What are buyers looking for when it comes to Commercial Real Estate Investment (CRE)?
When it comes to investing in CRE, buyers look at several factors. Below is a short list of items investors are going to look at:
Length of lease – If all goes as planned, how long should I expect cash flow?
Quality of the tenant – What is the chance of default?
Rent Escalations – Escalations in rent = increase in returns
Location of the building – What happens if/when the current tenant leaves?
These factors all plat into the return. When you are ready to sell or buy a commercial real estate asset, we would welcome the opportunity to discuss your options.