September 20, 2023
The posts featured in this category will focus on what are called FF&E Assets. Those in the CRE or commercial real estate industry know that FF&E stands for “Furniture, Fixtures and Equipment”. For the sake of bookkeeping, these are tangibles that are a part of a commercial property or lease agreement and these items typically depreciate over time as a result of ‘wear and tear.’ These fluctuating values are generally reflected in the financial statements of the leased property.
When it comes to furniture, this may include desks and chairs as well as other items used to furnish a work environment. Also, typically included will be items presented in a business waiting room such as couches and end tables.
Fixtures will involve items that are actually attached to or ‘fixed’ to the property but not a part of the actual structure. These tangibles include lighting fixtures as well as shelving and cabinets.
As for the matter of equipment, this covers a more broad range of items. This generally includes office equipment and machinery such as computers, printers and any specialized equipment that is designed for use in a very specific industry.
When it comes to owning, buying or selling an existing business FF&E assets are important components when it comes to determining the fair value of a commercial property. FF&E is just one more ball to juggle in the world of commercial real estate that can be made easier through CRE software such as Quarem’s own FF&E software.