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Why Industrial Space for Rent Is the Hottest CRE Sector in 2021

The Robert Weiler Company

Classification is a way to differentiate specific market features for investors. Commercial real estate investors are usually looking for a specific class of property for their capital. These buildings are the latest and greatest in state-of-the-art warehouse rentals and attract high-quality investors and tenants alike.

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Eleven Types of Risk in Commercial Real Estate

Property Metrics

In some cases, this can result in the cash flows no longer creating an acceptable return for an investor. A liquid asset is one that can be sold immediately at market value. If an owner had to sell a piece of real estate by the end of the day, chances are that it would be for a price far below market value.

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Introduction to Lease vs. Own Commercial Real Estate Analysis

Property Metrics

In addition, lease payments are qualified operating expenses so they reduce the company’s taxable income and leasing relieves the company of the burden of property management and does not tie up capital that could be otherwise used to fund growth. A rational actor would choose the option with the highest NPV.