Too Long; Didn't Read
Commercial real estate investment falls under 3 investment categories it could be core investment, value add and opportunistic. Investors bear some level of risk because the business plan to increase the cash flow might not turn out as expected. IRR tells you how good a property is at producing income and is calculated by dividing the net operating income (NOI) by the total operating expenses incurred on a property from all revenue generated. Net Operating Income is a measure of the income generated by the property over the life time of the deal.