C Land Mini Seminar
TRNASACTION SERIES
Commercial Properties: Sale & Lease
Wednesday 9/17/2025 – Presented by: Stephen Lee
1)Commercial Property Types
– Retails : Stripmall
– Offices
– Warehouses
– Hotels/Hospitals/Church/School
– Residential(Rental) complex (Multifamily)
– Mixed Use (Commercial units + Residential units)
2) Purposes
– Investment
– Owner user
3)NOI ( Net Operating Income) : 얼마나 남아?
( A Commercial building = a Business)
NOI = Total Income – Total Expenses
Income: Rent, Ad income, Vending machine income, etc.
Expenses: Property Tax, Insurance, Maintenance Fee,
Common Utilities, etc.
* Rent -> Based on Rentable space, not Useable space
( Rental space > Useable space)
* Add-on Factor : Total building space : 20,000 sf
Common area space: 2000 sf
Add-on Factor=2000/18000=11.1%
4) Valuation (Price) : 얼마에 팔지?
– Capitalization Ratio (Cap Ratio)
Cap Ratio = NOI / Price
*Price = NOI / Cap Ratio
NOI = Price x Cap Ratio
Ex) Building Price: $1,000,000. NOI:$60,000. Cap Ratio?
5) Lease & Rent
Lease: Agreement/Contract
Rent: Consideration ($ Amount)
Lease Types: 1.Gross lease ( All included)
2.Net lease (Triple Net ; NNN)
– Tax, Insurance, CAM charge
3.Modified lease
Commercial Rent Unit : $/sf/annual
Ex) 2385 Satellite Blvd, Duluth à Rent: $20/sf(gross)
Space: 3060 sf. What is monthly rent?
