Important information for owners of commercial office property from the 16th Annual SWFL CCIM District Commercial Real Estate Outlook Conference:
Building individual and company net worth daily through Commercial Real Estate in SWFL!
Monday, February 22, 2016
Friday, February 19, 2016
CCIM SWFL Retail Market Vacancy Decreases 6.6%
Market update from the 16th Annual SWFL CCIM District Commercial Real Estate Outlook Conference a few weeks ago. Great information for our retail clients!
Tuesday, February 16, 2016
U.S. Metropolitan ECONOMIC OUTLOOK from CCIM Quarterly Market Trends (Q4 2015)
The leading market index uses an array
of factors to assess the relative health of
an individual market. The factors
include job creation, unemployment
claims, bankruptcy filings, and permits
for construction. The first two factors
provide an indication of potential
business expansion/contraction as well
as of labor market health and a leading indicator of multifamily rental growth.
Bankruptcy filings allude to the health
of the business environment, while
the permits data point to business
plans and have an indirect impact on
inventories.
The leading indicator is weighted
based on both the current measure as well as its recent trend or lagged
measures. These weighted measures
are then added to create a score.
This score is then ranked relative to
a fixed scale where a measure of 85
or better indicates a robust market,
75 to 85 a strong market, 65 to 75 an
average market, and a score below 65
coincides with a weak market.
(Click on above picture to enlarge)
Friday, February 5, 2016
What is a COI and who should be on it?
Answer: The Certificate of Insurance (COI) is used to verify the existence of insurance coverage under specific conditions granted to individuals listed on the document. More specifically, it lists effective date of the policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability.
Tuesday, February 2, 2016
What is a CAP Rate?
Answer: The definition of a Capitalization Rate (CAP) is the rate of return on a real estate investment property based on the expected income generated by the property. CAP rate is used to estimate the investor's potential return on his/her investment. This is calculated by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property.
Capitalization Rate = Yearly Income/Total Value
Monday, February 1, 2016
What is a Letter of Intent (LOI)?
Answer: A Letter of Intent is a non-binding agreement between two or more parties who look to enter into a real estate transaction such as a lease or sale. It provides an outline of the proposed transaction, which can be negotiated before going to contract. If either party isn’t satisfied with the terms, a counteroffer can be proposed. If accepted, the LOI is revised and reviewed again by both sides. Either party can reject the deal before the final sale contract or lease is signed.
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