Harnessing the knowledge of how to compare lease options, no matter which commercial real estate ownership position, is key to professionally advising your clients, managing financial RE investment, or evaluating next business moves.
Six key takeaways from our webinar presentation:
1. A commercial property’s value relies heavily on its lease contracts. Commercial real estate revolves around leases, including lease rate, lease term, and overall lease value. Whether you specialize in lease representation, investment (cash flow), property management, lending, or appraising, the underlining value of the property is based on its lease contracts.
2. Understanding both perspectives is critical. Tenant and Landlord
3. Rentable vs. Usable Sq. Ft (primarily for office properties). TheAnalyst® PRO makes this quick and easy by calculating the tenant lease cost for both rentable and usable area.
4. Net Present Value (NPV). Calculating the NPV of a lease is an important factor in lease decisions and negotiations. Using the appropriate discount rate, NPV will determine today’s value and cost of an existing or proposed lease.
5. Due Diligence at its finest! Determine your client's needs. Analyze the market. Create your shortlist of lease alternatives in preparation for analyzing the options.
6. Analyze the CRE options quickly using TheAnalyst® PRO. Analyze a single lease, or analyze and compare up to 5 leases, side-by-side, in an extensive Summary and Detail PDF Report. TheAnalyst® PRO will complete a multi-page analysis from both the Tenant and the Landlord Perspectives. Quickly enter lease details to produce an impressive report showing:
Take a look at the webinar Case Study reports created in TheAnalyst® PRO:
Key Lease Terms Everyone Should Know:
• Parties to the Lease
• Types of Leases: Gross, Modified Gross, Absolute Net
• Tenant reimbursements: What IS and IS NOT included with NNN leases?
• Typical Terms
• Identification of Parties and Space, Use, Base Rent, Additional Rent: NNN Expenses, Term / Lease Commencement / Lease Termination, Insurance, Options