CRE WORD OF THE WEEK

Good morning, Here’s another Word of the Week Wednesday! Let’s look at income approach. Income approach is a type of appraisal method that allows investors to estimate the value of a property based on the income the property generates. One method is calculated by dividing the net operating income by the capitalization rate.

It’s Word of the Week Wednesday again! Let’s introduce the phrase common area maintenance, or CAM. CAM refers to additional expenses paid by tenants meant to cover costs of daily operations of the property. The percentage of this fee is calculated by dividing tenant’s square footage by total square footage of the building.

Good morning, welcome back to Word of the Week Wednesday! Let’s talk about covenant. A covenant is a written agreement or restriction inserted into deeds or other legal contract documents stipulating certain activities will or will not be allowed on the property.