Need a quick way to evaluate commercial real estate
and connect with your clients?

A RealLaunch Tool will save you time!

RealLaunch Relaunches IRR Calculator

As a commercial real estate broker and investor, you know the importance that CRE metrics play in any real estate transaction. Being able to calculate these metrics accurately is just as important as knowing what each one means and the importance they play in evaluating any commercial property.

That’s why we’ve recently relaunched our CRE financial analysis calculator to help brokers and investors alike, insure they know they’re numbers. We have to admit, we think our new and improved calculator is pretty awesome!

The IRR Calculator PRO will calculate Property Cap Rates. 10 -Year Cash Flow. Net Operating Income. Total Return before Taxes. And the IRR. A full financial analysis of your commercial real estate property investment.

This calculator was created by commercial real estate brokers, appraisers, investors, developers, and property managers from decades of experience… so it tells the right story. The story of your numbers.

You can purchase your very own Branded IRR Calculator for just $29. Check out for your own calculator today!

The DISC Test and Building a Healthy Team

Dominance, Influence, Steadiness, Conscientiousness or DISC is an assessment used by a number of organizations looking to grasp a better understanding of the behaviors and personalities of any potential employee. We use this very same assessment in our interviewing process here at RealLaunch in order to better understand the strengths, personalities, and placement of each potential candidate.

Read more

Top 5 Apps Every Commercial Broker NEEDS

We understand how overwhelming and tiresome the work life can be and that’s why we here at RealLaunch try our very best to make it a little easier on you by doing all the work.

What we’ve done is reviewed some of the best apps for CRE brokers and came up with our top 5 favorite apps we believe every commercial broker needs, so that you can skip the work in researching the best apps and just download them right away.

1. LogMeIn

It’s happened to all of us, you’re out and about when you realize you’ve forgotten that important file on your office computer across town. Well with LogMeIn, it’s easy to remotely access all of your computer content from anywhere at anytime, with just a simple click on your iPhone or iPad. You’ll never have to worry about forgetting to forward or bring along that important document, with LogMeIn it’ll seem like you’re actually in front of your computer.


2. CompStak

All the data you could ever need or want – right at your fingertips! CompStak provides brokers, appraisers, and researchers with an endless amount of data to insure the most accurate and data driven transactions. Data and facts are important, so ComStak allows you to interact with other brokers and appraisers to insure that all that important data is up-to-date and accurate.


3. DocuSign

DocuSign allows you to sign any important document at anyplace at anytime. Whether you’re away on business or up late at night getting work done, DocuSign allows you to electronically sign and request other’s signatures on all of your documents from any of your electronic devices.


4. GoConnect

GoConnect is your digital checklist, keeping track of all of your completed tasks and all the tasks you have yet to complete. GoConnect allows you to create checklists for each of your current clients and sends you daily reminders so you can stay on track and focused.


5. SwiftKey

“The world’s most intuitive and personalized keyboard software”

SwiftKey adapts to the way you type – predicting the way you type as you type, by progressively improving and learning the personal way in which you engage in conversation. SwiftKey studies your typing habits and even learns to incorporate the unique and important phrases you use in everyday written communication.

Top 4 Books For CRE Brokers

There are countless books, articles, and blogs out there on the world of CRE, but we know you’re busy so we thought we’d make things a little easier on you by giving you our top 4 favorite books on the topic. To help guide you along your career by improving your knowledge and skills on the commercial real estate world.

1 .The Millionaire Real Estate Agent

By Dave Jenks, Gary W. Keller, and Jay Papasan

A step-by-step guide for both beginners and the experienced real estate agent. The Millionaire Real Estate Agent is your go to guide for how to take your real estate skills to the next level. 

This book presents a new paradigm for real estate and should be required reading for real estate professionals everywhere.” – Robert T. Kiyosaki author of Rich Dad, Poor Dad 


2. The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich

By Timothy Ferriss

Your blueprint to a simpler and more fulfilling life all while creating an efficient and successful work life. Timothy Ferriss’ The 4-Hour Workweek includes tips and tricks from professionals and everyday people who have doubled their income, overcame difficulties, and reinvented themselves. This may not specifically be a book for brokers or those in the real estate industry, but it holds true for all professions and walks of life.

3. Brokers Who Dominate: 8 Traits of Top Producers

By Rod Santomassimo

Learn the best tactics from some of the best commercial real estate brokers in the business. Rod Santomassimo’sBrokers Who Dominate: 8 Traits of Top Producers gives you the rundown on how to succeed, whether you’re a newbie or have years of experience, Brokers Who Dominate will reveal new outlooks and tips for brokers in commercial real estate.


4. How to Win Friends & Influence People

By Dale Carnegie

Your guide on how to take any situation and make it better. Dale Carnegie’s How to Win Friends & Influence People is “the only book you need to lead you to success.” Whether you’re trying to improve your personal life or your professional life, How to Win Friends & Influence People will help you along your way.

3 Sites for Brokers Who Want to Grow

With the overwhelming amount of information out there,  it can be difficult to navigate and determine what sources are providing the most accurate and relevant information. So we thought we’d give you the lowdown on which sites we go to to sharpen our own CRE knowledge and skills.

Take a look at these 3 sites if you’re a broker who wants to grow and learn more about the industry:


Not only does CCIM provide in person courses to help sharpen your skills and real estate knowledge, but they also provide a number of online resources too. So that you can continuously grow and improve in your commercial real estate career.


National Association of Realtors

NAR has more information than you could ever ask for!

They not only have the latest news, but provide data, educational tools, and much much more. With up-to-date industry news, NAR is our go to for the most recent and relevant CRE news.


White papers, news, videos, and more; REIS has a plethora of information and resources to refresh your memory or teach you a thing or two about the industry.

The 5 Types of Commercial Real Estate

To help manage the colossal scope of their industry, commercial brokers and investors have split it into five types of commercial real estate. Below, I’ll talk about what these different categories include and what to look for when investing in them.


office types of commercial real estate

Office buildings range in size from the small suburban office parks to the towering skyscrapers in downtown New York City. To help differentiate between them, the category is broken down further into Class A, Class B and Class C buildings.

Class A is the premiere, cream-of-the-crop office building. They usually include high quality designs, a coveted location and above-average rent.

Class B is the average, everyday office building. They compete for a wide range of tenants and have a reasonable rent for the market.

Finally, Class C buildings are beginning to show their wear. They offer functional, if outdated, workspaces at below average rents.

Office real estate is influenced by factors like the local economy and the region’s industry focus – financial and technology companies demand a lot of space. The leasing companies may require special clauses in their contracts like the right to contiguous space.


industrial types of commercial real estate

Industrial buildings are usually located outside of urban areas and along transportation routes. They are separated into four different classes: heavy manufacturing, light assembly, bulk warehouses, and flex industrial (a mix of industrial and office spaces.)

Manufacturing buildings are often outfitted specifically to a single tenant and may require extensive remodeling if a new one moves in. Warehouse are more generic and can be filled fairly quickly should your current tenant move out. Industrial buildings tend to have long leases meaning, over time, rent may fall behind the market.


retail types of commercial real estate

Retail is a huge category that includes buildings like malls, shopping centers, restaurants, big box stores and more.

Before purchasing retail real estate, it’s important to consider its location and the state of the local economy. Both of these will play a big role in the success of your investment. As with industrial buildings, retail spaces generally have long leases that may fall behind current market rent prices, and new tenants may require extensive remodeling to keep with their brand identity.


multifamily types of commercial real estate

Formally considered residential real estate, apartments of all sizes are now considered types of commercial real estate due to growing urbanization.

MultiFamily units are considered one of the safer bets in commercial real estate investment. A single vacancy in large buildings is unlikely to have a heavy effect on income and leases are short enough (1 -2 years) that you can react quickly to changing market prices for rent.

Special Purpose

motel types of commercial real estate

Finally, special purpose buildings are the last of the types of commercial real estate and include everything else not mentioned above. Amusement parks, hospitals, storage units, hotels and more all fall into this category, and each type requires a unique approach.

What Expenses Can a Triple Net (NNN) Lease Cover?

As one of the most preferred lease structures used on the commercial market today, a Triple Net (NNN), or net-net-net, lease is known to ease the financial burden on investors by allocating property ownership expenses to tenants, or lessees.

Triple Net Lease:

sign a commercial lease pen

Investors flock to the Triple Net Lease option for its ability to provide low-risk and long-term returns on often large commercial spaces that are utilized by a small number of tenants. A standard Triple Net Lease requires the tenant to pay base rent plus the cost of covering Common Area Maintenance (CAM), real estate taxes and insurance.

With this lease structure, landlords are off the hook for covering expenses that often result from property ownership. If you apply the concept to a commercial property that’s split between three tenants that generate an estimated $20,000 worth of maintenance per year, or $1,667 per month, cost to each tenant would be $556 to the tenant per month, for example.

Today, property owners have a variety of options to choose from when it comes to developing a leasing structure. A Double Net (NN) Lease, for example, requires the tenant to pay base rent, property taxes and insurance while a Single Net (N) Lease, requires the tenant to pay base rent plus property taxes. Finally, a Gross Net Lease, leaves all variable property expenses to the property owner.

While the Triple Net Lease option is preferable to many, it’s not always easy to identify how the three major components – including maintenance, tax and insurance costs – come together.


When it comes to paying insurance, always know that it’s going to benefit both you and the tenant, so a good policy is worth paying for. Commercial General Liability (CGL) coverage in addition to property and casualty insurance, among other things, are all common expenses that are issued to a tenant in a Triple Net Lease.

If you require tenants to carry insurance, consider who will pay for deductibles and uninsured damage as well. Additionally, while Triple Net Leases allow you to sign off on the cost of insurance, be prepared if a tenant falls through on a payment or chooses not to file a claim.

Property Tax:

triple net lease

Like insurance, identifying who’s responsible for paying property tax is pretty straightforward when composing a Triple Net Lease. With a property tax, realize that the cost of appraisals can go up yearly, resulting in larger tax bills for the tenant. Get involved and contest the appraisal if you see fit – if your tenant chooses to vacate down the road, the tax burden will be left on you.


Finally, when it comes to allocating responsibility for Common Area Maintenance (CAM), know what all can go into the upkeep of a property. Consider the maintenance of lobbies, elevators and garages as well as heating and cooling expenses. Cost of security services, inspection fees, landscaping, broker fees, advertising and more can also be included under this category.
With so many items to choose from, it’s important to do your due diligence as an investor.

The Investment Property Valuation Calculator Tutorial

The Investment Property Valuation Calculator is a commercial investing calculator and an invaluable tool for investors and brokers alike. When used effectively, the IPV Calculator can help you plan ahead with your commercial property investments. An in-depth reading of the results can reveal when the best time to sell would be, areas where building expenses could be trimmed back, and many other insights that will create the best return on your commercial investment.

investment property valuation calculator

This is a basic tutorial that will introduce you to the IPV Calculator and some basic commercial real estate terms.

To begin valuing your investment property, visit

Step 1:

investment property valuation calculator

The IPV Calculator relies on a short, seven step process to supply you with a ten-year plan for your commercial property. To start, answer the question, “What type of investor are you?”

investment property valuation calculator

Are you looking to buy or sell your property?

Next, you’ll specify the Property Type of your building. If you’re unsure, you can learn more about the five general property types here.

investment property valuation calculator

Different commercial real estate property types require different information to give you an accurate reflection of their worth. So it’s important to specify the correct type! The expenses for a multifamily apartment will be very different than those of an office property. As will the type of lease you have established with the tenants.

That’s it for Step 1 of the IPV Calculator! Pretty simple. When you’re ready for Step 2, hit “Go to next step” to continue valuing your property in the commercial investing calculator.

investment property valuation calculator

Step 2:

The second step in the Investment Property Valuation Calculator is all about income! Here, you’ll discover how much Gross Income your property is bringing in. Gross Income is the total amount of money you are making, before deducting taxes and expenses.

It’s important to enter in as much data as you have on income, including individual tenant’s rent. The more information you can provide, the more in-depth analysis you’ll have of your property’s worth.

If you do not have the information readily available, or you have many, many tenants, you have the option to skip individual entries and enter the single lump sum of your building’s income.


Feel free to enter income number you most readily know. If you enter in your total monthly income, the commercial investing calculator will automatically calculate your annual income. This also works in reverse if you enter your annual income first.

Property Income refers to “income received by virtue of owning property.” The three forms of property income are rent—received from the ownership of natural resources; interest—received by virtue of owning financial assets; and profit—received from the ownership of capital equipment.

The Property Square Footage is the amount of space your property takes up. A square foot is defined as the area of a square with sides of 1 foot in length.

investment property valuation calculator

Vacancy Rate can be tricky. The vacancy rate refers to “the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time.” For example, if you have a four unit apartment, and a tenant moves out of one unit, your vacancy rate is 25%.

For the IPV Calculator, we recommend entering in the average property’s vacancy rate in your market. This number can swing drastically in different directions based on your property type and location, so expect to do some research. If you’re unsure, contact a local commercial real estate broker. They will be happy to help you out!

When you’ve entered all the figures you can, hit “Go to next step” to continue valuing your property with the commercial investing calculator.

investment property valuation calculator

Step 3:

investment property valuation calculator

In Step 3, you’ll break down the expenses it takes to run and maintain your property. This will provide you with a better idea of how much each charge is cutting into your profit and where you could potentially save money.

investment property valuation calculator

There are typically two types of leases when dealing with commercial real estate, Gross Lease and Triple Net Lease (NNN). If a Triple Net Lease has been signed, the tenant agrees to take on the full extent of the building’s expenses. They will cover taxes, insurance, maintenance and nearly every billable item.

With a Gross Lease, it is the landlord who is responsible for paying the majority of the building’s expenses. The tenants pay a singular rate throughout the year.

Click here to learn more about the two types of leases.

investment property valuation calculator

As with income, we recommend you fill put as many details as possible into the commercial investing calculator for your building’s expenses. Every expense you input will lead to a more comprehensive view of your property and allow you to more strategically outline your future plans for it.

The Investment Property Valuation Calculator automatically creates fields for some of the most common expenses, but you are free to create delete or create your own depending on your property’s unique needs.

investment property valuation calculator

If you are unsure of your property’s various expenses, there is the option to enter the total lump sum of your building’s cost. This will result in a less detailed, but still functional final report.

investment property valuation calculator

When you’ve entered all the expenses you know, hit “Go to next step” to continue valuing your property with the commercial investing calculator.
investment property valuation calculator


Step 4:

investment property valuation calculator commercial investing calculator

In Step 4 of the IPV Calculator, you’ll focus on valuing your commercial real estate property. You’ll advance from this step with a better understanding of what your building is worth and an estimation of its Cap Rate.

investment property valuation calculator

Before you begin, it’s useful to understand a couple terms. First Net Operating Income (or NOI) is a calculation used to determine the profitability of a property. NOI is determined by adding all revenue generated from the property (rent, parking, etc) minus all reasonably necessary operating expenses (insurance, repairs, etc.)

investment property valuation calculator

A Capitalization (Cap) Rate is a little more complicated to figure out. A cap rate is the rate of return anticipated for one year if the property was paid for in cash — it’s the ratio between the NOI and the property value. It is determined by evaluating the financial data of similar properties which have recently sold in a specific market. The cap rate calculation incorporates a property’s selling price, gross rents, non rental income, vacancy amount and operating expenses.

Generally, buyers are interested in properties with a higher cap rate, while sellers want their cap rate to be low. You can use the slider at the bottom of the page to see how the cap rate affects the value of your property. As the cap rate goes up, your property’s value goes down.

If you’d like to learn more about cap rates, read out article for a more comprehensive explanation. Alternatively, use MyNOI’s Local Cap Rate tool to get an idea of what the cap rates may be in your area.

When you’ve entered all the values you can, hit “Go to next step” to continue valuing your property in the commercial investing calculator.

investment property valuation calculator


Step 5:

investmenr property valuation calculator commercial investing calculator

In Step 5 of the IPV Calculator, we’ll perform a financial analysis and take a look at the debt you’ll be incurring by investing in a commercial property.

investmenr property valuation calculator

The first information you’ll be asked for is the down payment and loan amount.

The down payment is the amount of money a buyer needs to pay up front before they can sign the building contract. Most property owners expect some form of down payment as a way to prove buyers have the capital to afford making monthly mortgage payments. The loan amount is simply how much money you’ll be borrowing to purchase the property.

After the down payment and loan amount, you’ll fill in information on Interest Rate, Amortization Period, and Monthly Payment.

The interest rate is the percent charged for borrowing assets. If the bank loaned you money, they make a profit from it by charging you an interest rate based on the total still owed.

An amortization period is the amount of time it will take you pay off the debt with fixed monthly installments. The calculator will then crunch your expected monthly payments based off the total loan and how long you will be paying it off. The finished Investment Property Valuation Calculator report will detail how much you will have left to pay off every month.

The final slots for Step 5, Annual Debt Service and Debt Coverage Ratio (DCR), are automatically calculated for you if all the above information has been filled out.

investmenr property valuation calculator

Your annual debt service is simply how much money you will need to generate yearly to cover both your repayment loans and the interest on top of them. The debt coverage ratio is determined by dividing the NOI by the debt service. Or to put it simply, how much you’ll be making by how much you’ll owe. Typically, a bank with require a DCR of 1%> before loaning you any money, as that signifies your property will generate a positive cash flow.

When you’ve entered all the values you can, hit “Go to next step” to continue valuing your property in the commercial investing calculator.

investment property valuation calculator

Step 6:

How to Use the Investment Property Valuation Calculator commercial investing calculator

In the sixth step, investors will examine the cash flow of their property. It’s a short step that asks buyers to enter or estimate the average percentage growth of their income and expenses in order to help you better understand the long-term health of your property.

How to Use the Investment Property Valuation Calculator

Step 6 is the final section before your ten-year report is calculated by the commercial investing calculator. In this phase, we’ll focus on the estimated annual growth of your income and expenses.

investment property valuation calculator

As time goes on, it’s likely the income and expenses your building generates will grow. To ensure you receive an accurate ten-year forecast, it’s necessary to know how much each will be growing by. Enter the best estimation of growth you have into the proper boxes. If you’re unsure of what the rate may look like, contact a local broker and ask for the numbers on similar properties in the same sector and area.

The Cap Rate at Sale box will automatically populate itself based on the information you’ve given in previous sections. If you need a reminder of what cap rate is, read our article.

When you’ve entered all the values you can, hit “Go to next step” to see your ten-year property forecast report.


investment property valuation calculator

Step 7:

Investment Property Valuation Calculator commercial investing calculator

The final step of the IPV Calculator is a summation of everything you’ve entered before. Investors can see a ten-year forecast of their commercial property, along with information on their loans. This handy report can act as a loose guide on investments and provide you with a direction concerning where to put your money.

Investment Property Valuation Calculator

You’re familiar with many of these terms already from previous steps, but we’ll detail some of the new ones you may not recognize.

The Net Cash Flow is the money that remains after expenses and loan repayments have been taken out of your revenue.

Cash on Cash Return is a common way in the real estate industry of looking at your returns. It is calculated by dividing your cash flow by the amount of your total investment.

Principal Reduction is the amount of money you will have paid off that year toward your loan. With Cumulative Principal Reduction showing you the total sum of your payments so far.

The final report also lists how your loan payments will play out over the entire amortization period. Each month is detailed with how much you will be paying, the interest you’re paying on it, and the cumulative payments made so far.

Investment Property Valuation Calculator

To receive a PDF of the final report, click the “Email Me Results” and enter your email address.

From this final step, you can go back and edit any of the previous numbers you put in to see how they may affect the outcome of your property. Try lowering the interest rate to see how much .2% could save you over 30 years. Or experiment with rent prices to find the happiest medium between satisfied tenants and sufficient cash flow.

Thank you for your interest in the IPV Calculator. We hope you find it useful for all your commercial real estate needs!

To learn more about the team behind the commercial investing calculator, visit

Download the commercial investing calculator tutorial.

What Influences Current Cap Rates?

Previously, myNOI covered how cap rates were calculated. Now, we’ll describe the other factors that go into determining current cap rates. 

At their simplest, cap rates are just the annual net operating income divided by the cost paid for the property. However, much more influences current cap rates than those two sums! Investors use cap rates to compare similar investment opportunities in the market by associating the risk of each with a number. Because each market is different, the best cap rate analysis looks at a number of different factors:


current cap rates traffic

The location of a commercial property influences current cap rates. Demand drives prices, and the nearer a property is to areas with lots of traffic, the higher the price. Demographics like major industries, employment rates and median household income all affect the risk associated with investing in a property.

If the area is experiencing a boom in the finance sector, then low cap rate’s for office buildings are likely to reflect a safer bet. Contrast this with a shrinking market, where high cap rates will likely show a much riskier investment for office space.

Asset Types:

It’s not just the location that influences current cap rates, it’s also the asset type of the property you’re looking for! Multifamily units are usually considered safer investments than retail properties, and so they tend to have lower cap rates. Everyone needs a place to lay their head at night, even during a recession. A retail building, however, is much riskier because of its reliance on a strong economy to remain sustainable. You can expect to see that difference reflected in the current cap rates for the different asset types.

Interest Rates:

Finally, the interest rates offered by financial institutions impact current cap rates. High interest rates mean it will likely take longer to pay back the loans you took out for the property, leading to higher risk. You may have changed nothing about your property, but if the federal government raises interest rates by 1%, you’ve suddenly got a building worth less, because of the extra money required to pay it all back.


Cap rates are highly variable depending on the market, and oftentimes require you to connect with a certified local broker for an in-depth analysis. However, myNOI’s investment calculator can give you an idea of your property’s cap rate. Use our local cap rates tool to also get a bird’s eye view on your area’s current cap rates.