On-Going Investment Decisions to Increase Returns

After acquiring a commercial property, the investor has several decisions to consider over time in determining the optimal holding period.  A very common decision these days is to hold and do nothing. That may not necessarily be the best decision to optimize returns.  For example, refinancing could be beneficial to returns when the spread between current market interest rate fall 1.5- 2.0 % below the exiting mortgage rate.  Lease buyouts, renegotiation, and renovation decisions could all have a positive impact on improving returns.  Use of discounted cash flow (DCF) methods and IRR to compare alternatives can help financially justify your decisions.