Commercial real estate is often viewed as one of the most stable paths to building long-term wealth, but success in the space requires more than capital. It takes strategic analysis, a firm grasp of the numbers, and the discipline to walk away when a deal doesn’t add up.
Brian Casella, founder of BDC Realty LLC in Connecticut, has built a portfolio by staying grounded in fundamentals while knowing exactly what to look for in every deal. We sat down with him to understand his approach to commercial investing—from evaluating opportunities to calculating real returns.
Q: What’s the first thing you look at when considering a property?
Brian Casella: The first thing I evaluate is the income potential and whether it’s currently being maximized. That starts with location, but not in the general sense people often throw around. I’m analyzing traffic patterns, zoning flexibility, surrounding businesses, demographic trends, and rent comparables.
Beyond that, I’m asking: What’s the story behind the numbers? Is the property underperforming due to poor management? Is there deferred maintenance I can address in exchange for higher rents? If I don’t see a clear, realistic path to increase value or generate steady returns, I’m not interested.
Q: How should investors evaluate ROI and performance metrics?
Casella: ROI isn’t just one number—it’s a stack of metrics that should work together to paint the full picture.
Cap Rate tells you how the property performs relative to the purchase price, but it’s just a starting point.
Cash-on-Cash Return is critical if you’re using financing, because it reflects your actual return on invested cash.
Internal Rate of Return (IRR) gives you a long-term, time-adjusted view of performance, especially useful for value-add deals or projects with cash flow changes over time.
I underwrite deals with conservative assumptions on rents, expenses, and vacancy. Overly optimistic projections are how people get burned. I’d rather project modest returns and beat them than set unrealistic expectations.
Q: What makes a property worth pursuing when others might overlook it?
Casella: The key is being able to spot value that has yet to be realized. I focus on properties where I can directly influence the NOI through renovations, better leasing strategy, or operational efficiency. A lot of investors chase trophy assets, but I prefer underutilized buildings with upside.
Sometimes it’s as simple as improving signage, updating finishes, or renegotiating leases. If you know how to increase cash flow, even a property that looks average on the surface can turn into a strong performer.
Q: What’s your advice to someone new in commercial real estate?
Casella: First, learn how to underwrite deals. You can’t rely on brokers or sellers to do that for you. Get familiar with how to read a rent roll, a profit-and-loss statement, and a lease agreement. Understand how different asset classes behave—retail, office, industrial, mixed-use—and what tenants expect in each.
Second, be patient. You don’t need to do your first deal tomorrow. Walk properties, run the numbers, and learn how to spot red flags. Surround yourself with a solid team: broker, attorney, lender, inspector. Real estate is not a solo business.
Lastly, don’t chase a deal just to say you’re in the game. The best investors are the ones who pass on bad deals and wait for the right opportunity.
Q: How do you define success in commercial investing?
Casella: Success is about long-term value and consistent performance. I look for assets that produce strong, stable income and appreciate over time, not just speculative upside. If a deal fits my strategy, has a clear path to improved NOI, and can weather market cycles, that’s a win.
For Brian Casella, smart investing isn’t about luck or timing—it’s about preparation, discipline, and the ability to see what others overlook. Whether you’re new to commercial real estate or looking to sharpen your investment strategy, his approach offers a solid foundation to build on.
