Discover the most important commercial real estate terms you should know. Understanding this basic information is not only essential for analyzing every commercial investment accurately, but it also protects you from making bad decisions. Before investing in any commercial property, you must know these commercial real estate terms. Learn more here: https://www.commercialpropertyadvisors.com/commercial-real-estate-terms-you-must-know/
0:00 Basic Commercial Real Estate Terms 0:39 Building and Location Class 1:32 Gross Rental Income (GRI) 1:59 Vacany Factor 2:46 Effective Gross Income (EGI) 3:17 Operating Expenses (OpEx) 4:17 Net Operating Income (NOI) 5:18 Annual Debt Service (ADS) 6:05 Cash Flow 6:50 Commercial Real Estate Decision Making Terms 8:20 Cash on Cash Return (ROI) 9:34 Capitalization Rate (Cap Rate) 12:22 Debt Coverage Ratio (DCR) 15:07 Bonus: Actual vs Pro Forma Explained