AZ Advisory – Commercial Real Estate Investment Advisory by Alex Zylberglait » Commercial Real Estate Investments: How to Analyze Property Income

Commercial Real Estate Investments: How to Analyze Property Income – 5

By AZ Advisory Team, February 2, 2010 12:41 pm

The Commercial Real Estate Stack:

GPI
- V/C
= EGI
- OE
= NOI
- ADS
=CFBT

-T

=NI

NI1+NI2+NI3…..

- IC

= ROI

So here it is. There are other factors to be added to the equation as we try to evaluate what will help add value to the building and increase its revenue-producing potential in terms of upgrading to various energy, environmental and accessibility building standards as well as improving amenities.

Each element influences the equation and even a slight upgrade or an application of expertise will factor in to a decreased, for example, Operating Expenses, or decreased Taxes – contributing to a significant ROI.

This concludes this topic. Feel free to contact me for other commercial real estate investment topics you are interested in.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.