Commercial real estate (or CRE) is a property used exclusively for business or workplace purposes or to generate CASH FLOW for the owner or lessee.
Property's profitability after deducting expenses.
Plays a crucial role in assessing a property's value.
Prominently featured on your income statement.
FORMULA NOI = gross operating income of a property – operating expenses
Expresses an investor's annual return as a percentage.
Investment profitability based solely on net operating income, excluding financing and taxation.
FORMULA Cap rate = Net Operating Income (NOI) / Property's Market Value or Sales Price
Property's profitability after deducting expenses.
Plays a crucial role in assessing a property's value.
Prominently featured on your income statement.
The annual cash flow is the amount of money that is moved in and out of the company per year.
FORMULA Annual Cash Flow = NOI – debt service
The cash-on-cash return is the ratio of annual cash flow before tax to the total cash invested in the property.
FORMULA Cash-on-Cash Return = Annual cash flow / down payments
Price of rent for commercial real estate is typically discussed per square foot.
Wherever you plan to invest or expand in the US, rely on our expertise to guide your commercial real estate decisions.
Director Florida Area
Licensed Associate Real Estate Broker
Director of NY and Tri-State Area
Founding Member
Licensed Real Estate Salesperson
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