good one or not. It refers to how much income your company makes and how the property will affect that after you pay every fee associated with the building you own. There is no standard for a good or acceptable NOI. Investors use it to compare and see if their rental rate is pulling in enough money. Obviously, that doesn’t apply to a company. However, use the NOI to make early choices and find out what buildings and loans you can afford. Your lender will use this to an extent as well. They may play with the numbers in an attempt to get a lower NOI. This is because they want to minimize their risk and take any potential changes in your NOI into account. This is even truer if you plan on renting out a portion of your space. The lender will usually put the lowest rates possible according to the current market, to lower their risk. This is another reason why using a lender that your broker brings you can make a huge difference.
TURN-KEY OFFICE
This simply means that the office is ready to move into at that very moment. There is no need for any buildouts and the square footage is ready for a tenant who is in need of the size specifications. These are very beneficial to companies who are in a pinch and need space quickly. There is no office furniture ready, but the buildout is 100% ready so a company can move their desks and office goods inside. There are benefits and drawbacks to this type of property. The benefits are time-related while the drawbacks take away the customizable aspect of the space.
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