Return on Investment (ROI) is a measurement of how much money an investor receives from an investment after all expenses have been deducted. The formula for ROI is:
ROI = (Investment Gain - Investment Cost)/Cost of Investment
Many factors affect the ROI of a commercial real estate investment, including the size of any commercial real estate loans on the property, the interest rate of those loans, as well as any management, repair, or renovation expenses needed to maintain or upgrade the property.