The final FASB (GAAP) Lease Accounting Standard was released today. It has been a long time (2006) since the IASB and FASB (IFRS) endeavored to increase transparency and consistency in accounting standards.  Ultimately the two bodies did not agree on everything and there are still two standards, but they are much more similar than before. Additionally,...Read More

Happy New Year!  The time has come again, the time for setting resolutions to get to the gym more often, eat healthier, and overall get in shape. But have you spent any time thinking about your business resolutions, and how to keep your business in shape?  Here is a list of real estate resolutions for...Read More

Has the business cycle run its course, or does it have legs for a few more years? Has the stock market peaked again? What about commercial Real Estate?  Is it different this time?  What might derail the market this time?  Is it the shift of private debt to national debt?  Will it be the raising of interest rates...Read More

Most every commercial lease contains a provision requiring both the tenant and the landlord to buy insurance.  Typically, several forms of insurance are required, including Commercial General Liability, Physical Damage, Workers Compensation, and Business Interruption (rental loss for landlords). The most often negotiated components of the insurance provision regards the actual limits of liability and the amount of the...Read More

As a tenant rep I have to take a pretty hard line on landlords to ensure my clients get a good deal and that the “benefit of the bargain” is properly documented in the lease.  But it is important to note that the relationship between the landlord and tenant is a long term one, and nurturing that...Read More

Personally, I think we are getting close to the top (ie: end) of the real estate cycle.  Over Easter weekend I was talking to some family and friends that are active in the real estate industry and noticed a few catch phrases like “it’s different this time,” “this location has no downside,” and “there is...Read More

If you have been following the ongoing joint efforts of the FASB and IASB (IFRS) to converge and change lease accounting standards, it has been a long road.  Globalization, the financial crises and several bad actors, like Enron, brought the two boards together to change accounting methods for more consistency, transparency and reliability.   Two years after...Read More

One of the primary considerations of any lease is the length of the Lease Term.  Sometimes flexibility requires a very short lease, and sometimes a lease needs to be longer to amortize a significant tenant improvement investment.  So, how long of a lease term should you sign up for?  There are quite a few factors to...Read More

Sale-Leasebacks, in real estate, are financial transactions whereby an owner of real estate sells its property and then leases it back for a long term.  These transactions have been popular for decades and are a consistent form of financing for businesses.  The question is: Is a Sale-Leaseback right for you? Sale-Leasebacks are not the right solution...Read More

A good friend of mine, Ed Harris at CTS, recently wrote an article about occurrences that signal the need to review, or audit, your lease.  I have edited his writing to shrink his well thought out arguments down to a blog format focused on this huge area of cost containment for tenants.   The Red Flags are: 1. Significant...Read More