Commercial Real Estate Leases - What You Need To Know

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Күн бұрын

Commercial Real Estate Leases - What You Need To Know // Commercial real estate leases are long-term commitments with a lot of legal language, that can materially impact the economics of an entire real estate deal.
And with many of these leases having terms of 5, 10, 15 years or more in some cases, making sure you understand all parts of a lease agreement is extremely important when buying commercial properties, or signing a new lease on a property within your own portfolio.
So whether you're not as familiar with commercial leases as you’d like to be, or you just want to make sure you have the big ticket items covered before getting into the industry, in this video, we'll cover four of the most important things that you need to know about commercial real estate leases, and why of each of these things is so important to the cash flows and returns on a deal.
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🕒 Timestamps 🕒
0:00 Introduction
0:52 Performance-Based Rent
3:11 Escalation Schedules
5:21 Lease-Up Costs
7:41 Operating Expenses
9:56 How To Learn More About CRE Lease Structures
#commercialrealestate #commercialrealestateinvesting
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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Пікірлер: 18

@BreakIntoCRE Жыл бұрын

Any other commercial lease terms that you'd like to see covered in more detail in a future video on the channel?

@damienrockstarthholyonofg3103 3 ай бұрын

Yes, could you do one for Realtors first time commercial rental deal for a smoke shop? What I mean is show a new realtor how to do a basic retail rental in a small strip mall for a vape shop. What should I negotiate, for a small retail building? Go through the entire process from meeting a client who wants to open a smoke shop to closing the deal and getting paid.

@Igor-ge1py 11 ай бұрын

Your content is worth it’s weight in gold. You deserve way more views.

@BreakIntoCRE 11 ай бұрын

Thank you! Great to hear you're finding the videos helpful!

@MichelleColletteGerant 3 ай бұрын

Thank you very much for all of your insight.

@juanlizarazo1265 11 ай бұрын

Awesome as always. Learning a lot on your acquisition course right now. Maybe a video on senior living will be great, specially regarding how value add on this type of assets affects their performance. Best.

@BreakIntoCRE 11 ай бұрын

Great feedback - thank you!

@barkhagupta3128 9 ай бұрын

Thank you Justin for the great content, would like to have a video on Argus modelling, Purchase Price Allocation, how to calculate leasing commission and if possible series on line items of cash flow - what they are and why they codded/treated as we do per different guidelines.

@benrefael445 11 ай бұрын

Can you make a video on the pros and cons of getting an MBA or MSRE for real estate acquisitions?

@BreakIntoCRE 11 ай бұрын

Great feedback - this isn't specific to acquisitions, but for help with the decision between an MBA or MSRE, check out this video at the 4:57 mark: kzfaq.info/get/bejne/htplkq15y9i-l58.html

@AQ33 10 ай бұрын

Do you recommend any property management/asset management education, be it a book or a course offered by an insitution? Love the videos, Thank You for your content!

@davidroldan6007 11 ай бұрын

Superb video! Huge value found here. Justin, I know location is extremely important, but from a career perspective, is it a good idea to start in NYC but move to another city a couple of years down the road?

@BreakIntoCRE 11 ай бұрын

Yes - I'm a big fan of starting in a major metro (even if planning to move to a different market in the future), and NYC is the best of the best.

@h00Lia 6 ай бұрын

💯

@timothybracken1728 11 ай бұрын

Isn't base year stop the same as FSG ?

@Otherself 11 ай бұрын

Yes

@BreakIntoCRE 11 ай бұрын

Check out these two videos for a more detailed breakdown of FSG and BYS structures: kzfaq.info/get/bejne/i7CBfciLvL-8g5s.html&pp=ygUkYnJlYWsgaW50byBjcmUgZXhwZW5zZSByZWltYnVyc2VtZW50 kzfaq.info/get/bejne/fN6ghKWmt8WRh40.html&pp=ygUkYnJlYWsgaW50byBjcmUgZXhwZW5zZSByZWltYnVyc2VtZW50

@timothybracken1728 11 ай бұрын

@@BreakIntoCRE @BreakIntoCRE so bys is a bit different than FSG in that BYS reimburses their share of increases in opex after base year 1? FSG tenant pays nothing , not responsible, at most electricity.. gets a good idea of how much they pay per month