Case study early exit from an above market lease
Language: English Series: Journal of Corporate Real Estate ; 7(4) 2005, 300-305(6)Publication details: 2005Subject(s): Summary: Examines the unwinding of a lease obligation where the in-place rental rate exceeds that of the current market. Special reference is made to a case study of a 2003 transaction near San Jose, California to elaborate. It was discovered over a three year period of vacancy increases and rental declines, that the lease was a liability to a company with no projected need for the premises. Although the landlord had little incentive to settle the lease in these market conditions, they were keen to avoid further credit abrasion and therefore tested the market in a sales process. The design method involved examining some of the critical variables in mitigating lease obligations.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | L132695 (Browse shelf(Opens below)) | 1 | Available | 132695-1001 |
Examines the unwinding of a lease obligation where the in-place rental rate exceeds that of the current market. Special reference is made to a case study of a 2003 transaction near San Jose, California to elaborate. It was discovered over a three year period of vacancy increases and rental declines, that the lease was a liability to a company with no projected need for the premises. Although the landlord had little incentive to settle the lease in these market conditions, they were keen to avoid further credit abrasion and therefore tested the market in a sales process. The design method involved examining some of the critical variables in mitigating lease obligations.