7 Commercial Real Estate Terms You Need to Know

7 Commercial Real Estate Terms You Need to Know

Want to read a CRE deal like a pro? In this Real Estate Rank iQ guide, we break down the seven must-know terms—with simple formulas and quick wins—so you can underwrite faster, negotiate smarter, and avoid costly mistakes.

✅ NOI (Net Operating Income): Income − Operating Expenses (excludes debt service, cap-ex, income taxes).
✅ Cap Rate: NOI ÷ Purchase Price → quick value/return gauge.
✅ DSCR (Debt Service Coverage Ratio): NOI ÷ Annual Debt Service (lenders often want ≥ 1.20–1.30×).
✅ LTV (Loan-to-Value): Loan ÷ Property Value (common 60–75%).
✅ IRR: Time-weighted annual return across hold period & sale.
✅ Cash-on-Cash Return: Annual pre-tax cash flow ÷ Cash invested.
✅ Lease Types (NNN vs Gross): Who pays taxes/insurance/maintenance; verify CAM, TI, escalations.

Perfect for: investors, owners, agents, and lenders leveling up their CRE game.
Brand: Powered by Real Estate Rank iQ — practical frameworks for smarter real estate.

CHAPTERS:
00:00 - Intro
00:54 - Net Operating Income (NOI) Explained
02:12 - Understanding Capitalization Rate (Cap Rate)
03:24 - Cash on Cash Return Analysis
04:12 - Debt Service Coverage Ratio (DSCR) Overview
05:14 - Building Class & Lease Type Insights
06:05 - Your Real Estate Deal Checklist
06:38 - Importance of Relationships in Real Estate



https://realestatenewsiq.com/ 🌐🔍