The State Oil Fund of Azerbaijan (SOFAZ) plans to invest in Australia’s commercial real estate market, according to The Wall Street Journal. Up to five percent of the organization’s investment portfolio may be allocated to investment in Many males have … Continue reading →
Net present value (NPV) is the difference between the present value of a time series of cash inflows and the present value of a time series of cash outflows (or initial investment and fees). Present value is calculated as follows: … Continue reading →
The due diligence period in a commercial building sale is usually 45 to 60 days, during which the buyer and the broker work together to study the property. The factors to study include: Building Inspection: Structural and mechanical components must … Continue reading →
Investment sales improved in 2012 compared with 2011. Year-to-date volume is at $225 billion, according to John Salustri, quoting data from Real Capital Analytics (RCA). November volume stood at $19.5 billion – a 40 percent increase over November 2011. RCA … Continue reading →
A zero cash flow property (“zero property”) is a property with a long-term (20+ years), stable lease by a credit tenant attached to it. The investment is highly financed and all of the rent usually goes to the lender. Values for zero … Continue reading →
In July the Montana Supreme Court ruled in Redding v. Montana that a TIC without usage rights is a security. A TIC (tenancy in common) is a property interest arrangement under which two or more people co-own real estate without … Continue reading →
Crowdfunding is a process by which a company or developer will fund a project by selling small amounts of equity to many investors. In commercial real estate, crowdfunding can help to fund the urban infill projects that are often not … Continue reading →
Calculated Risk reports that the October Architecture Billings Index (ABI) score (produced by AIA – The American Institute of Architects) was 52.8 – up from 51.6 in September. The index reflects the nine to twelve month lag time between architecture billings … Continue reading →
RevPAR (revenue per available room) – a metric of hotel occupancy is increasing at a slower pace than it did in the initial years following the 2008 economic downturn, according to a CoStar report (quoting data and analysis from Wells … Continue reading →
Within a few years, new accounting standards – agreed upon by FASB and IASB and aimed at increasing transparency – may require landlords and tenants to include operating leases on their balance sheets as either assets or liabilities – a … Continue reading →