This month’s newsletter has just been released! Check out the latest tips for tenants and users of commercial real estate space.
In this issue
- How Adding Value Means Increased Cash Flow
- Factors To Consider For An Apartment Investment
- The Cancellation Clause In A Commercial Lease
- How Property Management Increases Value
Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold…..(more)
When any particular apartment building is under consideration for purchase, there are a number of factors that should be considered. Here are some of the more important points:…..(more)
Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term……(more)
Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values…….(more)
