This document discusses trends in the Mid-Atlantic commercial realty market. Vacancy rates increased in Northern Virginia, Suburban Maryland, and Washington DC in 2009. Asking rental rates decreased 3-5% while effective rental rates fell 10-20%. Landlords are offering more free rent to keep rental rates high and attract tenants in the weak market. Offering free rent allows landlords to report higher property values, as value is based on rental income. Tenants have negotiating leverage and should seek reduced leasing costs through concessions like free rent.
The document discusses loan modification and workout services provided by 1st Service Solutions including: restructuring loan terms, waiving penalties and fees, forbearance on requirements, collateral substitutions, and adding mezzanine debt. It also discusses loan workout consulting services for maturing loans, formulating alternative strategies for non-performing loans, and creative exit strategies. It advises contacting them as soon as possible for troubled assets and offers their services through LandAmerica at competitive pricing.
The document discusses opportunities in buying repossessed homes (REOs) from banks at discounted prices and reselling them for a profit using a turnkey support service. Key points:
- REOs can be purchased in bulk from banks for $18-21k each and resold for $35k or more through a support service that handles listing, sales, and paperwork.
- The support service qualifies buyers, sells homes on land contracts within 90 days, collects payments, and guarantees property exchanges if needed.
- Investors can earn cash flow from monthly payments and profit when buyers obtain loans to pay off contracts after a year of on-time payments. The process provides opportunities for investors, buyers, banks
Contracts are an agreement for the exchange of a product or service and form a cornerstone of productive exchange in B2B markets. An important conundrum that managers face is to balance the degree of specificity in contracts. One the one hand crafting more detailed clauses clarify roles and responsibilities and reduces potential misunderstandings while safeguarding investments by discouraging the counter-party from engaging in opportunistic re-negotiations. On the other hand, keeping contract terms open enables ex post value-enhancing adjustments but also gives the counter-party an opportunity to exploit unspecified loopholes that lead to higher problems afterwards. We suggest a three-step approach to contracting to deal with this conundrum.
Deathgrip Leasing And acts of Unethical BehaviorHomealoneagain
The document summarizes a predatory leasing practice called a "DeathGrip lease". Key characteristics of a DeathGrip lease include:
1) At the end of the lease term, the lessee is not allowed to simply return the equipment, but must instead choose from three restrictive options - purchase the equipment at a price to be negotiated, lease replacement equipment at terms to be decided, or renew the lease at the original rate.
2) The negotiated purchase price or replacement lease terms are not required to be reasonable and there is no dispute resolution process if the parties cannot agree.
3) If purchase or replacement lease terms cannot be agreed upon, the lease automatically renews at the original rate,
Contract ambiguity in relation to one’s obligations can be a strategic tool to enhance joint problem solving and collaboration while also deterring litigation, thereby enhancing performance.
In marketing contracts between powerful firms and weak firms, it can be mutually beneficial for the powerful firm to “tie its own hands” at the initial contract by putting in place safeguards to protect the weak firm in the ongoing relationship.
1) Hiring a commercial real estate broker will not increase leasing costs and can save a tenant thousands of dollars over the term of a lease.
2) Without a broker, a landlord has an advantage in negotiations and can charge above market rents and concessions. A case study shows a tenant paying $113,500 more without a broker.
3) Brokers represent the tenant's interests and know the market to negotiate the best deal, while the landlord's goal is to maximize profits without regard for the tenant.
The document discusses a case study about Vincent Colmo and Daniel Delconte who partnered to form River Triangle Associates (RTA) to invest in real estate properties. It describes their Steel Street project, a 6-story office building renovation in Pittsburgh that ran into cost overruns and leasing issues. Their options are analyzed, with providing leasing incentives and contributing more equity identified as the best approaches to improve the project returns. Sensitivity analysis is also conducted to understand the impact of variables like vacancy rates, rental rates, costs, and financing changes.
The document discusses loan modification and workout services provided by 1st Service Solutions including: restructuring loan terms, waiving penalties and fees, forbearance on requirements, collateral substitutions, and adding mezzanine debt. It also discusses loan workout consulting services for maturing loans, formulating alternative strategies for non-performing loans, and creative exit strategies. It advises contacting them as soon as possible for troubled assets and offers their services through LandAmerica at competitive pricing.
The document discusses opportunities in buying repossessed homes (REOs) from banks at discounted prices and reselling them for a profit using a turnkey support service. Key points:
- REOs can be purchased in bulk from banks for $18-21k each and resold for $35k or more through a support service that handles listing, sales, and paperwork.
- The support service qualifies buyers, sells homes on land contracts within 90 days, collects payments, and guarantees property exchanges if needed.
- Investors can earn cash flow from monthly payments and profit when buyers obtain loans to pay off contracts after a year of on-time payments. The process provides opportunities for investors, buyers, banks
Contracts are an agreement for the exchange of a product or service and form a cornerstone of productive exchange in B2B markets. An important conundrum that managers face is to balance the degree of specificity in contracts. One the one hand crafting more detailed clauses clarify roles and responsibilities and reduces potential misunderstandings while safeguarding investments by discouraging the counter-party from engaging in opportunistic re-negotiations. On the other hand, keeping contract terms open enables ex post value-enhancing adjustments but also gives the counter-party an opportunity to exploit unspecified loopholes that lead to higher problems afterwards. We suggest a three-step approach to contracting to deal with this conundrum.
Deathgrip Leasing And acts of Unethical BehaviorHomealoneagain
The document summarizes a predatory leasing practice called a "DeathGrip lease". Key characteristics of a DeathGrip lease include:
1) At the end of the lease term, the lessee is not allowed to simply return the equipment, but must instead choose from three restrictive options - purchase the equipment at a price to be negotiated, lease replacement equipment at terms to be decided, or renew the lease at the original rate.
2) The negotiated purchase price or replacement lease terms are not required to be reasonable and there is no dispute resolution process if the parties cannot agree.
3) If purchase or replacement lease terms cannot be agreed upon, the lease automatically renews at the original rate,
Contract ambiguity in relation to one’s obligations can be a strategic tool to enhance joint problem solving and collaboration while also deterring litigation, thereby enhancing performance.
In marketing contracts between powerful firms and weak firms, it can be mutually beneficial for the powerful firm to “tie its own hands” at the initial contract by putting in place safeguards to protect the weak firm in the ongoing relationship.
1) Hiring a commercial real estate broker will not increase leasing costs and can save a tenant thousands of dollars over the term of a lease.
2) Without a broker, a landlord has an advantage in negotiations and can charge above market rents and concessions. A case study shows a tenant paying $113,500 more without a broker.
3) Brokers represent the tenant's interests and know the market to negotiate the best deal, while the landlord's goal is to maximize profits without regard for the tenant.
The document discusses a case study about Vincent Colmo and Daniel Delconte who partnered to form River Triangle Associates (RTA) to invest in real estate properties. It describes their Steel Street project, a 6-story office building renovation in Pittsburgh that ran into cost overruns and leasing issues. Their options are analyzed, with providing leasing incentives and contributing more equity identified as the best approaches to improve the project returns. Sensitivity analysis is also conducted to understand the impact of variables like vacancy rates, rental rates, costs, and financing changes.
The newsletter discusses various topics related to office leasing and management. It provides tips on negotiating leases in today's flexible market, how to effectively manage an office build-out project, alternatives like build-to-suit leases that allow customization without ownership, and common mistakes made in office leasing like underestimating space needs or leaving insufficient time in the lease. The newsletter aims to help tenants maximize value and minimize costs when leasing or developing office space.
Commercial and residential properties in uae.bayutproperty
Finding property is easy with BayutProperty, as it is the best property finder portal site in UAE. Here you can search, compare & buy both residential and commercial properties for sale and rent. Each of our properties have amenities that perfectly suits your needs like swimming pool, 24hr security, dedicated children's play areas, shopping malls and best hospitals.
This document provides information to help readers choose an appropriate loan for a property investment. It discusses how the right loan can influence cash flow and returns. It then introduces Mortgage Choice, who can help investors understand their borrowing capacity and recommend suitable loan options. Key services mentioned are providing estimates of potential rental income and repayments to help narrow a property search.
This document summarizes the multi-residential rental market in Halifax, Nova Scotia. It finds that Halifax remains predominantly a rental market compared to other major Canadian cities. While condo development has increased, rental demand remains strong. The cost of renting an apartment in Halifax is approximately 20% lower than the cost of owning a condo when considering taxes and other ownership costs. Regular annual increases in operating costs and necessary repairs put downward pressure on property values over time unless rental rates are also increased annually to maintain revenues and asset values. The summary demonstrates how a small annual increase in rent of one cent per square foot can significantly increase revenues, net operating income, and property values over a 5 year period compared to keeping rents flat.
Our Buyers Guide to Contractor Mortgages helps to explain the whole process surrounding buying a house when you are a contractor. The slide show is broken down into specific sections detailing; 1. Why Contractors find it difficult to get a mortgage with High St lenders 2. First time buyers 3. Remortgaging 4. Buy to let for Contractors 5. Help to Buy for Contractors 6. What Mortgages are available 7. How much a Contractor can borrow and 8. The overall mortgage process explained.
Houston's Office Tenant Letter - February 2010Bob Lowery
- Lease audit requests have almost doubled in major cities in 2009 as tenants look for ways to reduce real estate expenses. Around 75% of audits uncover landlord overbillings or incorrect charges related to operating expenses.
- Common disputes involve landlords incorrectly including capital expenditures or management fees in operating expenses, which tenants partly pay. Audits also find landlords incorrectly calculating expense adjustments from declining occupancy.
- In response, some landlords are adding lease clauses that restrict tenants' rights to audit or hire certain types of auditors. However, estimates show auditors find modifications in over 90% of lease audits.
This Presentation is a comprehensive look at an office lease from the tenant's perspective. The Landlord is looking out for themselves; who is going to look out for the tenant?
Besides the basic economics of a deal the lease establishes the rules and mechanisms that a Tenant has to live by for many years. A professional commercial real estate broker should be able to review a lease and make recommendations if needed to modify the lease. This is often done hand in hand with an attorney.
Have you ever dreamed of becoming a savvy real estate investor?
Hosted and presented by this area's industry experts, free slideshare will prepare you for the real estate, property management, mortgage, tax, and settlement expectations for investment property ownership.
Did you know:
You can make more money with less risk in long term real estate investment than in flipping homes?
Property management fees are tax deductible?
You need 2 years of landlord experience for rental income to be considered as cash flow for another property?
Less rent CAN be more return?
Learn more about these topics and the best ways to invest in residential real estate with this presentation, assembled by local area experts: Tommy Chambers, Vince Coyle, Tommy Trask, and Helen Krause.
The document discusses flexibility in office leasing terms for startup and growing companies. It notes that historically, leases focused on precise economic terms like rent and length, without flexibility. However, today's mobile workforce requires more flexibility to allow companies to easily expand, contract, or terminate leases as their needs change. The best deals for growing companies focus on flexibility through options like shorter lease terms, expansion rights, and termination clauses. Flexibility can be increased by minimizing construction costs during the lease negotiation.
The document discusses factors to consider when purchasing a rent roll from another property management company, including conducting due diligence on the rent roll's performance, properties, landlords, and staff. It provides tips for appraising the rent roll's value, obtaining financing, drafting protective contracts, and smoothly transitioning management responsibilities post-purchase.
Rent to own real estate strategy - turn dead lead to $ march 2012Thomas Wong
Thomas Wong, Lease Option Specialist of www.rtosc.com, presented the technique and strategy of rent to own. How this can help real estate agents to turn dead leads to $$?
Commercial Leases, Their Provisions and Pitfalls to Avoid (Series: Real Estat...Financial Poise
Like any other contract, the provisions of a commercial lease are negotiable. Yet, like so many contracts, commercial leases can be confusing to anyone who does not negotiate them for a living. This webinar explains many of the common provisions in a typical commercial lease (e.g. competition clauses, destruction/condemnation provisions, enforcement provisions, escalation clauses, purchase and renewal options, subletting and assignment provisions, use provision- just to name some examples) and discusses what is “market” with respect to them.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/commercial-leases-their-provisions-and-pitfalls-to-avoid-2020/
[Era] cost reduction guide - issue 1 - property and premises costsManuel A. Velazquez
The document provides tips and advice for reducing non-core operating costs related to business property and premises. It discusses saving on energy costs through careful monitoring of energy markets and timing of contract renewals. It also discusses negotiating lease terms more favorably for tenants given current economic conditions, such as removing break clauses in return for rent reductions. Lastly, it discusses getting better value from suppliers through implementing performance measurement systems and centralized purchasing programs.
Cost Reduction Guide Issue 1 Property And Premises Costsymw15
This document provides a guide to reducing operating costs related to business property and premises. It discusses areas where large cost savings can be found, such as energy and utilities, legal/finance aspects of leases, and building/facilities management. Specific tips include carefully timing energy contract renewals, negotiating lease terms like rent reviews and break clauses, challenging property tax assessments, and consolidating suppliers to improve value. Implementing strategies like these can significantly reduce non-core property expenses.
REAL ESTATE LAW DUMBED DOWN 2022 - Representing the Commercial TenantFinancial Poise
A commercial tenant views a lease negotiation quite differently than does the landlord. As most leases tend to be drafted by the landlord, a tenant must begin an uphill battle to gain as many concessions as possible. This is an arduous task made easier by a full understanding of what are the most important issues for a tenant in a commercial lease transaction.
How does the financial profile of the tenant enter into the picture? Where can a tenant get hurt the most by hidden costs or unforeseen expenses? Why is “leverage” the most important concept to consider in this process? This webinar will help one understand how the tenant, generally the underdog in lease transactions, can turn the tables and become the most powerful player in the leasing game.
Part of the webinar series: REAL ESTATE LAW DUMBED DOWN 2022
See more at https://www.financialpoise.com/webinars/
Selasturkiye Real Estate Business Model By FnisZiya NISANOGLU
The document discusses how changes in the real estate industry, including the shift in leverage from brokers to agents resulting in declining broker profitability, have necessitated that brokers reevaluate and "remargin" their businesses. It describes current and emerging business models brokers can adopt, such as offering ancillary services or using different compensation structures for agents, to increase profit margins. The key is for brokers to change their business model in order to adapt to the new environment and remain profitable.
December 2009 - Office Tenant NewsletterBob Lowery
Houston's Office Tenant Representation Newsletter - December 2009
Contains: Information about Lease Audit Provisions
Capping Operating Expenses to the benefit of the tenant, economic charts, and weekly rewind via Robert Lowery's Blog
The newsletter discusses various topics related to office leasing and management. It provides tips on negotiating leases in today's flexible market, how to effectively manage an office build-out project, alternatives like build-to-suit leases that allow customization without ownership, and common mistakes made in office leasing like underestimating space needs or leaving insufficient time in the lease. The newsletter aims to help tenants maximize value and minimize costs when leasing or developing office space.
Commercial and residential properties in uae.bayutproperty
Finding property is easy with BayutProperty, as it is the best property finder portal site in UAE. Here you can search, compare & buy both residential and commercial properties for sale and rent. Each of our properties have amenities that perfectly suits your needs like swimming pool, 24hr security, dedicated children's play areas, shopping malls and best hospitals.
This document provides information to help readers choose an appropriate loan for a property investment. It discusses how the right loan can influence cash flow and returns. It then introduces Mortgage Choice, who can help investors understand their borrowing capacity and recommend suitable loan options. Key services mentioned are providing estimates of potential rental income and repayments to help narrow a property search.
This document summarizes the multi-residential rental market in Halifax, Nova Scotia. It finds that Halifax remains predominantly a rental market compared to other major Canadian cities. While condo development has increased, rental demand remains strong. The cost of renting an apartment in Halifax is approximately 20% lower than the cost of owning a condo when considering taxes and other ownership costs. Regular annual increases in operating costs and necessary repairs put downward pressure on property values over time unless rental rates are also increased annually to maintain revenues and asset values. The summary demonstrates how a small annual increase in rent of one cent per square foot can significantly increase revenues, net operating income, and property values over a 5 year period compared to keeping rents flat.
Our Buyers Guide to Contractor Mortgages helps to explain the whole process surrounding buying a house when you are a contractor. The slide show is broken down into specific sections detailing; 1. Why Contractors find it difficult to get a mortgage with High St lenders 2. First time buyers 3. Remortgaging 4. Buy to let for Contractors 5. Help to Buy for Contractors 6. What Mortgages are available 7. How much a Contractor can borrow and 8. The overall mortgage process explained.
Houston's Office Tenant Letter - February 2010Bob Lowery
- Lease audit requests have almost doubled in major cities in 2009 as tenants look for ways to reduce real estate expenses. Around 75% of audits uncover landlord overbillings or incorrect charges related to operating expenses.
- Common disputes involve landlords incorrectly including capital expenditures or management fees in operating expenses, which tenants partly pay. Audits also find landlords incorrectly calculating expense adjustments from declining occupancy.
- In response, some landlords are adding lease clauses that restrict tenants' rights to audit or hire certain types of auditors. However, estimates show auditors find modifications in over 90% of lease audits.
This Presentation is a comprehensive look at an office lease from the tenant's perspective. The Landlord is looking out for themselves; who is going to look out for the tenant?
Besides the basic economics of a deal the lease establishes the rules and mechanisms that a Tenant has to live by for many years. A professional commercial real estate broker should be able to review a lease and make recommendations if needed to modify the lease. This is often done hand in hand with an attorney.
Have you ever dreamed of becoming a savvy real estate investor?
Hosted and presented by this area's industry experts, free slideshare will prepare you for the real estate, property management, mortgage, tax, and settlement expectations for investment property ownership.
Did you know:
You can make more money with less risk in long term real estate investment than in flipping homes?
Property management fees are tax deductible?
You need 2 years of landlord experience for rental income to be considered as cash flow for another property?
Less rent CAN be more return?
Learn more about these topics and the best ways to invest in residential real estate with this presentation, assembled by local area experts: Tommy Chambers, Vince Coyle, Tommy Trask, and Helen Krause.
The document discusses flexibility in office leasing terms for startup and growing companies. It notes that historically, leases focused on precise economic terms like rent and length, without flexibility. However, today's mobile workforce requires more flexibility to allow companies to easily expand, contract, or terminate leases as their needs change. The best deals for growing companies focus on flexibility through options like shorter lease terms, expansion rights, and termination clauses. Flexibility can be increased by minimizing construction costs during the lease negotiation.
The document discusses factors to consider when purchasing a rent roll from another property management company, including conducting due diligence on the rent roll's performance, properties, landlords, and staff. It provides tips for appraising the rent roll's value, obtaining financing, drafting protective contracts, and smoothly transitioning management responsibilities post-purchase.
Rent to own real estate strategy - turn dead lead to $ march 2012Thomas Wong
Thomas Wong, Lease Option Specialist of www.rtosc.com, presented the technique and strategy of rent to own. How this can help real estate agents to turn dead leads to $$?
Commercial Leases, Their Provisions and Pitfalls to Avoid (Series: Real Estat...Financial Poise
Like any other contract, the provisions of a commercial lease are negotiable. Yet, like so many contracts, commercial leases can be confusing to anyone who does not negotiate them for a living. This webinar explains many of the common provisions in a typical commercial lease (e.g. competition clauses, destruction/condemnation provisions, enforcement provisions, escalation clauses, purchase and renewal options, subletting and assignment provisions, use provision- just to name some examples) and discusses what is “market” with respect to them.
To listen to this webinar on-demand, go to: https://www.financialpoise.com/financial-poise-webinars/commercial-leases-their-provisions-and-pitfalls-to-avoid-2020/
[Era] cost reduction guide - issue 1 - property and premises costsManuel A. Velazquez
The document provides tips and advice for reducing non-core operating costs related to business property and premises. It discusses saving on energy costs through careful monitoring of energy markets and timing of contract renewals. It also discusses negotiating lease terms more favorably for tenants given current economic conditions, such as removing break clauses in return for rent reductions. Lastly, it discusses getting better value from suppliers through implementing performance measurement systems and centralized purchasing programs.
Cost Reduction Guide Issue 1 Property And Premises Costsymw15
This document provides a guide to reducing operating costs related to business property and premises. It discusses areas where large cost savings can be found, such as energy and utilities, legal/finance aspects of leases, and building/facilities management. Specific tips include carefully timing energy contract renewals, negotiating lease terms like rent reviews and break clauses, challenging property tax assessments, and consolidating suppliers to improve value. Implementing strategies like these can significantly reduce non-core property expenses.
REAL ESTATE LAW DUMBED DOWN 2022 - Representing the Commercial TenantFinancial Poise
A commercial tenant views a lease negotiation quite differently than does the landlord. As most leases tend to be drafted by the landlord, a tenant must begin an uphill battle to gain as many concessions as possible. This is an arduous task made easier by a full understanding of what are the most important issues for a tenant in a commercial lease transaction.
How does the financial profile of the tenant enter into the picture? Where can a tenant get hurt the most by hidden costs or unforeseen expenses? Why is “leverage” the most important concept to consider in this process? This webinar will help one understand how the tenant, generally the underdog in lease transactions, can turn the tables and become the most powerful player in the leasing game.
Part of the webinar series: REAL ESTATE LAW DUMBED DOWN 2022
See more at https://www.financialpoise.com/webinars/
Selasturkiye Real Estate Business Model By FnisZiya NISANOGLU
The document discusses how changes in the real estate industry, including the shift in leverage from brokers to agents resulting in declining broker profitability, have necessitated that brokers reevaluate and "remargin" their businesses. It describes current and emerging business models brokers can adopt, such as offering ancillary services or using different compensation structures for agents, to increase profit margins. The key is for brokers to change their business model in order to adapt to the new environment and remain profitable.
December 2009 - Office Tenant NewsletterBob Lowery
Houston's Office Tenant Representation Newsletter - December 2009
Contains: Information about Lease Audit Provisions
Capping Operating Expenses to the benefit of the tenant, economic charts, and weekly rewind via Robert Lowery's Blog
Similar to More Free Rent Leads To a Higher Rental Rate (20)
Selling your home can be easy. Our team helps make it happen.Eric B. Slifkin, PA
Why hire one realtor when you can hire a team for the exact cost? Our team ensures better service, communication, and efficiency, which can make all the difference in finding your perfect home or securing the right buyer. See how we market homes for sellers.
Signature Global TITANIUM SPR | 3.5 & 4.5BHK High rise Apartments in Gurgaonglobalsignature2022
Signature Global TITANIUM SPR launched a high rise apartments in Gurgaon . In this project Signature Global offers 3.5 & 4.5 BHK high rise Apartment at sector 71 Gurgaon SPR Road. Signature Global Titanium SPR is IGBC Gold certified, a testament to our commitment to sustainability.
🌟 Find Your Balance with Oree Reality
Happy International Yoga Day! 🌿 At Oree Reality, we believe in the harmony of mind, body, and home. Just as yoga brings balance and peace, finding the perfect home can do the same for your life.
Listing Turkey - Piyalepasa Istanbul CatalogListing Turkey
We are working around the clock to transform a long-time dream into reality. As a result, Piyalepasa Istanbul will be the largest privately developed urban regeneration project in Turkey.
THE NEIGHBORHOOD WE HAVE BEEN LONGING FOR IS COMING TO LIFE
The good old days of the Piyalepasa neighborhood are being brought back to life with Piyalepasa Istanbul houses, residences, offices, hotels and a pedestrianized shopping avenue.
The wide streets of this 82.000 square meter development conveniently face the main boulevard in a prime Beyoglu location. “Piyalepaşa İstanbul” stands out as the only project designed to offer a neighborhood lifestyle, complete with its grocers, bagel sellers and greengrocer. Piyalepasa Istanbul has all the values to make it an authentic neighborhood, our very own community.
A NEIGHBORHOOD FULL OF LIFE, IN THE HEART OF THE CITY!
“Piyalepaşa İstanbul” is a “mixed-use” concept containing all the elements for a vibrant social life with houses, residences, offices, hotels and high street shopping.
“Piyalepaşa İstanbul” will take the liveliness of Istanbul into its heart. The elegant sparkle of Nisantasi, the young and colorful Besiktas, the variety and multicultural heritage of Istiklal Street will all be contained within the streets of this neighborhood.
“Piyalepaşa İstanbul” bears traces of the most beautiful examples of Turkish architecture from the Seljuks to the Ottomans and from Anatolia to Rumelia. With its graded facades, wide eaves, bay windows, pools, and interior courtyard systems, it offers a new living space without disrupting the city’s silhouette and neighborhood.
“Piyalepaşa İstanbul” is the new attraction of this splendid city.
TO BE AT THE CENTER OF ISTANBUL… THIS IS REAL LUXURY!
With its proximity to D-100 highway, connecting roads and tunnels, “Piyalepaşa İstanbul” is only minutes away from Kabatas, Besiktas, the Golden Horn and Karakoy.
“Piyalepaşa İstanbul” is close to the prestigious new Istanbul Court House, a major hospital, the Perpa trade center and the city’s most lively neighborhoods. With its shuttle service to Okmeydani Metrobus station, Sishane and the Court House subway stations, “Piyalepaşa İstanbul” will provide you with the most convenient transport connections.
https://listingturkey.com/property/piyalepasa-istanbul/
Andhra Pradesh, known for its strategic location on the southeastern coast of India, has emerged as a key player in India’s industrial landscape. Over the decades, the state has witnessed significant growth across various sectors,
Expressways of India: A Comprehensive Guidenarinav14
India’s expressway network is a testament to the nation’s dedication to improving infrastructure and connectivity. These high-speed corridors facilitate seamless travel across vast distances, reducing travel time and fuel consumption
Anilesh Ahuja Pioneering a Paradigm Shift in Real Estate Success.pptxneilahuja668
Anilesh Ahuja journey is a testament to the power of vision, resilience, and unwavering determination. As a visionary leader, he continues to inspire and empower others to dream big and challenge the status quo. His legacy extends far beyond the realm of real estate, leaving an indelible mark on the industry and the world at large.
Why is Revit MEP Outsourcing considered an as good option for construction pr...MarsBIM1
Outsourcing MEP modeling services require effective collaboration and coordination amongst multiple engineering trades. The engineers and the designers often change the details of the MEP projects, but the work of Revit MEP drafting services is having the master plan and model of the complete project. To have proper coordination and installation, there is a need to execute the project effectively. Hence, the work of Revit family creation facilitates the MEP engineers.
Eco Green Builders in Sydney By Marvel HomesMarvel Homes
Marvel Homes is dedicated to revolutionizing the construction industry with cutting-edge, eco-friendly practices. We specialize in designing and building energy-efficient, sustainable homes and commercial spaces that minimize environmental impact. Our projects feature renewable energy solutions, superior insulation, and innovative green technologies. Committed to reducing carbon footprints, Eco Green Builders combines expertise, innovation, and a passion for sustainability to create spaces that are as environmentally responsible as they are beautifully crafted. Join us in building a greener, more sustainable future.
https://marvelhomes.com.au/our-services/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Gianluigi Torzi | Managing Director and Head of Capital MarketsGianluigi Torzi
Gianluigi Torzi is a prominent figure in the financial industry, known for his strategic leadership as Managing Director and Head of Capital Markets for the Middle East and Africa. Gianluigi Torzi extensive experience in investment banking equips him with the skills to navigate complex financial landscapes and deliver exceptional results for clients
36,778 sq. ft. building; Zoning: SE (Suburban Employment): The (SE) District allows numerous commercial site uses; Passenger elevator; Private and common restrooms; Fully sprinkled; Data center with a grounded floor and a specialized HVAC system; 60 KVA back-up generator; Building/pylon signage; Potential to purchase adjacent parcels; Sale Price: $4,413,360
Experience Premier Urban Lifestyle at Kohinoor Satori, Mahalungegraphicparadice786
Experience a harmonious blend of luxury and tranquility at Kohinoor Satori Apartments, situated in the rapidly developing locality of Mahalunge, Pune. These thoughtfully designed residences are crafted to offer a premium living experience, merging modern aesthetics with functional elegance.
Our mail-id-directsite369@gmail.com
Our Website- https://kohinoor.directsite.in/pune/kohinoor-satori-mahalunge/
Sunrise Infra Properties Company Profile Pradeep.pdf
More Free Rent Leads To a Higher Rental Rate
1. Mid-Atlantic Commercial Realty
Superior Tenant Representation
Your “Real Estate Advisor” in the Traditional Brokerage Role
February 2010 Volume 2, Number 1
New Leases Renewals Relocations Expansions Exit Strategies Subleasing
Market Notes More Free Rent Leads to a Higher Rental Rate
The 2009 year end Metro
Washington office vacancy rate
There are two primary reasons landlords offer so much free rent in a weak
increased to 13.8% from 11.2% at market. First, offering free rent allows the landlord to keep the rental rate and
2008 year end1.
Northern Virginia increased to
property value artificially high. Higher revenues increase the property’s net
14.8% from 12.9% operating income and the value of the property, all other variables remaining
Suburban Maryland increased
to 15.3% from 12.9% constant. Second, landlords need to lease space in a very weak and competitive
Washington DC increased to market to attract new tenants while retaining existing ones.
11.7% from 7.8%
1. Source: Cassidy Turley
Higher Rental Rates
2009 year end “asking” rental rates
are down between 3.0% and 5.0% Many of the office buildings in the DC area are owned by institutional investors
throughout the region from a year
ago while net effective rental rates who are focused on enhancing the value of their properties versus maximizing
(see article for definition) are down
10% to 20%. cash flow. These owners are required to internally value their properties
Lack of overall tenant demand in quarterly and annually through a formal appraisal. Higher property values better
2010 is projected to continue
downward pressure on rental rates position the property for sale in future years.
and upward pressure on
concession packages as vacancies
rise in the region
Landlords project property value increases using the simple “back of the napkin”
New vacant buildings opening
were the primary cause of valuation formula V = I ÷ R (V = Property Value. I = Net Operating Income. R =
increasing vacancy rates which
were partially offset by stronger 4th Capitalization Rate or “Cap Rate”). The Cap Rate is an individual investor’s
quarter 2009 leasing activity by the
Federal government and large required rate of return for an investment. As NOI increases and the Cap Rate
government contractors.
remains constant the property value increases.
These two sectors are also
projected to be growth catalysts in
2010.
Many landlords analyze the value of a new lease or a renewal for a building on a
Mid-Atlantic projects a slow and
bumpy crawl to an economic net effective basis. To simplify the analysis here we are not going to use the
recovery in 2010 and 2011 due to
the current lack of consumer and
discounted cash flow model and will exclude lease commissions. Let’s assume
business confidence and ongoing your company could negotiate a five year office lease with 5,000 square feet at
domestic and international debt
troubles and uncertainly. $30.00/SF with 3.0% annual escalations, a $25.00/SF tenant improvement
Landlords are being more
allowance and three months free rent. The three months free rent equals
aggressive to renew leases as
rental rates on new leases decline. $1.50/SF per year over the five year lease term. Tenant improvements equal
Tenants are renewing 12 to 24
months ahead of lease expiration. $25.00/SF or $5.00/SF per year. The net effective rent is $23.50/SF ($30.00/SF
Tenants should consider leasing - $1.50/SF - $5.00/SF). If no free rent is offered then the landlord would likely
from well capitalized and stable
owners to avoid the possibility of
2. losing their tenant improvement lease the space at a “minimum” of $28.50/SF ($23.50/SF + $5.00/SF) to achieve
allowance.
the same net effective rental rate.
You like your broker.
How do you really Over the five year term the escalated rental rates for the above “free rent” deal
know if your broker is and the “no free rent” deal are $33.77/SF and $32.08/SF, respectively. Using the
competent? valuation formula above, the property value will be higher for the “free rent” deal
Has it been over one year since
your broker contacted you? than the “no free rent” deal because revenues and therefore NOI would be
Your broker should be working projected to be higher after the three months free rent are burned off.
closely with you now as your real
estate advisor not just someone
who shows up to get a deal done,
collect a commission and move on. Competition
Has your broker recently talked to The second reason landlords offer so much free rent in a soft market is very
you about strategies and options to
reduce leasing costs? simple. Overall, there are fewer tenants in the market looking for space with an
Contact us to compare your abundance of options. Many tenants that would not necessarily relocate their
broker’s recommendations and
our recommendations for any of businesses may be attracted to a superior building at the same or lower rental
your leasing challenges.
rate which is referred to as a “flight to quality”. Tenants can negotiate high
Ask us for a courtesy review of
your lease to identify any tenant improvement allowances, significant free rent or a combination of the two
weaknesses:
to either offset or pay for moving, cabling and furniture costs. Landlords may
Recent deal terms: Rental rate,
free rent and tenant need to offer whatever level of free rent is necessary to be competitive and
improvements;
attract new tenants and retain existing ones. More importantly, landlords are
Risks that should have been
mitigated; highly motivated to prevent their buildings from foreclosure. Tenants should be
Rights that should have been negotiating several lease proposals simultaneously when either searching for
improved upon;
alternative locations or renewing a lease. Using one landlord’s proposal against
Obligations that should never
have been agreed to; others is not a new negotiating tactic. This strategy creates opportunities for
Non-rent related costs that
should be lower.
tenants to push landlords to be even more aggressive and competitive. Mid-
Atlantic Commercial Realty projects tenants will continue to have negotiating
Dana K. Weinberg leverage over landlords throughout 2010. Tenants are advised to explore
CEO & Founder
3745 Freehill Lane opportunities to reduce leasing costs even if the conclusion is to do nothing.
Fairfax, VA 22033
703.967.2771
dweinberg@midatlanticcr.com Combined Website & Blog:
http://www.midatlanticcommercialrealty.com
Learn all about leasing
Ask questions
Start a discussion
Post information
Email: dweinberg@midatlanticcr.com
If you wish to “unsubscribe” from this email please respond with “unsubscribe” in
the subject line.