Property Ownership

Buying, managing, and profiting from commercial real estate

Overview

Property ownership is the long-term wealth engine in CRE Tycoon. While deal commissions provide early income, your portfolio generates recurring monthly NOI (Net Operating Income) that becomes your primary profit source by mid-game. A diversified property portfolio with optimized asset classes and locations is critical for endgame success.

Purchasing Properties

Financing Structure

Every property purchase requires the same financing structure:

Purchase Example

Buying a $1.2M property:

Property Selection Strategy

Strategy Best Time Price Range Expected NOI Time to Profitability
Value Play Any time $750K-$1.2M $5-8K/month 2-4 turns
Growth Play Rank 3-6 $1.2M-$1.8M $8-12K/month 3-5 turns
Premium Play Rank 7+ $1.8M-$2.5M $12-20K/month 3-5 turns
Trophy Property Rank 10+ $2M-$3M+ $15-25K/month 4-6 turns

Asset Classes & Units

CRE Tycoon features four primary asset classes, each with different characteristics. Each property contains a specific number of units (spaces/units) depending on type and quality tier:

Units Per Property by Quality Tier

Quality Tier Retail Office Industrial Multifamily
Class C 6 units 10 units 4 units 12 units
Class B 10 units 18 units 6 units 24 units
Class A 16 units 30 units 10 units 40 units

Retail

Metric Value
Base Cap Rate 9% uniform
Typical Occupancy 70-85%
Volatility High (affected by market cycles)
Price Range $750K-$1.8M
Best For Early-mid game, high upside
Risk Level Medium-High

Characteristics: Shopping centers, storefronts, and commercial retail spaces. Highly cyclical—performs well in expansion phases but struggles during recessions. Excellent for value-adds.

Office

Metric Value
Base Cap Rate 9% uniform
Typical Occupancy 75-90%
Volatility Medium (steady but sensitive to econ)
Price Range $1.1M-$2.3M
Best For Mid-late game, stability play
Risk Level Medium

Characteristics: Commercial office buildings and business parks. More stable than retail with predictable tenant bases. Premium properties in Midtown and Uptown command high prices but offer reliable NOI.

Industrial

Metric Value
Base Cap Rate 9% uniform
Typical Occupancy 80-95%
Volatility Low (very stable)
Price Range $850K-$1.9M
Best For Steady income, portfolio stability
Risk Level Low

Characteristics: Warehouses, logistics, and manufacturing facilities. Highest occupancy rates and most stable NOI. Long-term tenant leases make industrial ideal for cash flow. Port District and Uptown industrial properties are especially valuable.

Multifamily

Metric Value
Base Cap Rate 9% uniform
Typical Occupancy 85-95%
Volatility Low (defensive)
Price Range $1M-$2.2M
Best For Defensive play, recession hedge
Risk Level Low

Characteristics: Apartment buildings and multi-unit residential properties. People always need housing, making multifamily recession-resistant. Slightly lower per-unit NOI than commercial but very reliable. Excellent for portfolio diversification.

Base Operating Expense Ratio by Type

Operating expenses vary significantly by property type. These ratios represent the percentage of gross rent consumed by operating expenses:

Property Type Operating Expense Ratio
Retail 35%
Office 40%
Industrial 25%
Multifamily 45%

Property Classes (A/B/C)

Independent of asset class, every property has a condition class:

Property Class Condition NOI Premium Typical Price Occupancy Value-Add Potential
Class A Premium, Recently Built +20% 20-30% higher 90-95% Low (already optimized)
Class B Standard, Well-Maintained 0% (baseline) Baseline 75-85% Medium (targeted upgrades)
Class C Value, Older, Needs Work -20% 20-30% lower 60-75% High (renovation potential)

Monthly NOI & Income

NOI Calculation

Monthly NOI = (Gross Rent × Occupancy Rate × Property Class Modifier) - Operating Expenses

Operating expenses vary significantly by property type. See the Base Operating Expense Ratio table above for type-specific percentages. For example:

Example: $1.2M Class B Retail Property

Note: This property breaks even around year 8-10 as the mortgage balance decreases and occupancy improves. Alternatively, renovations and occupancy improvements can make it cash-flow positive sooner.

Occupancy Management

Occupancy Rates

Occupancy varies by property, class, and market conditions:

Market Impact: Expansion phase +10% occupancy, recession phase -10% occupancy

Occupancy Velocity & Lease-Up

Properties naturally lease up over time based on market demand, but you can accelerate the process with leasing campaigns. Campaigns apply a velocity multiplier to occupancy gains:

See Leasing Campaigns section for full details on duration, multipliers, and costs.

Renovations & Upgrades

Renovation templates are property-type specific. Each template includes cost, duration (in turns), and impacts on rent, occupancy, quality level, and property value.

Retail Renovation Templates

Template Cost Duration Rent Occupancy Quality Value
Facade & Signage Refresh $35K 3 turns +8% +6% +8 +12%
Common Area Upgrade $50K 4 turns +10% +5% +10 +18%
Anchor Space Reposition $80K 6 turns (medium risk) +15% +8% +15 +30%
Parking & Lighting $25K 2 turns +5% +7% +6 +8%

Office Renovation Templates

Template Cost Duration Rent Occupancy Quality Value
Lobby Modernization $60K 4 turns +10% +6% +12 +20%
Spec Suite Buildout $45K 3 turns +8% +15% +8 +14%
Amenity Package $75K 5 turns (medium risk) +12% +8% +14 +28%
HVAC & Infrastructure $90K 6 turns (medium risk) +6% +3% +10 +22%

Industrial Renovation Templates

Template Cost Duration Rent Occupancy Quality Value
Loading & Yard Improvements $40K 3 turns +8% +7% +8 +14%
Office Space Refresh $30K 2 turns +7% +6% +6 +10%
Exterior Modernization $45K 3 turns +6% +5% +8 +14%
Efficiency Improvements $55K 4 turns +4% +2% +6 +16%

Multifamily Renovation Templates

Template Cost Duration Rent Occupancy Quality Value
Unit Renovations $50K 4 turns +15% +12% +12 +20%
Exterior & Curb Appeal $35K 3 turns +7% +8% +10 +12%
Amenity Package $70K 5 turns (medium risk) +12% +7% +14 +26%
Management Optimization $20K 2 turns +4% +5% +8 +6%

Renovation Strategy

Leasing Campaigns

Accelerate lease-ups and improve occupancy with targeted leasing campaigns:

Campaign Duration Velocity Multiplier Cost
Standard Lease-Up 4 turns 1.5x $8K
Re-Tenant Campaign 3 turns 1.3x $12K
Renewal Push 2 turns 1.0x $5K
Broker Leasing Campaign 5 turns 2.0x $20K

Investor Ranks

Your investor rank is determined by your portfolio value, monthly NOI, properties owned, and successful exits. Rank unlocks new capabilities and strategies:

Rank Title Portfolio Value Monthly NOI Properties Exits Unlocks
0 New Investor First property Any 1 0 Buy properties, Basic financing
1 Small Landlord $800K $2K 2 0 Up to 3 properties, Property upgrades, Basic stabilization
2 Operator $2M $5K 3 0 Value-add strategy, NOI optimization, Tenant quality control
3 Portfolio Manager $4M $10K 4 1 Cash-out refinance, Pull equity, Reinvest loop
4 Real Estate Investor $7M $20K 6 2 Multi-property financing, Portfolio bonuses
5 Developer $12M $35K 8 3 Ground-up development (coming soon), Premium lender access
6 Magnate $20M $60K 10 5 Passive income scaling, Institutional partnerships

Property Events

Random events affect your properties each turn. Some are positive, others create challenges:

Negative Events

Event Impact Duration Recovery Options
Pipe Burst -20% NOI for 2 turns 2 turns Contractor NPC (reduce to 1 turn, -10% impact)
Storm Damage -15% NOI for 1-2 turns 1-2 turns Insurance claim, -50% actual cost
Tenant Dispute -25% occupancy for 2 turns 2 turns Negotiate settlement, lease buyout
Power Outage -10% NOI for 1 turn 1 turn Emergency contractor work (-$5K, instant fix)
Anchor Tenant Leaving -30% occupancy immediately Ongoing until replaced Marketing campaign, tenant incentives

Positive Events

Event Impact Duration
Celebrity Tenant +20% occupancy, +15% NOI 4 turns
Community Award +10% property value, +5% occupancy Permanent
City Inspection (Passes) +$2-5K NOI if property is Class A 1 turn
Zoning Change (Positive) +10% property value Permanent
Viral Social Media +3% occupancy, +5% NOI 2 turns

Property Status Tags

Properties display status tags that reflect their current condition and potential:

Refinancing

Standard Refinance Configuration

Parameter Standard Broker Skilled Broker
Max LTV 72% 78%
Refi Cost 0.75% - 1.5% of loan amount
Min DSCR 1.05 0.95
Cooldown 6 turns between refinances
Interest Rate Spread 0.1% - 0.3% above market

Refinance Requirements

Refinance Example

Refinance Strategy

Bridge Loans

Bridge Loan Configuration

Parameter Value
Max LTV 90%
Rate Premium +2.5% above market rate
Origination Fee 2%
Refinance Deadline Must refinance within 12 turns
Penalty Rate if Not Refinanced +4.0% (applied after turn 12)
Min Broker Rank 4
Min Properties Owned 1

Bridge Loan Strategy

Portfolio Management

Diversification Strategy

Portfolio Stage Recommended Mix Strategy
Early (Rank 0-3) 2-3 properties, mixed class B Build foundation with stable properties
Mid (Rank 4-8) 5-8 properties, 40% industrial/multifamily, 60% office/retail Diversify across asset classes and districts
Late (Rank 9-13) 10-15 properties, 50% industrial/multifamily, 50% premium office Optimize for total NOI, add trophy properties

Geographic Diversification

Target NOI by Rank

Broker Rank Typical Portfolio Size Target Monthly NOI Properties Needed
Rank 0-2 1-2 properties $2-5K 1-2
Rank 3-5 3-5 properties $10-20K 3-5
Rank 6-8 6-10 properties $30-50K 6-10
Rank 9-11 10-15 properties $60-100K 10-15
Rank 12-13 15-20+ properties $100-200K+ 15-20+

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