Return
Is the property a good investment?
Evaluate cash yield, downside coverage, refinancing exposure and exit assumptions.
Review the decision frameworkBuy a commercial property
Test the investment beyond the cap rate.
A commercial property decision should connect NOI quality, debt terms, reserves, capital spending, downside risk and the owner's after-tax cash outcome.
Start with the decision—not the marketing package.
Income
Can the NOI be trusted?
Test vacancy, recoveries, expenses, deferred repairs and seller adjustments.
Examine NOI qualityRisk
What happens when conditions change?
Stress interest rates, vacancy, repairs, refinancing and ownership concentration.
Take the investment stress testCap rate is one input. Cash flow is the investment.
Financing, amortization, leasing costs, reserves, taxes and exit costs can change the result even when the headline cap rate looks attractive.
Read why cap rate is not cash flowUnderwrite four layers
| Property operations | NOI |
| Financing | Debt service |
| Capital and tax | Owner cash |
| Downside and exit | Total return |