The five emerging models for flexible space providers
Friday, May 10
WeWork, Airbnb, Common, Knotel, Sonder, Industrious, Starcity, Selina… All flexible, fast-growing, high-service space providers. All have emerged this decade and have made a noticeable mark on the way occupiers think about real estate. Which brands will emerge as winners or flame out through this...
Lenders are in no rush to drop LIBOR
Tuesday, April 23
The London Interbank Offered Rate. Simply, it’s the benchmark rate that represents short-term borrowing rates between banks.LIBOR has been used extensively in real estate lending for quite a while, both for floating rate loans (whose rates move up and down based on changes in LIBOR) and for deter...
3 ways that Cap Rates affect your commercial mortgage
Monday, March 25
Cap rate, short for capitalization rate, is a key metric in commercial real estate. As the ratio between a property investment’s net operating income and its open-market value, cap rate is a measure of how much a property’s prospective cash flows are worth in combination with the level of risk. T...
Hospitality is the Cranberry of Commercial Real Estate
Tuesday, March 19
Hospitality in real estate has always come in a few variations: full-service hotels, limited-service hotels, motels, hostels, bed & breakfasts, and a few others.But these days, we’re seeing hospitality increasingly grow beyond an asset class, and become a recurring theme across all the tradit...
Why lenders may hold an interest reserve
Monday, March 04
Put out money, charge interest, manage risks.If a lender can do that successfully, they make money. But a failure to manage risks can see the lender out of their money, and maybe out of a job.The list of potential risks in a commercial real estate deal is myriad. For a majority of commercial loan...
Prepayment penalties for Commercial Mortgages
Monday, February 18
Lenders put out money in order to make more money in return. Banks in particular like to be able to forecast the money they make on their money, so a nice, juicy, long term loan is a favorite way to do it.Paying back the bank’s loan early can mess up that comfortable equation. They’d rather you k...