- 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
- Subleasing Solutions
A year ago sublease space decimated the national office market occupancy rate, yet the trend appears to be waning. After reaching its peak of nearly 25 percent of the national vacancy rate in first quarter 2002, sublease space has slowly
- 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
- 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
- Got Space?
Experts agree Tenants rule the commercial real estate market. Occupancies across all property types either continue to slide or are stagnant, and many brokers don't expect relief until next year. “Now is a great time to be a tenant,” says
- The GSA Way
The General Services Administration probably is the largest U.S. tenant, providing space for more than 400 federal government agencies, bureaus, and commissions with more than 1 million employees and contractors. At the end of its fiscal year 2010, GSA’s leased
- Redefining GSA Leases
While few see an upside to the down economy, this turbulent cycle has prompted many commercial real estate companies to evaluate the efficiency of their business processes. The federal government is no exception. Earlier this year, the U.S. General Services
- 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,
- 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
- 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
- Leasing Lessons
Analyzing commercial real estate leases in today's rapidly changing marketplace is a daunting task. But if performed properly, this process can have a very important economic impact on landlords, owners,
- Smart Leasing Strategies
Free rent or increased tenant improvement allowances? Long term leases at fixed rates or short term leases with rights to expand? Landlords all over the country are trying to determine the magic combination of terms and rates that will entice
- 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
- Ground Control
Commercial real estate developers and investors often favor total fee ownership of income property. The propensity to own and the emotions attached to it sometimes can result in misguided decisions and strategies and lost opportunities. Relinquishing ownership of income property
- NPV Review
One of the most useful economic decision making tools for commercial real estate users and investors is discounted cash flow analysis. The first step in the DCF process is to reduce each alternative being analyzed to the amounts and timing
- 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
- 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
- Coping with Marketplace Shifts
With the economy no longer on a long term growth trajectory, retail real estate users and providers must reassess how they do business. Several significant changes already have occurred. For example, lenders are now more actively involved in transaction approval.
- Counting Leases Before They Hatch
The accounting profession is currently evaluating a proposed new standard that promises to fundamentally change the ways landlords and tenants account for — and negotiate — leases. Under review is a proposed rewriting of the Financial Standards Accounting Board’s Accounting
- 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
- 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
- Beyond the LOI
Landlords in this anemic leasing market want to act quickly to get leases signed and rent payments started. Economic instability brings fresh urgency to the need for increased occupancy. But delays and roadblocks can slow the process and frustrate a
- 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.
- 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.
- 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