You Can’t Fight City Hall – Especially in Edmonton

Steve1 leases a 300,000 square foot distribution facility in Northwest Edmonton.  The building consists of predominantly warehouse space, but it also includes an office area.  At one point, the office area was full with tech support, sales people and administration staff.  Unfortunately, recent company layoffs had reduced the amount of office the company required.  To[…]

Internal Rates of Return for Commercial Real Estate

Building on our article from last week, we’re going to focus this week on a commonly used term in finance called the Internal Rate of Return (IRR). Before we get into IRR, we first need to give a quick refresher on capitalization (cap) rates. The formula can be expressed graphically as follows: Where: I =[…]