Topic
Due Diligence
Guides and real deal teardowns on due diligence.
How I actually read a deal
Why a cap rate alone lies, and the five things I actually adjust for before I trust a number.
Read it →The Five Cores: how to actually pick an advisor
The five things I'd look for in anyone I trusted to sell a net-lease asset, and what it costs you when one is missing.
Read it →Cap rate, explained, and how to actually use it on retail property
What a capitalization rate is, how to apply it to retail investment property, what it hides, how to use it as a strength, and the best- and worst-case ways it plays out.
Read it →Net operating income (NOI): the number your whole deal rests on
What net operating income is, how to apply it to retail investment property, the ways it gets inflated, how to use a clean NOI as leverage, and the best/worst-case outcomes.
Read it →Debt service coverage ratio (DSCR): the number your lender cares about most
What DSCR is, how it applies to leveraged retail investment property, what to watch for, how to use headroom as a strength, and the best/worst-case outcomes.
Read it →The Estoppel Certificate Explained: A Net-Lease Buyer's Due Diligence Anchor
An estoppel certificate is a tenant-signed statement confirming the real terms of a lease. Here's how it works, why it matters in net-lease due diligence, and how to use it as leverage.
Read it →Loan-to-Value (LTV) Explained: What It Means for Net-Lease Buyers
Loan-to-value (LTV) measures your loan against the property's value. Here is what it means in commercial real estate, how it shapes net-lease and retail deals, and how to use it to your advantage.
Read it →Tenant Improvement Allowance, Explained: What It Really Costs You
A tenant improvement allowance is money a landlord puts toward build-out costs on a new lease: here's how it's actually negotiated, funded, and what it means for your return.
Read it →SNDA Explained: Why This One Agreement Can Make or Break Your Net Lease Deal
An SNDA (subordination, non-disturbance and attornment agreement) protects a tenant's lease if the landlord defaults on the mortgage, and protects a lender's collateral position at the same time, here's how it actually works in a retail net lease deal.
Read it →Renewal Options Explained: What That "Option Period" in Your Lease Really Means
Renewal options give a tenant the right, not the obligation, to extend a lease on pre-set terms, and how they're written can shape a net-lease property's value as much as the rent roll does. Here's how I walk clients through reading them.
Read it →Right of First Refusal (ROFR) in Commercial Real Estate: What It Actually Gets You
A right of first refusal gives you the chance to match a deal before it goes to someone else, it's not a right to buy on your own terms. Here's how ROFRs actually function in net lease retail deals and what to check before you rely on one.
Read it →Debt Yield Explained: The Lending Metric That Really Sets Your Loan Size
Debt yield measures a property's net operating income against the loan amount, and it's become the backstop lenders use to cap leverage no matter what interest rates do. Here's how I explain it to clients before they lock a rate.
Read it →The Rent Roll, Explained: How I Read One Before I Ever Look at a Cap Rate
A rent roll lists every tenant, their rent, and their lease terms, and it's the single best predictor of what a property will actually do for you. Here's how I read one before I trust any number on a flyer.
Read it →Capital Expenditures (CapEx): The Bill That Shows Up After You Close
A plain-English look at capital expenditures (CapEx) in commercial real estate: what counts as CapEx, how it works in net lease retail, and how to price it into a deal before it surprises you.
Read it →Price Per Square Foot Explained: A Net-Lease Buyer's Shorthand
Price per square foot is the quick sanity check I run on every net-lease deal. Here's what it tells you, where it lies, and how to use it without getting burned.
Read it →Break-Even Occupancy Explained: The Line That Keeps a Net-Lease Deal Solvent
Break-even occupancy is the percentage of a property you have to keep leased just to cover operating costs and debt service. Here's how to read it, and why it matters more in retail net lease than most buyers realize.
Read it →Gross Rent Multiplier (GRM): The 30-Second Screen for Net-Lease Deals
The gross rent multiplier divides price by annual gross rent to give you a quick read on a deal. Here's how to use it to screen net-lease properties fast, and why it should never be the last number you check.
Read it →The Operating Expense Ratio in Net Lease: What It Really Tells You
The operating expense ratio measures what share of a property's income gets eaten by operating costs. In net-lease retail, it's a fast tell on lease structure, reimbursements, and where your risk actually sits.
Read it →Replacement Reserves Explained: The Line Item Net-Lease Buyers Skip
Replacement reserves are the cash you set aside for the big, occasional capital costs a property will eventually need. Here's how I think about them on a net-lease deal, and why leaving them out of your numbers quietly inflates your return.
Read it →The Holdover Tenant, Explained: What Holdover Rent Means for Your Net-Lease Deal
A holdover tenant keeps occupying the space after the lease term expires. The holdover rent clause decides whether that's a windfall or a headache, here's how I read it before you buy.
Read it →Rent Commencement vs. Lease Commencement Dates: The Net-Lease Gap That Costs Buyers
Lease commencement and rent commencement are two different dates in a net-lease deal, and the gap between them changes when rent starts and how much lease term you're really buying. Here's how I read them before making an offer.
Read it →Assignment and Subletting Rights in a Commercial Lease, Explained
Assignment and subletting clauses control who can take over a commercial lease and who stays on the hook for the rent. Here's how a net-lease broker reads them, and why they matter more than most buyers think.
Read it →Phase I Environmental Site Assessment: What Net-Lease Buyers Need to Know
A plain-English look at the Phase I Environmental Site Assessment: what it is, why it matters on retail net-lease deals, and how I use it to protect a buyer.
Read it →Title Commitment and Survey Review: The Due Diligence Step That Saves Deals
Title commitment and survey review is where you confirm the seller can deliver clean ownership and the land is what everyone thinks it is. Skip it or skim it, and the surprises show up after you own them.
Read it →Certificate of Occupancy: The One Piece of Paper That Can Stall Your Closing
A certificate of occupancy is the municipal sign-off that a building is legally allowed to be used for its intended purpose. Here's how it plays out in retail net-lease deals and why it belongs on your due-diligence checklist.
Read it →Zoning and Entitlements for Retail Property: What Actually Controls Your Site
Zoning and entitlements decide what a retail property is legally allowed to be. Here's how I read them in a net-lease deal, and why they matter most on the day your tenant moves out.
Read it →Reciprocal Easement Agreement (REA): The Shopping Center Rulebook Behind Your Net Lease
A reciprocal easement agreement (REA) is the private contract that governs shared access, parking, and maintenance across a shopping center. Here's how it shapes the value and risk of a net-lease deal, and what to check before you close.
Read it →Loan Assumption Explained: Buying Commercial Property With the Seller's Existing Debt
A plain-English look at loan assumption in commercial real estate: what it means to take over a seller's existing financing, when it helps you, and where it can quietly cost you. Learn how James Garner, CCIM sizes up an assumable loan.
Read it →The 7.25 cap that was really a countdown timer
A 7.25 cap that everyone loved, until you read the lease: four years of term, a single-store guarantee, and an old roof on the landlord.
Read it →The guarantee that wasn't
A tenant with a name you'd recognize on the sign, and a guarantee that was really just one franchisee's checking account.
Read it →The triple net that wasn't
The listing said triple net. The leases said the landlord quietly eats management, some repairs, and capped recoveries.
Read it →A car drove through the center the day before closing
Everything was done, closing was the next morning, and then a car went through the front of the center. The contract saved it.
Read it →He signed on Thursday
The closing I still think about, and what it taught me about doing the work like it matters.
Read it →