The exposure draft, the latest revision to a proposal first released in 2010 that resulted in widespread complaints and dire predictions by CRE groups and other business interests about the effect of the changes on real estate markets and the economy, requests that public comments on the latest proposal be submitted by Sept. 13. The revised draft continues to require a lessee to recognize assets and liabilities as rights and obligations created by a lease, but it modifies the way of determining expense recognition and other reporting requirements introduced in the original draft. Real estate landlords and tenants will have to recognize rental income on their balance sheets on a straight-line basis, with costs recognized evenly over the term of the lease. Costs of leasing equipment or other items, by contrast, will be weighted more heavily in the early years of a lease.Click here for more...
'Smart Growth' Communities Generate More Tax Revenue than Conventional Suburbs
5/29/2013, Baltimore Business Journal, Marc Stiles Smart growth or transit-oriented developments generate 10 times more tax revenue per acre than conventional suburban development, according to a new analysis from Smart Growth America. By building dense, walkable communities - such as Metro Centre, which is under construction in Owings Mills - governments can save money upfront and in the long run, according to Smart Growth America, a national group that promotes smart growth. The cost savings come from building and operating infrastructure, such as water mains and streets lights, to serve more people in smaller, more compact areas. Over the years, cities have compared the costs and benefits of different development scenarios, and there's near universal agreement among these studies that smart growth benefits public finances, according to Smart Growth America. Click here for more...
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As the office recovery continues, developers are once again beginning to take a closer look at construction. Of course, analyzing individual market supply and demand trends to justify new development is important. One type of analysis that can provide additional insight is looking at the relationship between available large blocks of space (greater than 100,000 square feet) and largetenant occupancy among different markets.
Markets with a limited availability of large office blocks relative to demand could be ripe for development, as signing a large tenant is often the key to securing financing. Surprisingly, more secondary markets are starting to show up as candidates for this development strategy, including Columbus and Minneapolis, which have a dearth of large blocks of available space. Tech markets such as Denver, Austin, and San Jose also appear to be strong candidates for development, though these markets are already starting to experience an uptick in construction. Click here for more...
agencies to use less space and rid themselves of excess properties. It also ties into a "Freeze the Footprint" mandate issued by the Office of Management and Budget prohibiting agencies from expanding their space and requiring them to submit plans for how they will better manage their real estate. Click here for more...
Both Loners and Extroverts will be Productive in the 'Office of the Future'
6/4/2013, Business Insider, Vivian Giang With big companies like Apple and Google redesigning their headquarters, there's a lot of talk about office design. They're trying to find ways to have the introvert and the extrovert (and the CEO) all walk into an office and be totally at ease and in their comfort zones. For companies to get the most productivity out of their workers, they need to be able to provide a workplace design the promotes both focused and collaborative work, but most companies today are more focused on the more popular open-plan offices and forget that private spaces are also needed. To find the best office design, companies need to understand their end goal and what works best for their teams by thinking about the demographics of the majority of their staff, the culture implemented, whether collaboration or focus work is needed, and the power structure at their organizations. Click here for more... Click here to download a printable version
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