As much as commercial real estate is a game of numbers, data, and analysis, the human component plays a huge role in what deals are made and how they get done. Chris Volk, President and CEO of STORE Capital invites readers to recognize cognitive tendencies that will affect decision-making when pursuing a retail tenant.
In his most recent Seeking Alpha article entitled, “Real Estate Moneyball,” STORE Capital CEO Chris Volk shares the game plan for a winning commercial real estate investing strategy. By overcoming cognitive biases influenced by common perception he reveals how to evaluate the real embedded financial performance of a property.
In his debut for Seeking Alpha, STORE Capital CEO Chris Volk dissects the success of net lease business models in an article entitled, “A Treasure Hunt for Absolute Return Potential: Real Estate Net Lease Business Models That Deliver.” The article delves into how net lease companies have outperformed for years and provide long-term absolute return delivery through a variety of economic and valuation climates.
Investment risk does not center on how likely a tenant is to default within 12 to 18 months, which is the general time frame of a corporate credit rating. The concern is how likely the lease contract is to perform over its entire life, which may be 10 years or longer. This article discusses how such an evaluation must look at the cumulative multi-year default risk, as well as the credit migration risk.
The vast majority of companies that rely on real estate to run their operations generally lean towards leasing, rather than owning, their real estate. There are many reasons, but the cost of capital and corporate flexibility are high on the list. Discover how a variety of variables, not just a tenant’s credit rating, affect leasing.
For most real estate-intensive restaurant companies, single tenant operational real estate is preferred to ownership. Leasing can lower their cost of capital, create greater shareholder wealth and enhance corporate flexibility relative to other financing options.
Leases and loans can impose material costs on your business through restrictions they impose on your company. This article offers real estate lease solutions for understanding these opportunity costs and transforming them into opportunity value, which can materially impact your shareholder wealth.
In my more than 30 years in the commercial finance industry, I’ve extended an array of short- and long-term corporate debt, real estate mortgages, and real estate lease solutions. As a finance professional, I get many questions about my industry, and two areas that potential clients want to know about.