Chapt 23 - market rents estimated as well as renewal time...

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Garrett Barnes Chapt 23 4,5,8,11 4. Prestige of the space, the top floor, exclusive floor occupancy, naming the building for the tenant, access to employees’ homes, good restaurants, the airport, and clients. 5. Credit risk, potential for future growth and expansion, parking requirements, image. 8. The tenant improvements must be amortized or recouped over the term of the lease unless they are very generic and required by all future tenants. More TI means a higher rental rate on the base rent. 11. Each lease and tenant should be analyzed and projected out,
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Unformatted text preview: market rents estimated as well as renewal time and future vacancy, and summed together each year to produce an expected rental collection. Each operating expense paid by the landlord should be estimated along with reasonable reserves for equipment and roof replacement. This requires estimates from the history of the property, service providers, property managers, insurance companies, and utility companies. Peer properties also provide a good basis upon which to compare estimates and assumptions....
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