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The Potential Impact of Lease Accounting Changes on Corporate Real Estate Decision-Making 

The Financial Accounting Standards Board and the International Accounting Standards Board aim to create a unified set of lease accounting standards as part of a larger global convergence initiative. With the goal of improving lease information transparency and comparability, the

How Much Space Do We Need? 

No company ever seems to have the right amount of office space. Firms grow and shrink throughout the years for many reasons however, they must contract for space over a set lease term of five, 15, or even 20 years.

Affordable Green Leasing 

The article “Not Easy Leasing Green” (CIRE, September October 2012, p.36) told an unpopular truth. It tallied a long list of hurdles confronting tenants and landlords who pursue Leadership in Energy and Environmental Design certification. This situation helps explain why

Ground Control 

Editor's note Originally published in 2006, “Ground Control" is one of the most popular articles in CIRE's archive. Author Philip “Fred” Himovitz updated the article for republication. Commercial real estate developers and investors often favor total fee ownership of income

Triple-Net Effects 

A prime advantage of commercial real estate ownership is the inflation hedge it creates. By periodically raising rents, real estate owners can keep pace with inflation and preserve the purchasing power of their rent dollars. However, when leases fail to

Office Leasing Trends 

What key points attract nonprofit tenant interest? As traditional office tenants undergo a seismic shift in their space-using habits, office leasing professionals realize that less-well-known tenant groups, such as nonprofit organizations, are coming to the fore as office space users. Nonprofit organization

Lease Buyout Decisions 

Making decisions in commercial real estate often involves more than just calculating a capitalization rate or net present value, because there is always a component of unknown risk. In the office leasing sector, risk is created by local market factors,

Fitting Plans for the Future 

Three new FASB accounting standards with wide-ranging consequences are taking effect: revenue from contracts with customers, lease accounting, and current expected credit losses. An they may require substantial implementation efforts from corporate accounting and finance departments.

Surviving Volatility 

The coronavirus pandemic turned the world upside down, so CRE professionals will need creative options when it comes to renegotiating leases.

Net-Leased Single-Tenant Risks 

Net leased single tenant is the most sought after property type for investors seeking lower management intensive products, fewer owner costs, and stable monthly incomes. While net leased single tenant properties have always been favored by individual investors, in many

To Lease or not to Lease? 

A principal goal of corporate management is to make a business worth more than the cost of its underlying assets. To create such shareholder wealth, management has three levers at its disposal asset efficiency, operating efficiency, and capital efficiency. Asset

Risky Business 

Moving forward, investment risk does not center on how likely a tenant is to default within 12 to 18 months, which is the general timeframe of a corporate credit rating. The concern is how likely the lease contract is to perform over its entire life, which may be 10 years or longer. Most businesses that rely heavily on real estate in their day-to-day operations prefer leasing to ownership for managing their real estate locations. Among the many reasons for this preference are the cost of capital and corporate flexibility.

Lease Option or Sale? 

Editor’s note This article, which originally appeared in Commercial Investment Real Estate, July August 1996, is one of the most popular articles downloaded from the CIRE archive. Here is a condensed version of the original article. Make better occupancy decisions

Evaluating Creditworthiness 

 

Commitment: The Cornerstone of Net Lease 

One of the most appealing aspects of net lease is its focus on the long term. Since net leases are traditionally longer, investors can rely on stable continuous income, and tenants can count on predictable leasing costs. 

Sale-Leaseback Solutions 

While sale leaseback transactions may be structured in a variety of ways, a basic sale leaseback can benefit both the seller lessee and the buyer lessor. However, all parties must consider the business and tax advantages, disadvantages, and risks involved

Smarter Subleasing 

In the current rapidly changing commercial real estate market, it is more important than ever that landlords and tenants understand the complexities of marketing and negotiating office subleases. Commercial real estate professionals need to be fully equipped to address all

Singling Out Triple-Net Leases 

Many real estate investors think nothing could be simpler than an investment in a triple net leased (also known as NNN) property. Some liken it to buying a bond. While straightforward to own and operate, triple net leased properties can

Retention Attention 

What do leasing reps have to do these days to fill their spaces? Well, what about bartering? &ldquo It&rsquo s something we are working out,&rdquo says Stan Stouder, CCIM, a partner with CB Richard Ellis Brokerage Services in Fort Myers,

Today’s Office Tenets 

Though commercial real estate is rapidly becoming a globalized industry, many factors affecting it remain rooted in local economies. Now more than ever, market specific drivers such as companies’ expansion plans, shadow space availability, job creation, and even traffic congestion

Towers of Babble 

Commercial real estate owners have discovered gold mines right in their own backyards — cellular phone antenna leases. With more than 115 million people across the United States talking on cell phones, telecommunications companies continually are expanding the number of

Lease Option or Installment Sale? 

A lease with an option to purchase, also known as a "lease option," is a common real estate arrangement. The important income tax question in lease option transactions is whether the tenant is leasing the property or, as an economic

Negotiating With the GSA 

When it comes to lease negotiations with the General Services Administration, the federal government’s real estate division, commercial real estate professionals must be prepared. Offerors – those who respond to GSA’s solicitations for space – must read solicitation and lease

Industrial Leasing Insights 

Commercial Investment Real Estate asked industrial real estate experts nationwide to share the biggest leasing challenges in their markets and strategies they are using to secure deals. Here’s what they said Kansas City, Mo.Greatest challenge The ownership over leasing paradigm

Outdoor Advertising 

One of your clients owns a well located multitenant office building and wants to generate some ancillary income to augment the rental revenue. Another client who owns an acreage abutting an interstate highway is looking for a way to help