Commercial

Vacancy Rates - Vacancy shows the current number of un-rented units.

How do you calculate the vacancy rate?

This is typically calculated on an annual basis and is shown as a percentage.
You simply:
Multiply the number of vacant units by 100.
Divide the result by the total number of units in the property.

For example, if an apartment with 10 units has two vacant units, you would multiply 2 x 100, giving you 200. Then divide by 10 units for a 20% vacancy rate.

Why are vacancy rates important?

Vacancy rates are ultimately aimed to be kept as low as possible, but they will always happen and need to be accounted for. A sound investor can not rely on a tenant to pay on time and to stay in and maintain the premises in a satisfactory manner.

NOI = Gross Revenue – Total Operating Expenses 

The NOI, or Net Operating Income, is one metric used to evaluate an income-producing asset. It is defined as the total income that a property generates less than the total operating expenses and losses from vacant units. 

Prior to investing too much time, energy, and money into acquiring a property, it is crucial for investors to have a clear understanding of the amount of revenue an asset can generate. Many people confuse NOI with the amount of money the property is generating before they take expenses into consideration. When looking at financials on a property and all expenses are not being deducted, the numbers become falsely inflated and are essentially meaningless. How much does it actually

| What is a Cap Rate? | 

A metric used to gauge the approximate risk and rate of return on an income-producing asset, assuming the investor paid cash.  A cap rate is expressed as a percentage and derived by dividing the Net Operating Income (NOI) by the sales price or current market value.

Formula: Capitalization Rate = Net Operating Income / Current Market Value

Example:

Net Operating Income: $150,000

Current Market Value: $2,000,000 

Net Operating Income ($150,000) / Sales Price ($2,000,000) = 7.5% Cap Rate

In short, this means that you would have an approximate return of 7.5% if you paid cash for the property.

You may ask, is this an effective way to value a property? 

There are a handful of variables that are

17 HANCOX ST – STONINGTON, CT

Located within the Stonington Borough, this 15-unit apartment building boasts of long-term full occupancy attributed to its shoreline village atmosphere with direct proximity to local shops, restaurants, and recreational attractions within walking distance. 

The property was placed under contract after being on the market for less than a week. With multiple offers submitted, a full price bid was secured and fortified with backup offers as well as further inquiries accrued over the span of the contract period until the date of closing.

Demand for multi-family properties (4 units or more), appears to have spiked over time, fueling speculation that this very demand could be linked to the affordability of home prices

A Boater’s Sanctuary

As a lifelong resident of the Connecticut Shoreline, it comes with great pleasure to shine light on a hidden gem within our local community.  Growing up in and around the boating & fishing world, I have always been drawn to marinas and all that comes with that space.   The distinct sights, sounds and smells are truly part of the lifestyle that is enjoyed by many, including myself. As a commercial real estate professional, it comes as no surprise that a large area of focus and specialization in my business is the acquisition and disposition of marina properties.  With that in mind, I’d like to share with you Riverside Basin Marina located at 41-49 Riverside Drive in Clinton, Connecticut.

Riverside Basin Marina (RBM) is a 9.7