Questions: Commercial Real Estate
Q: I missed the explanation about how you calculate the debt service constant.
A: The Debt Service Constant is a unique number set by the combination of a) a specific interest rate, b) a specific amortization period, and c) a specific payment frequency.
One finds this number in published tables and financial calculators. In addition, you may request our Excel Debt Service Constant link by sending an email to firstname.lastname@example.org.
Q: With multiple tenants with varying spaces, it seems like the actual breakeven would be difficult to determine.
A: Most Rent Roll forms include the Tenant Name, Unit Size in Square Feet, and Rent per Square Foot.
Given this information, breakeven calculations for vacancy rate and rental rate should be easily calculated on a periodic basis.
Course overview: Commercial Real Estate