Functional obsolescence is a type of obsolescence that occurs when a property no longer meets the needs of its current owner or occupants. This can happen for a number of reasons, including changes in technology, changes in taste, or changes in the local market. Functional obsolescence can also occur when a property is not properly … Read more
The term “absorption rate” is used to describe the rate at which properties are being sold in a given market. It is a important metric for real estate investors to track, as it can give them insight into whether the market is favouring buyers or sellers. The absorption rate is calculated by dividing the number … Read more
A power center is a type of shopping center, usually consisting of a large anchor store or stores, surrounded by a large parking lot and smaller outlying stores. Power centers are designed to serve a larger geographic area than a traditional shopping center, and are often located at freeway intersections or along major arterial roads. … Read more
A weighted average coupon (WAC) is the weighted average of the coupons of all the bonds in a portfolio. The weighting is based on the market value of each bond. The weighted average coupon is used to give a more accurate picture of the portfolio’s average interest rate. This is because bonds with higher coupons … Read more
What You Need to Know About Terminal Capitalization Rates Are high cap rate properties better investments? The answer to this question depends on what your definition of “better” is. If you’re looking for a property that will appreciate in value over time, then a high cap rate property is not necessarily a better investment. In … Read more
Commercial property is a term used in the real estate, construction, and investment industries to describe a property that is used for business purposes. The term can be used to describe a wide range of properties, from office buildings and warehouses to retail storefronts and apartment complexes. While the definition of commercial property can vary … Read more
Commercial real estate is defined as any property that is used for business purposes. This can include office buildings, retail space, warehouses, and more. The types of commercial real estate can vary greatly, but some common examples include office buildings, retail space, warehouses, and more. What are the three pillars of commercial real estate? 1. … Read more
A guarantee fee is a fee that is charged by a lender in order to secure a loan. This fee is generally a percentage of the loan amount and is paid upfront. The guarantee fee is used to cover the cost of default on the loan, should the borrower default on their payments. How long … Read more
Opcos: The Basics You Need to Know What is an Opcos? An Opcos is a type of investment vehicle that allows investors to pool their resources and invest in real estate projects together. Opcos are typically used by larger investors, such as institutional investors, to pool their resources and invest in larger projects. What are … Read more
What is a capitalization rate? A capitalization rate, or “cap rate” for short, is a measure of the expected return on investment from an asset. The formula for calculating a cap rate is the asset’s net operating income divided by the purchase price. For example, if an asset has a net operating income of $100,000 … Read more
