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Introduction to Lease vs. Own Commercial Real Estate Analysis

Property Metrics

Property owners benefit from increases in the asset’s value over time and from the tax benefits of depreciation. In addition, they may benefit from leasing excess space to other tenants, favorable loan interest rates, and the comfort in knowing that their rent isn’t subject to the whims of a landlord.

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Helping Lenders Navigate the Commercial Real Estate Appraisal Process

Simonson Real Estate

Our goal is helping our clients make sound investment decisions and solve real estate problems to achieve their financial and business goals. Lenders have a desire to get the appraisal completed in a timely manner to assist the borrower in focusing on their business or other investment needs. Clarify What Value or Values are Needed.

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Navigating the Appraisal Process – What You Need to Know

Simonson Real Estate

The appraiser’s role is to provide arm’s length, third-party, neutral, and impartial opinions about the value of real property and provide assistance to those who own, manage, sell, invest in, or lend money on real estate. Examples: A building owner has a single lease or multiple leases with tenants. Value Scenarios.

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Yield on Cost: A Beginner’s Guide

Property Metrics

Market rent is $28 per rentable square foot and you expect to pay $10 per square foot in fixed operating expenses as the landlord, with all other operating expenses reimbursed by the tenant. Yield on Cost Calculation: Value Add Example. The cap rate is the ratio of net operating income to the property’s market value.