Commercial RE term help

[Kobe McDaniel]

Hi all,

I’m looking over some data on a potential commercial acquisition. 

First, what are some key points I should looking for? 

Second, what does Lease Rate $19.00 Ann. Mean?

Thanks In Advance 

[Evan Polaski]

@Kobe McDaniel, your first question is probably far too broad to get any meaningful answers.

Commercial can be office, industrial, retail, mixed use, etc.  But you need to know the market, the demand drivers, the cap rates, the location (what makes a good retail center doesn't necessarily make a good office).  You should be looking at parking ratio, tenant mix, age, capex, lease rates and terms, NNNs, easements, environmental issues, noise restrictions, ADA compliance, sprinklers, fire risers, management, leasing, security, landscaping, estoppel issues, aging and delinquency reports, zoning, structural issues, construction style, signage, does leased square footage run from exposed side of drywall or center of all, where does tenant responsibility stop and LL responsibility start for things like plumbing, utility metering and bill back, service contracts.

I am guessing your second question means the lease rate is $19/psf/yr