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The Essential Elements that Make Up Risk/Reward Decisions in Commercial Real Estate Investment

Writer: Jeff Gitt
Jeff Gitt
Aug 7, 2025
1 min read
Cost Per Sq. Ft. of the building and lease rate per sq. ft.The Credit Worthiness of the tenant
The Length of the primary term of lease Any increases in the leaseLocation of the property The demographics and traffic count of the area Any easement issues or ingress egress problems Visibility. Competition of the asset group in the same area Loans available on this type of investment when purchasing. Value Add of Stabilized asset Sales of the tenant if retailIncome and growth of the population in the area. Capital expenditures needed Any outs in the leasesDepreciation allowed for the property. Assumable loans or defeasance costs Any skeletons in the closet like environmental issues Any tax advice needs to be addressed with your CPA or Tax attorney when purchasingCall to discuss these and other issues concerningcommercial real estate investments

 
 
 

15 Comments


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Noha
Noha
Apr 01

Smart risk/reward decisions are all about getting the best value with less risk. The same idea applies to everyday shopping—using the Albert Heijn AH Bonuskaart helps you save money and make smarter spending choices.

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Ella Jack
Ella Jack
Feb 09

Great topic risk and reward are central to every commercial real estate decision. Beyond projected returns, factors like tenant stability, lease terms, and market trends play a major role. Reviewing these details carefully much like checking color printer test pages before finalizing a print helps investors make more confident and informed choices.

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Disclaimer

Always consult with your financial advisor before doing a commercial transaction.

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The material contained herein does not constitute an offer to sell and is not an offer to buy real estate or securities.  Investments are not suitable for all investors, and some investments are only available to accredited investors.  Such offers are made only by a sponsor's memorandum.  No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable.  Investors may lose all of their investments. Past performance is not indicative of future results and does not guarantee current or future performance. The information provided is as of the date referenced. Securities offered through Great Point Capital, LLC, Member FINRA/SIPC.  Gitt Realty Services, LLC, and Great Point are not affiliated.

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