On October 9, 2015, the Los Angeles City Council passed an ordinance to establish mandatory standards for earthquake hazard reduction. Article1, Division 93 - Existing Buildings of wood-frame construction Applies to buildings where a permit for construction was applied for before 1/1/78 and the ground floor portion...
While the internet continues to be an important game-changer in the way we all live and think, one industry that is really undergoing some massive innovation at the hands of technological advancements is retail. Almost every brick-and-mortar retailer now has an online presence from where...
A bright spot on the horizon is coming into focus -- commercial real estate lending. Despite its residential cousin’s slow economic recovery, commercial lending has been fast to regain its footing. Three years of consistent year-over-year momentum is leading some analysts to predict that 2014...
A clear understanding of expenses and revenues is needed by a commercial real estate investor to make an informed decision to purchase a property. The investor must comprehend which expenses are the responsibilities of the landlord and which expenses are paid by the tenants. Commercial...
Commercial real estate investment requires the careful review of an asset’s financial performance. Revenues and expenses must be clearly understood for an investor to make an informed decision. Documents obtained from the seller commonly include prior years’ financial statements, setups and proforma income statements, rent...
The decision by an investor to purchase a commercial real estate property requires a clear understanding of revenues and expenses. Leases must properly detail which expenses are paid by the tenants and which expenses are the responsibility of the landlord. Lease types include gross, modified,...
Net Operating Income is one of the most important components of financial analysis for commercial real estate investors. A few months ago we discussed another important financial index, CAP Rates, which are determined directly from the NOI. What is the NOI? The NOI is calculated as follows: NOI...
According to the California Department of Consumer Affairs, the biggest disagreement between landlords and tenants come after the tenant vacates the property, and it is often centered on the refund of the security deposit. Knowing what the law will and won’t allow will go a...
A fundamental component of the financial performance of commercial investment real estate is the rent (rental income). Depending on the type of lease agreement (gross, modified, NNN, percentage, etc), rental income may include tenant base rent payments, liability insurance, common area maintenance (CAM), property taxes,...
Because most commercial real estate properties are for investment, the decision by an investor to purchase the commercial property is primarily based upon a financial performance analysis of the asset. A couple months ago, we discussed CAP rates, one of the fundamental components of the...
