Editorial
Practical valuation and occupancy-cost resources for owners, buyers, and tenant-rep readers. These notes sit next to evergreen hubs. They are not a substitute for them.
Free rent abates base rent in stated months, but CAM and other recoveries often still bill. Model abatement timing, TI, and recoveries on one occupancy-cost timeline before you trust net effective rent.
· 13 min read
[ Free Rent ] [ Concessions ] [ Occupancy Costs ]
Read articleAn expense stop caps tenant recoveries at a stated level; a base year bills tenant share of operating expenses above a documented baseline year. Both change occupancy cost while face rent stays flat.
· 12 min read
[ Expense Stop ] [ Base Year ] [ CAM ]
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Gross leases bundle operating costs into the rent quote; net leases separate base rent from CAM, tax, and insurance recoveries. Compare occupancy cost, not headline rent alone.
· 14 min read
[ Gross Lease ] [ Net Lease ] [ Occupancy Costs ]
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Treat first-year CAM as a labeled occupancy-cost estimate, not a finished bill. Compare it on the same timeline as rent.
· 14 min read
[ CAM ] [ Occupancy Costs ] [ Commercial Leases ]
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Put both occupancy-cost paths on the same years, discount them, and keep tenant NPV separate from a building cap rate.
· 11 min
[ Leasing ] [ NPV ] [ Comparison ]
Read articleA checklist of rent, recoveries, free rent, TI, and term. Missing one line is how a cheaper face rent still loses.
· 11 min
[ Leasing ] [ Checklist ] [ Occupancy Costs ]
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Rent is one line. Occupancy cost is rent plus the recoverable and tenant-paid operating lines on the same timeline.
· 11 min
[ Occupancy Costs ] [ Rent ] [ CAM ]
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Cap rate is NOI divided by value or price. Name the NOI, name the price, and do not treat a tenant occupancy-cost number as a property yield.
· 11 min
[ Cap Rates ] [ Valuation ] [ NOI ]
Read articleFinancing costs change the yield buyers require. Same NOI at a higher cap rate is a lower indicated value. This is a property-valuation story, not a tenant lease NPV.
· 16 min read
[ Interest Rates ] [ Cap Rates ] [ Commercial Real Estate ]
Read articleTreat first-year CAM as a labeled occupancy-cost estimate, not a finished bill. Compare it on the same timeline as rent.
Read articleFinancing costs change the yield buyers require. Same NOI at a higher cap rate is a lower indicated value. This is a property-valuation story, not a tenant lease NPV.
Cap rate is NOI divided by value or price. Name the NOI, name the price, and do not treat a tenant occupancy-cost number as a property yield.
Rent is one line. Occupancy cost is rent plus the recoverable and tenant-paid operating lines on the same timeline.