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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.

View Properties

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

View Properties

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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!

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📊 Underwriting a Commercial Deal Like a Pro: How Investors Really Analyze CRE 💼

Commercial Real Estate

January 22, 2026•3 min read

📊 Underwriting a Commercial Deal Like a Pro: How Investors Really Analyze CRE 💼

🏢 Underwriting Commercial Real Estate Deals Like a Pro: Numbers, Risk & Returns 📈

Underwriting a Commercial Deal Like a Pro

Underwriting is where commercial real estate deals are truly won—or quietly lost. The purchase price might get the attention, but professional investors and lenders focus on cash flow, risk, and durability. If you want to underwrite commercial real estate like a pro, you must think the way lenders, equity partners, and institutional buyers do.

This guide walks through the real-world underwriting framework used by experienced investors and commercial lenders.

Step 1: Start With the Income—Not the Asking Price

Professional underwriting always begins with Net Operating Income (NOI), not the broker’s pro forma.

Key income checks include:

·In-place rents vs. market rents

·Lease terms and expiration risk

·Tenant credit quality

·Vacancy and credit loss assumptions

Overestimating income is the fastest way to overpay for a deal.

Step 2: Normalize Expenses Like a Lender

Many deals look good on paper because expenses are understated.

Professionals normalize:

·Property taxes (post-sale reassessment)

·Insurance (especially in Texas)

·Repairs & maintenance

·Management fees (even if self-managed)

·Reserves for capital expenditures

If expenses look “too clean,” they probably are.

Step 3: Stress-Test the NOI

Smart underwriting assumes things will go wrong.

Run scenarios for:

·Higher vacancy

·Slower lease-up

·Expense inflation

·Rent stagnation

·Tenant rollover risk

If the deal only works in a perfect scenario, it is not a professional deal.

Step 4: Understand Debt Before You Lock the Deal

Financing is not an afterthought—it is part of underwriting.

Key lender metrics include:

·DSCR (Debt Service Coverage Ratio)

·Debt Yield

·Loan-to-Value (LTV)

·Interest rate sensitivity

Many commercial deals fail because buyers underwrite with hypothetical debt, not actual lender terms.

Step 5: Analyze Cash Flow, Not Just Cap Rate

Cap rate is a starting point—not the answer.

Professionals focus on:

·Cash-on-cash return

·Breakeven occupancy

·Refinance risk

·Exit cap sensitivity

A lower cap deal with strong financing can outperform a higher cap deal with weak structure.

Step 6: Know Your Exit Before You Buy

Every professional underwrite includes an exit strategy:

·Who is the buyer at sale?

·What cap rate will they require?

·What condition will the asset be in?

·Is the value creation realistic?

Hope is not an exit strategy.

Step 7: Align the Deal With the Right Capital Stack

Great deals fail when capital is mismatched.

Professional underwriting considers:

·Equity expectations

·Preferred returns

·Refinance windows

·Hold period discipline

The right structure can turn an average deal into a strong one.

Final Thought: Underwriting Is a Skill—Not a Spreadsheet

Software helps, but judgment wins deals.

The best investors combine:

·Conservative assumptions

·Lender-first thinking

·Market awareness

·Discipline on price

If you want to underwrite commercial deals like a pro, think like the person funding the deal—not the person selling it.

If you want a second set of eyes on a deal—or want help aligning financing with your acquisition strategy—the Viking Enterprise Team at eXp Commercial is built for that conversation.

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

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https://buymeacoffee.com/vikingente3

https://creplaybookseries.billrapponline.com

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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.

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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.