retail real estate: Evaluating Commercial Tenants - 2 Important Ratios
- 02/07/11 11:41 AM
It's been a little while since I added to my series on evaluating commercial real estate investments. If you recall, we were analyzing a small retail property in downtown Reading, PA. We looked at several aspects of the property's performance, from NOI through IRR, but one thing that we did not look at was the quality of the tenant. There are several things to consider when looking at a potential tenant, but today I am just going to cover two important ratios that you should look at when evaluating the balance sheet of a potential tenant. The first ratio I always … (3 comments)
retail real estate: 5 Questions To Ask When Considering Your Retail Center's Tenant Mix
- 02/04/11 01:58 PM
Like most commercial real estate, value is created in retail properties through effective leasing. One important aspect to consider when leasing your retail real estate is your tenant mix. In other words, you need to consider how your tenants businesses relate to one another. Here are five questions to ask your self when evaluating a new tenant for your retail property in Reading, PA: Does the new tenant compete with your existing tenants? For most types of retail properties, it is not a good idea to lease vacant spaces to tenants that directly compete with your existing tenants. This is pretty obvious, but … (6 comments)
retail real estate: Commercial Real Estate - The Four Major Food Groups
- 01/05/11 12:20 PM
I was speaking with a group of real estate investors in Reading, PA yesterday. Most of them are involved in commercial real estate, but one of them was just starting of in residential investing. I guess this doesn't happen too often, because our discussion made me realize that there is really a whole separate language used in commercial real estate. I'm not talking about technical terms like NOI, Cap Rate, DSCR, and IRR. Those terms are obvious, but some of the slang that is thrown around is what I've never really noticed. The one that stuck out to me yesterday was 'The Four Major Food … (0 comments)
retail real estate: 6 Businesses That Make Great Sale Lease-Back Transactions
- 12/31/10 10:42 AM
I received a few questions after I mentioned Sale Lease-Back transactions in my post yesterday, ‘7 Reasons to Call Your Commercial Real Estate Agent'. Apparently this is a new concept for many business owners here in Reading, PA. So I wanted to give a small list of companies that are well suited for these types of transactions. 1. Car Dealerships 2. Pharmacies 3. Distribution/Wholesalers 4. Funeral Homes 5. Doctor Offices 6. Restaurants This list is far from exhaustive, but these are some of the more common ones. Really any business that owns and occupies a property in its entirety is a candidate for a Sale Lease-Back transaction. … (2 comments)
retail real estate: Evaluating Commercial Real Estate Investments - Calculating Cash on Cash Returns
- 12/29/10 12:42 PM
I'm sure if you've read my earlier posts you may be wondering when this will all end, but today we are finally getting to the good stuff: Returns. Why are you investing in commercial properties in Reading, PA? I'm guessing it's because you'd like to make some money. One measure of how much money you'll make on your investment is Cash on Cash Returns, also know as the Equity Dividend Rate. Your Cash on Cash Return is a measure of how many dollars you receive on an annual basis for every dollar that you invested. Let's continue the example of our small retail property … (1 comments)
retail real estate: Evaluating Commercial Real Estate Investments - Calculating DSCR and LTV
- 12/28/10 12:35 PM
Hopefully you now have a good hanldle on cap rates, and we can move forward with analyzing that small retail property in downtown Reading, PA. Once you have an idea about what a property is worth, you need to figure out how you are going to pay for it. For most investors this means getting a mortgage. So how do you know how large of a mortgage your property will qualify for? Notice this is about what the property will qualify for, not you personally. For commercial properties, the property itself is often more important than the borrower when qualifying for … (0 comments)
retail real estate: Greater Reading | Berks County | PA | What is Commercial Real Estate
- 12/18/10 02:21 PM
Earlier today I was speaking with a friend of mine who invests in residential real estate. It's occurred to me that almost all of my friends invest in real estate, but that's not the subject of my blog today. During our conversation, I realized that although my friend knew a lot about residential real estate, she didn't have a great understanding about what I mean when I talk about commercial real estate in downtown Reading, PA. She thought that only real estate moguls invest in commercial real estate. She thought that commercial real estate meant multimillion dollar office building and regional … (0 comments)
retail real estate: Downtown Reading | Berks County | PA | Commercial Real Estate - Cash or Trade?
- 12/15/10 11:46 AM
I've been talking a lot about the tremendous opportunities to invest in commercial real estate in Reading, PA. Obviously the flip side of this story is the tough situation that a lot of commercial real estate sellers are facing. To get properties sold today requires a lot more than putting a sign out front and running an ad or two. Sometimes it takes a little creativity. One interesting idea that I've seen used in tough markets is trading or exchanging. Why would you ever want to take anything other than cash as payment for your commercial property? For one, it might be that the only … (0 comments)
Commercial Real Estate blog discussing investing, selling, and leasing retail, office, industrial, residential, mixed-use, hospitality, self storage, and other commercial real estate in the greater Reading, PA market.
Tweet
It's been a little while since I added to my series on evaluating commercial real estate investments. If you recall, we were analyzing a small retail property in downtown Reading, PA. We looked at several aspects of the property's performance, from NOI through IRR, but one thing that we did not look at was the quality of the tenant. There are several things to consider when looking at a potential tenant, but today I am just going to cover two important ratios that you should look at when evaluating the balance sheet of a potential tenant.
;)
;)
