The article below discusses the differences between triple net (NNN) leases and other types of leases.  There are a few points in this article where I disagree with the authors.   1. Under many full service gross leases the landlord pays for everything including taxes,  insurance, maintenance, utilities, janitorial service and management fees and the tenant pays a gross rent to reimbures the landlord for all those expenses.  This lease form is still used in many leases to government tenants.   2. The other points about rapid increases in net operating income […]

ADVICE FOR THOSE SEEKING COMMERCIAL PROPERTY FINANCING The following article by Joseph Caton appeared in the February 2007 issue of “National Real Estate Investorâ€? and sheds some light on “conduitâ€? or “securitizedâ€? loans which are becoming a larger part of the commercial property financing scene each year.  We advise anyone seeking financing for commercial property to ask their mortgage broker or lender to fully explain the pros and cons of any financing they are exploring – interest rates, amortization terms and earlier maturity terms, prepayment penalties, lock out provisions, yield […]

GROWTH PROJECTIONS FOR 2006 TO 2011The projections below for population and employment growth were published recently by Integra Realty Resources, Inc. in its “Viewpoint 2007″ publication. Integra is a large Real Estate Counseling and Valuation firm with over 50 offices throughout the United States. It seems likely that high growth rates in population and employment should lead to opportunities in commercial real estate investments in these cities. 1. POPULATION GROWTH – TOP 10 MARKETS 1. NAPLES, FL2. LAS VEGAS, NV3. AUSTIN, TX 4. PHOENIX, AZ 5. ORLANDO, FL 6. ATLANTA, […]

In the last few weeks there have been several reports in professional publications describing  trends in commercial real estate capitalization rates and demand for different types of commercial real estate.    During 2006 there were reports of some institutional buyers holding back on new purchases waiting for capitalization rates to move upward in response to rising mortgage rates.  These players appeared to be in the minority and the “cap rate compressionâ€? they were hoping would diminish continued to exist for most of 2006 as strong demand from many other buyers […]