool that allows you to put your capital to work by investing in underserved areas in the United States. Keep reading to learn more. Intro to Opportunity Zones and Commercial Real Estate Qualified Opportunity Zones (QOZ) were created as part of the Tax Cuts and Jobs Act…
You probably have heard the term “triple net lease,” or NNN, when talking about commercial real estate. But what does it mean, exactly? In this post, we discuss triple net lease agreements and other types of net lease agreements. What Is a Triple Net Lease? To sum it up with a technical definition, a triple…
In this post, we take a closer look at owner-occupied commercial real estate, an essential concept within CRE. Here, we discuss the definition of owner-occupied commercial real estate and the difference between owner-occupied and non-owner occupied commercial real estate. Owner-Occupied Commercial Real Estate: a Definition As the term suggests, owner-occupied commercial real estate (abbreviated as…
Understanding the commercial zoning of a city is essential to making sense of commercial real estate. In this post, we discuss C1 commercial zoning, from a basic definition of zoning to some real-life examples of C1 Commercial Zoning taken from Southern California. What Is Zoning? Simply put, zoning is a tool local governments use to…
In today’s post, we talk about an essential commercial real estate tool: the BOMA floor measurement standards. Keep reading to learn what the BOMA standards are, how they have evolved over time, and why they matter. About BOMA The acronym BOMA stands for Building Owners and Managers Association. Founded in 1907 in the U.S., BOMA…
Due to a combination of factors, including climbing interest rates, buyers are less inclined to purchase industrial properties. Here’s what it means for owners and how SoCal CRE Team can help. Causes and Effects Needless to say, having fewer buyers on the market for industrial properties impacts the strategy and outlook of owners. Let’s take…
“As-is” clauses are one of the most common (and most commonly misunderstood) concepts in real estate. In this article we provide a basic definition of “as-is” clauses and discuss how they impact real estate transactions. A Word About Contracts Contracts are important. In fact, it’s no exaggeration to say that contracts are what make our…
Evidence continues to come in showing that the economy is slowly rebounding to its pre-pandemic state. The most recent case in point is retail, where sales per square foot have surpassed pre-pandemic levels for most categories. Data compiled by Datex Property Solutions and reported by the International Council of Shopping Centers (ICSC) shows that in-store…