Investor Glossary
Rate-and-Term Refinance in Industrial Real Estate
Rate-and-term refinancing loans have many uses, from assisting borrowers in lowering monthly debt service costs to paying off a loan earlier or later.
Non-Arm’s Length Transactions
A non-arm’s length transaction occurs when a buyer and a seller have an existing relationship. This impacts taxation and valuation.
Usable vs. Rentable Square Footage in Industrial Real Estate
Understanding the difference between these two key square footage metrics is critical to calculating your lease rate correctly.
Industrial Property Operating Expenditures
Operating expenses, or OpEx, are incurred in the day-to-day operations of an industrial asset and are critical to understand as part of a commercial real estate investment strategy.
Joint Ventures in Industrial Property Investing
Learn how joint ventures can impact the success of any industrial property investment and some best practices for organizing yours.
Shadow Space in Industrial Real Estate
There are several different reasons shadow space exists, and understanding this can be key to keep your industrial property's vacancy low.
Ingress and Egress Rights in Industrial Real Estate
Ingress and egress rights give industrial property owners and tenants the legal right to cross a different property to get to theirs.
Understanding Vacancy Costs in Industrial Real Estate
Vacancy is a fact of life for most industrial real estate assets over time. Understanding the costs of unused space is essential in determining your investment strategy.
Build-to-Suit Leases in Industrial Real Estate
In the industrial sector, some properties are built by developers for specific tenants under build-to-suit, or BTS, leases. These agreements enable a business to occupy an industrial (or other commercial) asset that is customized for its specific purposes.
Arm’s Length Transactions in Industrial Real Estate
Understanding what an arm’s length transaction is and isn’t is essential to industrial investment.
Capital Expenditures for Industrial Properties
Also known as CapEx, these expenses are important to understand when making an industrial property investment and setting rates.
Easements in Industrial Real Estate
It is critical to understand how different types of easements can impact industrial real estate investment and what may be required when selling an asset.
How Adaptive Reuse Can Work in Industrial Real Estate
Adaptive reuse is the repurposing of an existing building for a different use than it was initially intended — also known as a building conversion.
Equity Multiple in Industrial Real Estate
An equity multiple compares the income your industrial investment has generated compared to the amount of capital you put in. Use our calculator to find yours.
Effective Gross Income
An industrial property's effective gross income is not just its rent — you must also add in all other revenue, from vending machines to parking fees.
Cash-on-Cash Returns in Industrial Real Estate
A cash-on-cash return is a quick and easy way to determine how profitable an industrial investment can be for you. Use our free calculator.
Holding Companies in Industrial Real Estate
Find out four steps to creating your own LLC for your next industrial property investment.
Why Floor Area Ratios Matter in Industrial Real Estate
The floor area ratio, or FAR, is the figure representing how a building’s size relates to its land.
What’s the Difference Between Dark and White Shells?
A cold, dark shell describes a building that does not have most (or any) interior improvements, while a warm, vanilla shell comes ready for occupancy with minor adjustments.
Furniture, Fixtures, and Equipment in Industrial Real Estate
Because FF&E is part of a business’s value, identifying what falls into this category is essential in calculating the value of your business.
Absorption in Industrial Real Estate
Absorption in industrial real estate is often used as a key metric to assess the health of tenant demand within a market.
Demolishing an Industrial Building
Demolishing an outdated industrial facility can be costly, depending on the size and location of the building or environmental factors.
Greenfield & Brownfield Industrial Developments
While greenfield industrial developments may be far more common and less costly, brownfield options also offer significant investment opportunity.
Triple Net Leases in Industrial Real Estate
Triple net leases are playing an increasingly important role in industrial real estate. Find out the upsides and downsides of this hands-off lease structure.