by Chad Massaker | Mar 29, 2023 | Commercial Real Estate, Flex, Ft. Lauderdale, Industrial, Land, Leasing, Miami, Office, Palm Beach, South Florida
Commercial leases are agreements between a landlord and a tenant that allow the tenant to occupy a space for commercial purposes. There are several types of commercial leases, each with its own unique features and benefits. Here are some of the most common types of commercial leases:
- Gross lease: A gross lease is a lease in which the tenant pays a single flat rate for rent, and the landlord is responsible for paying all of the property expenses, including utilities, taxes, and maintenance.
- Net lease: A net lease is a lease in which the tenant pays a base rent and also pays for some or all of the property expenses, such as property taxes, insurance, and maintenance. There are three types of net leases: single net lease, double net lease, and triple net lease, each with different levels of responsibility for the tenant. gg
- Percentage or Performance lease: A percentage lease is a lease in which the tenant pays a base rent plus a percentage of their sales revenue. This type of lease is often used for retail properties.
- Modified gross lease: A modified gross lease is a lease in which the tenant pays a base rent, and the landlord is responsible for paying some property expenses, while the tenant is responsible for paying others. This type of lease is often used for office spaces.
- Ground or Land lease: A ground lease is a lease in which the tenant leases only the land and is responsible for constructing any buildings or structures on it. This type of lease is often used for long-term commercial developments, such as shopping centers.
The type of commercial lease that is most appropriate for a particular business depends on a variety of factors, including the nature of the business, the length of the lease, and the financial resources of the tenant.
by Chad Massaker | Mar 27, 2023 | Flex, Ft. Lauderdale, Industrial, Land, Leasing, Miami, Palm Beach, Retail, South Florida
by Chad Massaker | Mar 15, 2023 | Commercial Real Estate, Commercial Real Estate Investment, Flex, Industrial, Land, Leasing, Multifamily, Office, Retail
DSCR stands for Debt Service Coverage Ratio, which is a financial metric used to measure a company’s ability to pay its debts. It is a ratio of a company’s net operating income (NOI) to its debt service payments, which includes both principal and interest payments.
The debt service coverage ratio is calculated by dividing the company’s NOI by its total debt service payments. The higher the DSCR, the more capable the company is of paying its debts.
- A DSCR of 1 indicates that the company is generating just enough income to cover its debt service payments.
- A DSCR ratio of less than 1 means that the company is not generating enough income to cover its debt payments.
- A DSCR of more than 1 indicates that the company is generating sufficient income to cover its debt payments, with higher ratios indicating a stronger financial position.
Lenders use DSCR as a measure of creditworthiness when considering loan applications. A DSCR of 1.2 or higher is generally considered a good indicator of a company’s financial health, although the ideal ratio may vary depending on the lender and industry.
However, it’s important to note that DSCR is not the only factor that lenders consider when assessing creditworthiness. Other factors such as the company’s financial history, cash flow, collateral, and industry trends are also important in determining whether a company is creditworthy.
by Chad Massaker | Mar 15, 2023 | Commercial Real Estate Investment, Industrial, Land, Leasing, Multifamily, Office, Retail
“The Complete Guide to Real Estate Finance for Investment Properties” by Steve Berges: This book covers the financial aspects of real estate investment, including commercial real estate.
“The Due Diligence Handbook For Commercial Real Estate” by Brian Hennessey: This book is a comprehensive guide on how to conduct due diligence on commercial real estate properties.
“The Intelligent REIT Investor: How to Build Wealth with Real Estate Investment Trusts” by Stephanie Krewson-Kelly and R. Brad Thomas: This book explains how to invest in real estate investment trusts (REITs), which are a popular way to invest in commercial real estate.
“Real Estate Investing For Dummies” by Eric Tyson and Robert S. Griswold: This book provides an overview of real estate investing, including commercial real estate.
“The Millionaire Real Estate Investor” by Gary Keller, Dave Jenks, and Jay Papasan: This book provides advice on investing in real estate, including commercial real estate, and shares the strategies of successful investors.
“Commercial Real Estate Investing” by Dolf de Roos: This book provides a step-by-step guide to investing in commercial real estate, including how to find properties, finance deals, and manage properties.
“The ABCs of Real Estate Investing” by Ken McElroy: This book covers the basics of real estate investing, including commercial real estate, and provides tips for finding and analyzing properties.
Books to Read if You’re Considering a Career in Commercial Real Estate:
“Thrive: Ten Prescriptions for Exceptional Performance as a Commercial Real Estate Agent” by Blaine Strickland: Proven strategies to accelerate your commercial real estate brokerage career.
“Adapt: Disruption Is Coming to Commercial Real Estate Brokerage.” The nine forces that are poised to disrupt your world.
DSCR stands for Debt Service Coverage Ratio, which is a financial metric used to measure a company’s ability to pay its debts. It is a ratio of a company’s net operating income (NOI) to its debt service payments, which includes both principal and interest payments.
“The Complete Guide to Real Estate Finance for Investment Properties” by Steve Berges: This book covers the financial aspects of real estate investment, including commercial real estate.