Leases: what is the right term structure?

Article Abstract:

Real estate market conditions directly influence the costs of leasing office spaces. Thus, the duration of a lease should be evaluated from the value of the space as well as the demand for office spaces in the area. Developers are likely to increase prices on rents when demand exceeds supply, a cyclical phenomenon that is influenced by the location and tenant mix in the area. Some real estate markets show this cyclical change in prices every four years while others vary within a 10-year period, so that lease contracts should consider these factors before stipulating the lease duration.

Interpretation and construction, Building leases

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Office sector commands top billing among property investors

Article Abstract:

The third quarter report of the Commercial Investment Real Estate Institute and Landauer Associates for 1996 concludes that the demand for office properties exceeds all other property types in the commercial real estate market. Total sales for office transactions amounted to 21.3% of total transactions or about $1.1 billion. The deals were mostly initiated by foreign investors, limited partnerships, private investors, and real estate investment trusts with 58 property purchases that accounted for 80% of office sales or amounting to $847 million.

Finance, Reports, Marketing, Supply and demand, Statistics, Hospitality industry, Real estate investment trusts, Real estate limited partnerships

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How market opinion leaders view commercial office building investment opportunities in Chicago's CBD

Article Abstract:

The 1996 Market Opinion Survey by the Building Owners and Managers Association of Chicago shows an upsurge of investments in office buildings. The positive trend is expected to carry on in 1997 particularly with Chicago's investment grade buildings. The signs that point to a continued trend in the central business district include increased gross and net rents due to a decreasing inventory of office spaces and a declining vacancy rate, and rising market segmentation.

Surveys, Buildings and facilities, Chicago, Illinois, Commercial buildings, Illinois, Suburbs

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