Humber Real Estate Course 4: Commercial Transactions Exam Guide
Course 4: Commercial Real Estate Transactions covers the commercial side of real estate. Despite having the most textbook pages (3,000+), many students find it more manageable than Course 2 because the concepts are logical and calculation-driven.
Key Topics in Course 4
- Commercial property types — Office, retail, industrial, mixed-use, special purpose
- Commercial leasing — Net leases, gross leases, percentage leases, lease analysis
- Investment analysis — Cap rates, NOI, cash-on-cash return, GRM
- Commercial mortgage financing — Commercial lending criteria, DSCR, LTV
- Site analysis — Zoning, environmental, traffic patterns, demographic analysis
- Commercial agreements — APS for commercial, Letters of Intent, due diligence
Essential Formulas
- Cap Rate = Net Operating Income / Purchase Price
- NOI = Effective Gross Income - Operating Expenses
- Cash-on-Cash Return = Annual Before-Tax Cash Flow / Total Cash Invested
- Gross Rent Multiplier = Purchase Price / Gross Annual Rent
- DSCR = NOI / Annual Debt Service
Study Strategy
- Master the formulas — These are guaranteed marks if you can apply them
- Understand lease types — Know the difference between net, gross, and percentage leases
- Focus on investment analysis — Cap rate calculations appear frequently
- Don't get overwhelmed by volume — 3,000 pages sounds intimidating, but much of it is reference material you won't be tested on directly
Get the Course 4 Study Guide
Master cap rates, NOI, leasing, and commercial agreements. Our Course 4 guide makes the formulas click.
Get the Course 4 Guide — $19.99Frequently Asked Questions
Is Course 4 harder than Course 2?
Most students find Course 4 easier than Course 2 despite the higher page count. Commercial concepts are more calculation-driven and logical, while Course 2 requires deeper understanding of complex agency and transaction theory.
What formulas do I need to know for Course 4?
Key formulas include: Capitalization Rate (NOI/Price), Net Operating Income (EGI - Expenses), Cash-on-Cash Return (Cash Flow/Cash Invested), Gross Rent Multiplier (Price/Gross Rent), and Debt Service Coverage Ratio (NOI/Debt Service).