Introduction Net Operating Income (NOI) is the linchpin of commercial real estate finance – it measures a property's profitability and directly influences its value and financing potential. In simple terms, NOI equals a property’s income from operations minus its operating expenses. While the formula is straightforward, building a defensible NOI  means ensuring that this number is unassailable under scrutiny. Lenders, investors, and appraisers rely on NOI for underwriting loa

Introduction Underwriting professionals at U.S. lending institutions must keenly understand the difference between market rent  and contract rent , especially when evaluating income properties. A property’s rental income may include leases that are either above  or below  prevailing market rates, which can distort the true risk and value profile. Lenders need to "normalize" these leases – in other words, adjust or account for them – to ensure underwriting reflects sustainable

Introduction Valuing commercial real estate (CRE) is a cornerstone of prudent lending and feasibility analysis. In the United States, appraisals must adhere to the Uniform Standards of Professional Appraisal Practice (USPAP)  and regulatory requirements (e.g. Dodd-Frank Act provisions) to ensure credibility and independence. USPAP recognizes three primary approaches to value – the Cost Approach , Sales Comparison Approach , and Income Capitalization Approach  – and requires a

Introduction In commercial real estate, two common valuation tools – Direct Capitalization  and Discounted Cash Flow (DCF)  – often arrive at different price estimates for the same asset. Why do these methods sometimes diverge, and which factors change the answer most ? To explore this, imagine valuing a stabilized U.S. office building. A lender might quickly capitalize its current net operating income (NOI) for a direct cap  value, while an equity investor might build a mult

Introduction In commercial real estate, every property carries untapped potential that savvy developers and lenders strive to unlock. The principle of Highest & Best Use (HBU)  serves as a guiding light in this pursuit – it demands that a property be put to its most value-maximizing use  given all practical constraints. While location is paramount, failing to match a site with its optimal use can leave significant value “on the table” . HBU analysis provides a strategic frame

Overview of Shutdown Effects on Federal Lending In a shutdown, federal agencies face a lapse in appropriations  – no funding to operate. Under the Antideficiency Act, agencies are prohibited from incurring new obligations in the absence of enacted funds, except for very limited circumstances (such as emergencies involving safety of human life or protection of property). As a result, program activities that are not deemed “excepted” must cease until funding is restored. Each a

Introduction and Latest Developments A simmering trade dispute over tariffs on pasta is boiling over between the United States and...

Extended stay hotels have emerged as a standout segment  in the U.S. hospitality real estate market, offering a blend of resilience and robust cash flows that has attracted deep investor interest. Even as overall lodging occupancy remains slightly below pre-pandemic highs, extended stay properties have been outperforming: in late 2024 they averaged over 70% occupancy, versus about 60% for traditional hotels . This high utilization, coupled with lean operations, translated int

Introduction Senior housing (including assisted living and other care levels) is a complex, capital-intensive, and highly regulated...

Modern U.S. nursing home facility with two-story design and landscaped surroundings, reflecting contemporary senior living architecture....

Modern U.S. car rental facility with parked vehicles. 1. Executive Summary The U.S. car rental industry has rebounded strongly from the...

Introduction:  The U.S. bars and nightclubs industry has rebounded from pandemic-era disruptions and is now a $39 billion  market, albeit one with thin margins and high volatility. As consumers return to social nightlife and spending out-of-home, investors and developers are reexamining opportunities in this fragmented sector. Private equity interest is on the rise, targeting scalable concepts and roll-up strategies. This briefing provides an analytical overview of industry f

2025 Industry Performance Overview The U.S. apartment and condominium construction industry has experienced mixed performance in 2025 amid shifting economic conditions. After strong growth during the pandemic-era housing boom (fueled by low interest rates), rising interest rates in 2022–2023 caused a noticeable slowdown in multifamily construction. Many contractors delayed or canceled projects as the Federal Reserve’s rate hikes drove up financing costs and mortgage rates, wh

Introduction The U.S. industrial property sector enters 2025 at a pivotal moment. Over the past several years, an e-commerce boom  fueled...

Power Plant Rapid growth in AI computing is driving unprecedented demand for hyperscale data center capacity, but this boom comes with...

Automation and robotics are reshaping U.S. manufacturing, boosting precision and efficiency across electronics, automotive, and food...

Worker navigating the brewery floor with equipment among stainless steel fermentation tanks. Introduction The US Beer Market Report and...

The Line  is an audacious urban development in northwest Saudi Arabia that aims to redefine city living. Unlike traditional cities that...

Fields adapted to soybeans cultivation The United States soybean farming industry sits at the nexus of global trade tensions and domestic...

San Francisco’s retail real estate market is showing early signs of stabilization in the third quarter of 2025 after several turbulent years. Key indicators suggest that the broader