Your Trusted Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Your Trusted Katy / Fulshear & Houston Commercial Real Estate Brokerage

Viking Enterprise LLC is part of eXp Commercial, an agent-led, cloud-based commercial real estate brokerage with agents across the globe.

Looking to invest, buy, sell or lease? We can help.

Looking to invest, buy, sell or lease? We can help.

OUR FEATURED TENANTS & CLIENTS

eXp Commercial - Viking Enterprise Team's real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the Katy- Houston area. Our knowledge, experience, and reputation sets us apart from many firms.


A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

Reviews

šŸ’¹ Top Financial Metrics to Master in Commercial Real Estate šŸ¢

šŸ“Š Essential Metrics Every CRE Investor Should Track šŸ’¼

October 17, 2025•2 min read

šŸ“Š Essential Metrics Every CRE Investor Should Track šŸ’¼

šŸ’¹ Top Financial Metrics to Master in Commercial Real Estate šŸ¢


Key Metrics Every CRE Investor Must Know šŸ“Š

When it comes to commercial real estate investing, numbers tell the story. Whether you’re buying, selling, or refinancing, understanding the key performance indicators (KPIs) behind your asset’s value can make or break your deal.

Here are the most important metrics every savvy investor must master:


1ļøāƒ£ Net Operating Income (NOI)

Definition: Income after all operating expenses—but before debt service and taxes.
Why it matters: NOI determines a property’s profitability and is the foundation for calculating cap rates and value.


2ļøāƒ£ Capitalization Rate (Cap Rate)

Definition: The ratio of NOI to the property’s purchase price.
Formula: Cap Rate = NOI / Purchase Price
Investor Tip: Use cap rates to compare similar properties in a market. A lower cap often signals higher demand or perceived stability.


3ļøāƒ£ Cash-on-Cash Return

Definition: Measures the annual return on the cash you’ve actually invested.
Formula: Annual Pre-Tax Cash Flow / Total Cash Invested
Pro Insight: This is the go-to metric for investors using leverage—it shows what your money is really earning.


4ļøāƒ£ Internal Rate of Return (IRR)

Definition: The projected annualized return over the holding period.
Why it matters: IRR accounts for time value of money—critical for comparing long-term investments.


5ļøāƒ£ Debt Service Coverage Ratio (DSCR)

Definition: NOI / Annual Debt Service
Investor Tip: Lenders typically want a DSCR of 1.25x or higher. It shows the property generates enough cash flow to cover debt payments comfortably.


6ļøāƒ£ Loan-to-Value Ratio (LTV)

Definition: The loan amount divided by the property’s appraised value.
Why it matters: LTV determines leverage and impacts your borrowing terms—lower LTVs generally get better rates.


7ļøāƒ£ Vacancy Rate & Occupancy Rate

Definition: The percentage of rentable space unoccupied or occupied.
Insight: Investors use this to gauge market demand and property performance. High vacancy often means an overbuilt market.


8ļøāƒ£ Expense Ratio

Definition: Operating expenses divided by effective gross income.
Pro Tip: Efficient operations generally have an expense ratio below 40%, depending on property type.


9ļøāƒ£ Break-Even Ratio

Definition: Operating Expenses + Debt Service / Gross Operating Income
Why it matters: This shows how much vacancy the property can handle before it starts losing money.


šŸ”Ÿ Rent Growth Rate

Definition: The percentage increase in rental income year-over-year.
Why it matters: Consistent rent growth signals a healthy market and boosts long-term returns.


Final Takeaway

Commercial real estate is a numbers game—those who understand the math win. By tracking these ten key metrics, investors can identify value, manage risk, and make data-driven decisions that maximize returns.


https://www.houstonrealestatebrokerage.com/

https://www.houstonrealestatebrokerage.com/houston-cre-navigator

https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

https://app.bullpenre.com/profile/1742476177701x437444415125976000

https://author.billrapponline.com/

https://www.amazon.com/dp/B0F32Z5BH2

https://veed.cello.so/FOmzTty6oi9


Ā© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team


commercial real estate metricsNOI vs Cap Ratekey CRE investor KPIscash on cash returnDSCR ratio explainedinternal rate of return IRRloan to value LTVcap rate analysisproperty investment performancecommercial real estate investing 2025
blog author image

Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

Back to Blog

eXp Commercial - Viking Enterprise team real estate network provides unparalleled commercial real estate services to Tenants and Landlords around the greater Katy & Houston MSA area. Our knowledge, experience, and reputation sets us apart from many firms.

A commercial property owner might have various plans that would necessitate the services of a commercial real estate broker. Some of the common scenarios include:

1. Selling the Property: If the owner decides it’s time to sell the property, a commercial real estate broker can help determine the market value, market the property effectively, and negotiate with potential buyers to get the best possible price.

2. Leasing Space: For property owners looking to lease out part or all of their commercial space, a broker can help find suitable tenants, negotiate lease terms, and ensure the lease agreements meet all legal requirements and serve the owner’s best interests.

3. Acquiring More Properties: Owners looking to expand their portfolio would benefit from a broker's knowledge of the market, access to listings, and negotiation skills to secure additional properties at favorable terms.

4. Property Management: While not all brokers offer this service, some commercial real estate brokers or their affiliates offer property management services. This can be particularly appealing for owners who prefer a hands-off approach or are managing properties from a distance.

5. Market Analysis: Owners considering future developments, renovations, or rebranding of their property might engage a broker for a comprehensive market analysis. This helps in understanding current market trends, the demand for different types of spaces, and potential returns on investment for various strategies.

6. Refinancing: In situations where a property owner is looking to refinance their property, a commercial real estate broker can provide valuable insights into the property’s current market value, assist in gathering necessary documentation, and even help in finding the best financing options.

7. Partnership or Investment Opportunities: Owners interested in exploring partnerships, joint ventures, or seeking investors for expansion or development projects might use a broker to find and vet potential partners or investors.

8. Consulting on Zoning and Use Changes: When contemplating a change in the use of the property or dealing with zoning issues, a broker with experience in local regulations and the specific property type can provide guidance and strategic planning assistance.

9. Exit Strategy Planning: For owners looking to plan an exit strategy from their investment, whether it’s through a strategic sale or a gradual winding down of operations, brokers can provide market insights, timing advice, and valuation services to optimize the exit process.

In any of these scenarios, the expertise and services provided by a commercial real estate broker can save the property owner time and money, while also providing access to a wider network of potential buyers, tenants, and industry professionals. Give us a call today!

Find the perfect location for your business.

Let us help your business succeed.

šŸ’¹ Top Financial Metrics to Master in Commercial Real Estate šŸ¢

šŸ“Š Essential Metrics Every CRE Investor Should Track šŸ’¼

October 17, 2025•2 min read

šŸ“Š Essential Metrics Every CRE Investor Should Track šŸ’¼

šŸ’¹ Top Financial Metrics to Master in Commercial Real Estate šŸ¢


Key Metrics Every CRE Investor Must Know šŸ“Š

When it comes to commercial real estate investing, numbers tell the story. Whether you’re buying, selling, or refinancing, understanding the key performance indicators (KPIs) behind your asset’s value can make or break your deal.

Here are the most important metrics every savvy investor must master:


1ļøāƒ£ Net Operating Income (NOI)

Definition: Income after all operating expenses—but before debt service and taxes.
Why it matters: NOI determines a property’s profitability and is the foundation for calculating cap rates and value.


2ļøāƒ£ Capitalization Rate (Cap Rate)

Definition: The ratio of NOI to the property’s purchase price.
Formula: Cap Rate = NOI / Purchase Price
Investor Tip: Use cap rates to compare similar properties in a market. A lower cap often signals higher demand or perceived stability.


3ļøāƒ£ Cash-on-Cash Return

Definition: Measures the annual return on the cash you’ve actually invested.
Formula: Annual Pre-Tax Cash Flow / Total Cash Invested
Pro Insight: This is the go-to metric for investors using leverage—it shows what your money is really earning.


4ļøāƒ£ Internal Rate of Return (IRR)

Definition: The projected annualized return over the holding period.
Why it matters: IRR accounts for time value of money—critical for comparing long-term investments.


5ļøāƒ£ Debt Service Coverage Ratio (DSCR)

Definition: NOI / Annual Debt Service
Investor Tip: Lenders typically want a DSCR of 1.25x or higher. It shows the property generates enough cash flow to cover debt payments comfortably.


6ļøāƒ£ Loan-to-Value Ratio (LTV)

Definition: The loan amount divided by the property’s appraised value.
Why it matters: LTV determines leverage and impacts your borrowing terms—lower LTVs generally get better rates.


7ļøāƒ£ Vacancy Rate & Occupancy Rate

Definition: The percentage of rentable space unoccupied or occupied.
Insight: Investors use this to gauge market demand and property performance. High vacancy often means an overbuilt market.


8ļøāƒ£ Expense Ratio

Definition: Operating expenses divided by effective gross income.
Pro Tip: Efficient operations generally have an expense ratio below 40%, depending on property type.


9ļøāƒ£ Break-Even Ratio

Definition: Operating Expenses + Debt Service / Gross Operating Income
Why it matters: This shows how much vacancy the property can handle before it starts losing money.


šŸ”Ÿ Rent Growth Rate

Definition: The percentage increase in rental income year-over-year.
Why it matters: Consistent rent growth signals a healthy market and boosts long-term returns.


Final Takeaway

Commercial real estate is a numbers game—those who understand the math win. By tracking these ten key metrics, investors can identify value, manage risk, and make data-driven decisions that maximize returns.


https://www.houstonrealestatebrokerage.com/

https://www.houstonrealestatebrokerage.com/houston-cre-navigator

https://www.commercialexchange.com/agent/653bf5593e3a3e1dcec275a6

http://expressoffers.com/[email protected]

https://app.bullpenre.com/profile/1742476177701x437444415125976000

https://author.billrapponline.com/

https://www.amazon.com/dp/B0F32Z5BH2

https://veed.cello.so/FOmzTty6oi9


Ā© 2023-2024 Bill Rapp, Broker Associate, eXp Commercial Viking Enterprise Team


commercial real estate metricsNOI vs Cap Ratekey CRE investor KPIscash on cash returnDSCR ratio explainedinternal rate of return IRRloan to value LTVcap rate analysisproperty investment performancecommercial real estate investing 2025
blog author image

Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

Back to Blog

Find the perfect location for your business.

Let us help your business succeed.

Sign up to receive the latest news on property investment and commercial real estate listings.

Resources


Contact Us

27815 Astoria Brook Ln

Katy, TX 77494 USA


9600 Great Hills Trail, Suite 150w Austin, TX 78759 |
855.450.0324 xx255

Texas Real Estate Commission Consumer Protection Notice Texas Real Estate Commission

Information About Brokerage Services eXp Commercial LLC #9010212

Viking Enterprise LLC #9009614

Sign up to receive the latest news on property investment and commercial real estate listings.


Contact Us

27815 Astoria Brook Ln

Katy, TX 77494 USA

901 S Mopac Expwy, Bldg 2, Suite 350 Austin, TX 78746 | 512.474.5557Texas Real Estate Commission

Consumer Protection Notice Texas Real Estate Commission Information About Brokerage Services Reliance Retail, LLC #603091

Texas RS, LLC #9003193 | RESOLUT RE Is Licensed In Louisiana #0995694083