Commercial Real Estate Fundamentals

Commercial real estate for brokers and advanced agents. Property types, commercial lease structures, investment underwriting, and transaction procedures.

10 Units

20 minutes per unit

Curriculum Map

What You Will Learn

Commercial Leases

NNN, gross, modified gross, and percentage leases — structure, negotiation, and common pitfalls.

Investment Underwriting

Commercial cap rates, pro formas, and the due diligence process for commercial acquisitions.

Transaction Procedures

From LOI through closing — timelines, contingencies, and documentation unique to commercial deals.

All Units

20 minutes

Commercial Property Types and Classifications

Explore office, retail, industrial, and multifamily property types, including classification systems, tenant characteristics, location analysis, and investment considerations.

•Distinguish characteristics, investment metrics, and tenant profiles across property types
•Classify properties by quality (Class A/B/C) and apply appropriate valuation approaches
•Evaluate location factors and market dynamics affecting each property type

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20 minutes

Commercial Lease Structures and Terms

Master commercial lease structures, essential provisions, rent calculations, expense allocations, and negotiation strategies for office, retail, and industrial leases.

•Distinguish between gross, net, modified gross, and triple-net lease structures
•Draft and negotiate key commercial lease provisions including rent, term, and options
•Calculate and apply operating expense escalations and CAM reconciliations

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20 minutes

Tenant & Landlord Representation

This unit examines the distinct roles of tenant representatives and landlord representatives in commercial real estate, focusing on fiduciary duties, negotiation strategies, and ethical considerations in lease transactions.

•Distinguish between tenant representation and landlord representation duties
•Identify key negotiation points in commercial lease agreements
•Apply conflict of interest rules in dual agency scenarios

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20 minutes

Commercial Investment Underwriting

This unit covers the financial analysis methods used to evaluate commercial real estate investments, including income analysis, valuation techniques, and risk assessment strategies employed by institutional and private investors.

•Calculate key investment metrics including cap rate, cash-on-cash return, and IRR
•Analyze pro forma operating statements for commercial properties
•Evaluate risk factors affecting commercial property valuations

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20 minutes

Due Diligence: Environmental, Structural & Zoning

This unit examines the critical due diligence processes for commercial real estate transactions, focusing on environmental assessments, physical property condition evaluation, and zoning compliance verification necessary to protect buyers from unforeseen liabilities.

•Identify environmental contamination risks and Phase I/II assessment requirements
•Evaluate structural and systems conditions through property inspections
•Analyze zoning compliance and land use restrictions affecting property value

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20 minutes

Commercial Transaction Procedures & Timelines

This unit examines the procedural framework and timeline for commercial real estate transactions, detailing the progression from initial negotiations through closing and the coordination required among multiple parties to complete complex transactions.

•Outline the sequential stages of commercial real estate transactions from LOI through closing
•Identify critical timeline milestones and contingency periods
•Evaluate closing document requirements and settlement procedures

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20 minutes

Financing Commercial Properties

This unit examines commercial real estate financing structures, underwriting standards, and loan types, providing brokers with essential knowledge to advise clients on financing options and facilitate transaction closings.

•Distinguish between recourse and non-recourse commercial financing structures
•Calculate debt service coverage ratio and loan-to-value requirements
•Evaluate commercial loan types including permanent, bridge, and construction financing

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20 minutes

Build-to-Suit, Ground Lease & Sale-Leaseback

This unit examines specialized commercial real estate transaction structures including build-to-suit developments, ground leases, and sale-leaseback arrangements, focusing on the unique legal, financial, and risk allocation considerations that distinguish these transactions from conventional purchases and leases.

•Analyze build-to-suit lease structures and developer/tenant obligations
•Evaluate ground lease economics and subordination issues
•Assess sale-leaseback transactions and their financial benefits

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20 minutes

ADA Compliance in Commercial Properties

This unit examines Americans with Disabilities Act compliance requirements for commercial properties, focusing on accessibility standards, barrier removal obligations, and strategies for managing ADA compliance and liability in real estate transactions.

•Identify ADA Title III requirements for commercial properties
•Evaluate barrier removal obligations for existing facilities
•Distinguish between new construction and alteration standards

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20 minutes

Commercial Property Management & Tenant Relations

This unit examines commercial property management practices focusing on financial operations, maintenance coordination, lease administration, and tenant relationship strategies that maximize property value and minimize operational risks.

•Evaluate property management functions including financial reporting and maintenance coordination
•Analyze lease administration requirements and tenant communication strategies
•Identify best practices for tenant retention and lease renewal negotiations

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