Commercial Real Estate
Whether you're looking to invest in or sell commercial real estate, we will advocate fiercely on your behalf to secure the best possible deal.
Your interests are always our top priority. Commercial real estate constitutes one of the three primary categories real estate, alongside residential and industrial properties. As the name suggests, commercial real estate is used for business purposes, whereas residential real estate serves living needs, and industrial real estate is focused on manufacturing production. While some businesses own their premises, it's more common for investors to the buildings and lease them to various companies. Commercial lease rates are typically expressed in annual rental dollars per square foot, unlike residential leases which may be quoted monthly or annually.
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Types of Commercial Property Leases
There are four main types of commercial property leases, each defining varying responsibilities for landlords and tenants:
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A single-net (N) lease requires the tenant to cover property taxes.
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A double-net (NN) lease adds insurance payments to the tenant's responsibilities alongside property taxes.
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A triple-net (NN) lease further includes maintenance costs in the tenant's obligations.
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An absolute triple-net lease, also known as a bond-able hell-or-high-water lease, places all expenses and repairs, including structural issues, on the tenant.
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In a gross lease, the tenant pays only rent, while the landlord takes care of property taxes, insurance, and maintenance.
Commercial Real Estate Classifications
Commercial real estate is classified into different categories. For instance, office spaces fall into three classes:
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Class A includes the highest-quality buildings with superior aesthetics, location, and infrastructure.
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Class B buildings are typically older and less competitive in pricing compared to Class A, often appealing to investors for renovation opportunities.
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Class C buildings are the oldest, generally over 20 years old, in less desirable areas, and require significant maintenance.
Investing in Commercial Real Estate
Investing in commercial real estate can be highly profitable and act as a solid safeguard against stock market fluctuations. typically earn returns through property appreciation upon sale, though the majority of income is derived from rental payments made by tenants. Properties are often sold as individual buildings—such as a single office, restaurant, or factory. However, developers seeking additional capital expansion or quicker returns may opt to divide the project into smaller units instead of selling it as a whole.
Advantages of Commercial Real Estate
One of the primary benefits of commercial real estate is its appealing leasing rates. In regions where new construction is restricted by land or regulations, commercial properties can yield impressive returns and substantial monthly cash flow. While industrial buildings usually have lower rental rates, they also incur reduced overhead costs compared to office towers. Additionally, commercial real estate typically features longer lease agreements with tenants compared to residential properties, providing stability in cash flow, especially when occupied by long-term tenants.
Information for Buyers
Ensure you are purchasing the assets, not the business itself. If the seller is a corporation or LLC, you should never buy the stock of the business. Instead, propose to purchase the assets and establish a separate company as the buyer. This approach offers two advantages: first, you benefit from improved tax treatment, as your "tax basis" on the assets reflect the price you paid rather than the seller's original investment; second, by acquiring only the assets, you avoid assuming any existing liabilities, such as debts or lawsuits against the seller.
Business Opportunity
If you're looking to invest in a business or sell your own, we will advocate fiercely on your behalf to secure the best possible deal. Your best interests are our top priority.
Explore business opportunities as a pathway to legally immigrate to the U.S. with an EB-5 or E-2 Visa.
Hospitality
Hotels and resorts stand out among real estate assets, presenting distinct investment opportunities that demand a specialized skill set for property identification, due diligence, negotiation, and transaction closure.
Our team of hospitality professionals boasts over 50 years of combined experience. We cater to a range of properties, from budget hotels to luxurious mixed-use resorts. Our experts focus on hospitality real estate and valuation services, representing both buyers and sellers:
Identify and target hotel assets based on investor requirements
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Offer advisory services for hotels and assess strategies
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Conduct and manage market and financial due diligence
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Provide assistance and advice on structuring transactions in the hotel industry, including acquisitions and dispositions
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Connect with suitable business partners and identify potential sources of debt and equity financing for hotel acquisitions and developments.
