Commercial Real Estate
Auction Data Suggests Sales are Increasing
May 16th
In June 2010, I analyzed CoStar Group (CoStar) data on industrial, office, retail and multi-family auction sales over a 17 month period. I recently reached out to our friends at CoStar to check out the recent 10 month period, July 2010 through April 2011. The research provided by CoStar reflects auction sales of only those properties listed with CoStar.
So, what has occurred since then? What sectors are hot? More >
Suits You Sir!
May 12th
In a week when Mervyn King, the Governor of the Bank of England forecasts slower UK growth and higher inflation, Office rents on one of London’s most famous streets, Savile Row are set to break through £100 per sq.ft once again.
US Hedge Fund York Capital Management are reported to have paid £97.50 per sq ft for offices at 23 Savile Row.
The wags delighting in pointing out that equates to almost twice the price per sq ft of a suit from a respectable tailor on the famous street. More >
NAI Global Chief Economist Warns of Inflation in Latest White Paper
May 5th
In his latest white paper, “Beware of Inflation”, NAI Global Chief Economist Dr. Peter Linneman questions how it is possible to not have inflation in the U.S. economy when healthcare and commodities prices are rapidly increasing and Federal and State governments are running record deficits. Dr. Linneman examines the impact of CPI increases, the Federal Reserve’s monetary policy, government deficits and other factors that will lead to massive inflation in the U.S. economy.
Cornerstones to International Expansion
May 4th
With an every expanding global marketplace, retailers are faced with the daunting task of embarking on network expansion beyond the U.S. borders. Whether it is into Canada, Mexico or China, there are five key cornerstones retailers need to understand in order to meet with a successful international presence. Each cornerstone is linked with the next, yet each possesses its own challenges. More >
How Gross is Your Lease?
Apr 29th
There are multiple ways to divide up the costs of leasing a property and of course every one of the alternatives is utilized somewhere. This discussion is about the most common types of arrangements for dividing up the expenses.
A typical property has components of rent, property taxes, insurance, maintenance, utilities and common area charges (CAM). So how does one divide the costs?
Single Net Lease- The tenant pays rent plus property taxes
Double Net Lease- The tenant pays rent, property taxes and insurance
Triple Net Lease- The tenant pays rent, insurance, and maintenance. (This is often confused with an absolute net lease.)
Absolute net lease- Tenant pays rent plus all expenses including insurance, maintenance, utilities and common area charges.
Modified Gross Lease- The tenant pays rent, CAM and utilities. The landlord pays the rest
Gross Lease- the tenant pays rent and the landlord pays the expenses
Full Service Lease- Tenant pays insurance, plus excess utilities actually used over a base amount and increases in expenses over a base year amount.
