Net yield
The net return removes operating costs from the gross return equation and therefore provides a cleaner picture of the actual profit generate...
Investment
Capitalisation rate
The Cap Rate is an indicator that expresses the relationship between the annual net operating income (NOI) of a property and its purchase pr...
The internal rate of return (IRR)
The internal rate of return (IRR) is the discount rate at which the net present value of all future cash flows from an investment (i.e. inco...
Property tax
Property tax is a type of tax paid by property owners. It applies to commercial properties as well as residential properties and agricultura...
Net operating income (NOI)
Net operating income (NOI) is the sum of all income from the property minus operating expenses. It excludes taxes, interest on loans and dep...
CAP
In the context of commercial real estate, the term "cap" is most often used in two contexts: cap rate (capitalization rate) and cap on opera...
Gross yield
Gross yield expresses the total annual rental income as a percentage of the purchase price or market value of the property. However, it does...
Sale - Leaseback
A transaction in which an owner sells a property and then leases it back to raise capital while continuing to use the space.
Triple net lease (NNN)
A triple net lease (sometimes abbreviated as NNN) is a type of lease where the tenant not only pays the rent, but also agrees to pay all the...
Commercial land plot
A commercial plot is a piece of land suitable for commercial construction, that is for activities involving business and trade. Commercial p...
Due diligence
Due diligence is a thorough risk analysis process conducted before finalizing a transaction, such as before purchasing a property or a busin...