Cityfeet Resources
 
 


Fundamentals of CRE

Before embarking on a journey into the commercial real estate world, one must learn the nitty-gritty of the field - how properties are defined, what return rates are available, and the different types of investments.

 

Classifications Properties are classified by their submarket, as opposed to using street names and addresses like in everyday speech. Submarkets include more generalized locations such as neighborhoods, cities, and larger regions.

 

Leases Oftentimes, landlords and tenants create agreements, granting the tenant (lessee) the right to take possession of a property for a given duration. Rent is charged for lease agreements.

 

Subleases are leases granted by a tenant to another person to occupy some or all of the tenant's property for a specified term. Learn more details in our Leasing Guide.

 

Returns Annual returns on commercial real estate investment commonly succumb to two categories: cap rates and stabilized returns. A cap (capitalization) rate is the initial annual return (annual rental income of the property ÷ purchase price). The higher the CAP rate, the more rental income the property produces. Stabilized returns, conversely, are calculated after a property has been taken full advantage of. This is due to the fact that stabilized returns derive from leases with imminent expiration or other pending changes.

 

Investing Commercial real estate earnings vary greatly, depending on the risk an investor is willing to take.

 
Click Here to Search Sale Guide Listings
 Additional RESOURCES
 
©2018 Cityfeet.com - All Rights Reserved
Find Commercial Real Estate Listings - Cityfeet.com
Partner Sites:   Commercial Real Estate - LoopNet.com  Businesses for Sale - BizBuySell.com  Land for Sale - LandsOfAmerica.com

Company Overview: Cityfeet is the leading online commercial real estate network, connecting commercial real estate property owners and brokers to tenants, brokers and investors. Cityfeet offers commercial real estate products and services catering to the national and local needs of the commercial real estate industry. Cityfeet specializes in all commercial real estate property categories including office space, executive suites, commercial land, industrial property, retail space and businesses for sale. Cityfeet is the #1 source of free commercial real estate information for commercial real estate professionals and powers the commercial real estate area of many of the country's most popular websites including New York Times and Chicago Tribune. (See all partners)
 
Commercial Real Estate for Lease | Commercial Real Estate for Sale | Executive Suites | Businesses for Sale | Commercial Real Estate Broker Directory | Cityfeet Local | Cityfeet Local Site Map