Reducing the cyclical volatility of real estate development
Article Abstract:
Trillion-dollar losses from real estate markets could be prevented through several methods. Public corporations can develop and own real estate assets instead of investors uninterested in long-term economic effects of real estate developments. Long-term ownership could be encouraged through tax surcharges on developments sold over short time periods. Tax and financial incentives for real estate construction should be eliminated. Nationwide banking could foster development of large real estate companies instead of individual investors.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1993
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Riskless benefits from longer lease terms
Article Abstract:
Corporate real estate executives can control and reduce occupancy costs for long-term leases by negotiating 10-year or 5-year lease terms with cancellation options for offices of more than 5,000 sq ft and all properties with more than 20,000 sq ft. Short-term leases reduce tenant's bargaining options for free rent and office improvements. The real estate industry will often lower rents with long-term leases and require cancellation penalties that equal savings incurred by deflated rents.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1993
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Inflation, the depreciation tax shelter, and reinvestment
Article Abstract:
The depreciation tax shelter and inflation can significantly influence reinvestment decisions. Tax depreciation allowances reinvested at a sufficient rate of return can provide funds for investments in new properties. Changes in federal tax policy and anticipated inflation can make reinvestment alternatives more attractive or less attractive.
Publication Name: Real Estate Review
Subject: Real estate industry
ISSN: 0034-0790
Year: 1993
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