General questions about commercial properties, owner/user opportunities, investment properties, land, office, retail, industrial, medical, market conditions, due diligence, financing, and the buying process.
A full-service lease generally includes many operating expenses within the rental payment. Depending on the lease, the landlord may be responsible for items such as property taxes, insurance, maintenance, utilities, and common area expenses. Every lease agreement is unique, so it’s important to understand exactly what is and isn’t included before signing. If you’re comparing…
A modified gross lease is a commercial lease in which the landlord and tenant share responsibility for certain operating expenses. Unlike a Triple Net (NNN) lease, where tenants often pay most property expenses, a modified gross lease divides expenses according to the terms negotiated between the parties. Because every lease is different, it’s important to…
CAM stands for Common Area Maintenance. These charges generally help cover the cost of maintaining shared areas within a commercial property, such as parking lots, landscaping, sidewalks, lighting, and similar common spaces. The way CAM charges are calculated and paid depends on the lease agreement. Buyers, landlords, and tenants should understand how these expenses are…
A Triple Net (NNN) property is one in which tenants generally pay rent along with certain property expenses such as real estate taxes, insurance, and common area maintenance, as outlined in the lease agreement. Many investors appreciate NNN properties because operating responsibilities and expenses are often shared differently than with other lease structures. However, every…
Although they’re often discussed together, ROI and NOI measure different things. Net Operating Income (NOI) focuses on how a property performs by comparing its income to its operating expenses. Return on Investment (ROI) looks more broadly at how well your overall investment is performing based on the money you’ve invested. Investors often use several financial…
Net Operating Income (NOI) is one of the most common financial measurements used to evaluate income-producing commercial real estate. It represents a property’s income after normal operating expenses have been deducted but before mortgage payments, income taxes, depreciation, and certain other owner-specific expenses. NOI helps investors compare the financial performance of different properties using a…
An easement grants another party the legal right to use a portion of a property for a specific purpose without owning it. Common examples include utility easements, drainage easements, shared access, or ingress and egress rights. Easements may affect how a property can be used or developed, making them an important part of the due…
A survey helps identify the property’s legal boundaries and may reveal easements, encroachments, access issues, setbacks, and other physical characteristics that could affect ownership or future development. Depending on the property and lender requirements, a current survey may be an important part of due diligence before closing. If you’re evaluating commercial property, I’d be happy…
Title insurance helps protect property owners and lenders against certain issues involving ownership rights, liens, or defects that may have existed before the property was purchased. It is a common part of many commercial real estate transactions. A title company typically performs a title search before closing, but title insurance provides additional protection should certain…
Contingencies are conditions that must be satisfied before a commercial transaction proceeds to closing. Common contingencies may relate to financing, inspections, due diligence, environmental reviews, title matters, or other agreed-upon requirements. Contingencies help establish expectations between the parties and provide time to evaluate important aspects of the property before completing the purchase. Every transaction is…