Industry news, keen insights and thoughtful, informed analysis. Expert tips and best practices for financial modeling, underwriting, valuation, due diligence and lease abstraction and lease administration. Trends we’re seeing in commercial real estate lending, capital markets and investment. And much, much more. If you’re looking for fresh takes and an expert point of view on the commercial real estate industry, you’re definitely in the right place—the Realogic Blog.
Welcome to the fourth post in our series on the ABCs of commercial real estate leases. In this post, we’re going to begin a discussion on Lease Options, another fundamental component of commercial real estate leases. We’ll start by explaining what a commercial real estate... Read More »
This post is the third in our series entitled “The ABCs of Commercial Real Estate Leases”. The series is meant to both provide an overview of commercial real estate lease fundamentals for those who are new to the industry, and serve as a helpful and... Read More »
In the next two installments in our series on lease fundamentals, “The ABCs of Commercial Real Estate Leases”, we’re going to address Rent and Additional Recoverable Expenses, an important topic considering Base Rent and Recoverable Expenses account for the lion’s share of revenue from commercial... Read More »
On the surface, commercial real estate leases might not seem all that exciting. They tend to be long, formal, detailed documents filled with arcane real estate terminology and lengthy, intimidating legal clauses—not exactly most people’s idea of light bedtime reading. But, leases are the cornerstone... Read More »
Expense Gross Ups—or Grossing Up– is a term that frequently appears in commercial real estate leases. Grossing Up is a process for calculating a tenant’s share of a building’s variable operating expenses, where the expenses are increased for expense recovery purposes, or Grossed Up, to... Read More »
One topic that draws a lot of interest on both the Realogic Blog and in our commercial real estate training classes is rent increases tied to the CPI, the US government’s Consumer Price Index. What is the CPI, what does it have to do with... Read More »
Leases are the fundamental building blocks of commercial real estate. Whatever the endeavor—underwriting, due diligence, financial modeling, lease administration— it starts with the humble and unassuming commercial real estate lease, a detailed, complex and usually lengthy document that serves as a legally binding contract between... Read More »
The term “Pro Rata” means proportional or in proportion. In the context of commercial real estate, the term “Pro Rata Share” is a method of calculating a tenant’s share of a building’s expenses based upon a calculation defined in a tenant’s lease. Pro Rata Share... Read More »
Another lease-related topic that generates a lot of interest is percentage rent. That’s been especially true the last two or three years, as changing consumer shopping habits have shaken up the retail industry and, by association, retail real estate. For those unfamiliar with the concept,... Read More »
Updates Include New Information, Helpful Tips and Insights, Detailed Examples, Links to Additional Resources A few years back, we ran a series of blog posts on the fundamentals of commercial real estate leases. The posts explained the four main components of commercial real estate leases,... Read More »