
What is Vacancy in Real Estate?
When you have available units to be occupied in a property but cannot lease them out to a prospective tenant for whatever reason, this is referred to as a vacancy.
When you have available units to be occupied in a property but cannot lease them out to a prospective tenant for whatever reason, this is referred to as a vacancy.
A private equity real estate GP fund is a business structure used by commercial real estate sponsors to raise capital for their required capital contribution in the project at hand.
Opportunistic investments in real estate are more speculative in nature, hence the word “opportunistic”. The types of real estate projects could entail simply renovating a highly distressed as-is property, the redevelopment of an existing structure, or a brand new development.
If you wanted to double your money every 5 years you would need to generate an annual rate of return of 14.4%.
A T-3 in real estate is an abbreviation for the “trailing 3-month” financial statements for a particular property. These financial statements will look back at all the income and expenses at the property over the last three months.
In commercial multifamily real estate investing, the breakeven occupancy is the occupancy number at which the property no longer cash flows and instead is not losing money or operating in a deficit.
The best unit mix for an apartment community does vary market to market. But as a general rule, having more 2-bedroom units than 1-bedroom and studio units will lend to a better-diversified unix mix for most apartment communities.
A rent premium is the extra amount a prospective tenant would pay for the same particular unit after it was renovated. Let’s say you made significant improvements to a property, and based on comparable properties, you could now charge $150 more for the same unit; the rent premium would be $150.
We examine the critical differences between investing in real estate, bonds, and stocks, and show investors which is the best investment type.
Real estate occupancy is a very simple calculation to perform, and many times can be done without a calculator. Occupancy is calculated with the following formula: