In this short video, the host of America’s Commercial Real Estate Show, Michael Bull CCIM, discusses whether and when it makes sense to not have positive leverage. The answer is simple. If leverage is not positive, then returns better be coming from sources other than net operating income. Examples of this abound, however, as commercial property investors benefit from not only current income, but also growth in income, and benefits available from redevelopment or even solid management. For example, if you buy a property at a 3% cap rate in the belief that the land value will be 50% more than the purchase price in a couple of years, any leverage would be negative, but if the valuation comes to pass you’ll be sitting pretty.