The New York "twin towers" site has been approved for development of 5 new towers that will contain a total of 10MM square feet of office and retail space. As Winston Chruchill said: "Never Give Up! Never! Never, Give Up!"
A recent study by the Building Owners and Managers Association (BOMA) finds that real estate taxes are very high in Chicago--in fact the highest of any US city. The study, which examined taxes from 1994 to 2004 found that Windy City building owners pay 25% of their income in real estate taxes, nearly twice that of New York and Dallas, and triple Los Angeles. Tenants and developers catch on pretty fast.
What if you could find the investment property you need while completing a round of golf with your Thursday foursome? What if the locations you prefer for your next investment property were being searched for upside growth investments as you fished off Nantucket Island? What if the due diligence contract data for your 1031 upside was carefully reviewed whlie you were on vacation in London? What if......well, you get the idea. Just thinking....
While Katrina reduced the New Orleans office market by nearly 8% to just under 9 million square feet, this has resulted in higher lease rates and fewer vacancies. REIS, Inc. reports that as supply shrinks, demand is increasing. Approximately 128,000 square feet of space was absorbed in 2Q and this has bumped the N.O. occupancy rate from 86% to 90%. Rental rates increased to $16.23 during 2Q, from $15.46 per SF pre-Katrina rates -- a strong testimony for the resilience of the office sector!
A recent article by D. P. Snyder, JD in Commercial Investment Rea Estate suggested ways to use a master lease or leases to build the lease income stream in investment property. The primary purpose of the Master Lease is to provide the necessary income stream to support financing of the property. Some of the common Master Lease structures include: --the master tenant leases the entire project and subleases space to occupying tenants; --the master tenant leases specific vacant space only, and the master lease terminates when space is later lesaed to occupying tenants; --the master lease covers only the vacant space in the project from time to time, floating to coincide with actual vacant space; --the master lease applies to specific space covered by a lease with an upcoming expiration and takes effect only if that lease is not renewed or the space re-leased: and, --the master lease only covers space duringt a recent abatement period when the occupying tenant pays no rent. Creative financing leverage for investment targets that may appear difficult to finance.