WHEN IT COMES TO YOUR OFFICE SPACE, IS IT REALLY BEST TO JUST “STAY PUT”?

In the last few years we’ve helped our clients renew their office leases more often than we’ve helped them acquire new office leases.  Why, you ask?  Some of our clients have thought it too risky to move to another location and commit to a longer lease, complete a full interior build out, and interrupt their business operations; others have simply opted for the path of least resistance at a time of great uncertainty about the future. Some have found themselves with reduced credit capacity, which has made acquiring new office space and posting a Letter of Credit difficult or impossible. Others have simply not had the mental capacity or human capital to think long term about their business, brand, and talent needs.

BUT, IT’S EASY.

The landlord has made these types of transactions relatively easy and attractive to these tenants by crafting, in partnership with the tenant’s professional, “blend and extend” solutions.  “Blend and extend,” as it’s known in the office leasing market, is the name given to the process by which a landlord renews a tenant with unexpired term on their lease by blending the unexpired term with the new term.  The tenant is happy because they …

Read more...

This entry was posted in Commercial Real Estate, Landlord Financial Issues, Lease Renewals, Tenant Representation, Workplace Strategy. Bookmark the permalink. |

US GOVERNMENT REPORTS FINANCING FRAUD IN COMMERCIAL REAL ESTATE

A recent report released from The Financial Crimes Enforcement Network, a part of the US Department of Treasury, outlines the rising amount of suspicious activities in the Commercial Real Estate Industry.  Between 2007 and 2010, the amount of Suspicious Activity Reports (SARs) regarding Commercial Real Estate financing fraud nearly tripled. The top 4 categories for these frauds were: false documents, misappropriation of funds, collusion-bank insider, and false statements.  And, the top 5 locations of the reported subjects were: Georgia, Illinois, Florida, New York and California. In the last few years, commercial rents and occupancy rates have fallen and commercial loan defaults have risen. An estimated $1.4 trillion in Commercial Real Estate loans will reach the end of their terms by 2014. As financial institutions fear more loan defaults, they will be keeping a keen eye out for these kinds of suspicious activities.

Read more...

This entry was posted in Commercial Real Estate, Landlord Financial Issues and tagged , , . Bookmark the permalink. |