We are witnessing more and more vacant commercial real estate space. How many office buildings or retail buildings with vacant space really have to be vacant? Too many asset managers expect to re-lease expired leases at the same or higher rent. This type of thinking is either the product of a masochistic, naive or foolish […]

The United States continues its predictable and inevitable slide into a recession. For more information on market cycles, please reference NetGain’s essay “Market Cycles and Income-Producing Real Estate.”
Highlights of the current U.S. economy:

The unemployment rate for October increased to 6.5% from the prior 6.1% rate for September
The Consumer Confidence Index for October is 38 (1985=100), […]

When executing a lease, the landlord has to ensure the lessee’s ability to meet the financial obligations of the lease.
Residential leases depend on three factors. (1) credit application, (2) credit report, and (3) a qualified interview.
Commercial leases are longer than residential leases and usually require much larger capital expenditures. Who or whatever the entity is, […]

Short-term leases enable the lessor to affect frequent rent changes. The result is short-term leases are a benefit to the lessor in a market with increasing rental rates and a detriment in a market with decreasing rental rates. Long-term leases secure the rental rate for an extended period of time. The result is long-term leases […]