Frequently Asked Questions

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Commercial real estate (CRE) is property used exclusively for business-related purposes or  provides a workspace rather than a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating businesses. It can be anything from an office building to a residential duplex,  a restaurant, or warehouse. Individuals, companies, and corporate interests can make money from commercial real estate by leasing it out, or holding it and reselling it.

When listing a property, it's made public for a broad audience, fostering a competitive environment with multiple offers. In contrast, off-market sales are discreet and targeted, often used for high-return investments. This exclusive and confidential approach is shared with a select group, including private equity groups, investors, developers, or owner-users, tailored to offer both buyers and sellers the benefits of discretion, exclusivity, and customization in transactions.

A 1031 exchange, also known as a like-kind exchange, is a provision in the U.S  Internal Revenue Code that allows for the deferral of capital gains taxes on the sale of certain types of property when the proceeds are reinvested in another similar property. 

 A "cap rate," is a fundamental metric used in commercial real estate and investment analysis. To get the cap rate, you take the net operating income (NOI) and divide it by the current market value or acquisition cost. The cap rate is a useful tool for evaluating the potential return on a property, but it has limitations and should be used in conjunction with other key indicators like market conditions, property location, financing terms, operational efficiency, and your overall investment strategy.