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

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