Commercial property

In urban locations, a commercial building may combine functions, such as offices on levels 2–10, with retail on floor 1.

The ability to analyze these elements is key in providing services to investors in commercial real estate.

Cash inflows and outflows are the money that is put into, or received from, the property including the original purchase cost and sale revenue over the entire life of the investment.

[4] The relative strength of the market is measured by the US Commercial Real Estate Index which is composed of eight economic drivers and is calculated weekly.

Additionally, the economic conditions surrounding future interest rate hikes; which could put renewed pressure on valuations, complicate loan refinancing, and impede debt servicing could cause major dislocation in commercial real estate markets.

However, the contribution to Europe's economy in 2012 can be estimated at €285 billion according to EPRA and INREV, not to mention social benefits of an efficient real estate sector.

A PSA may be a highly negotiated document with customized terms or may be a standardized contract similar to those used in residential transactions.

Common due diligence items include property financial statements, rent rolls, vendor contracts, zoning and legal uses, physical and environmental condition, traffic patterns and other relevant information to the buyer's purchase decision specified in the PSA.

When a deal closes, post-closing processes may begin, including notifying tenants of an ownership change, transferring vendor relationships, and handing over relevant information to the asset management team.