Commercial Real Estate Offering 8%-9% Cap Rates, Anyone Interested? [View article]
Rents are determined by a percentage of what you take in....Its one of your biggest expenses...The larger the company, the more space, etc... means more rent...usually... Being such, as companies revenues drop, or new ones sign new leases at newer lower rates(of course, everyone can see all the space for lease signs, no one cares what the owners property taxes are..etc...) then you have less income. In fact, compounded, you have a lot less income...Failures...Pr... taxes on properties going up too..not down...Ironically... REITS are screwed basically....They need a bailout...But were do you draw the line? We will need to bail out everything at some point...Getting a bit ridiculous...Im sure the elite commerical banks can move into the market being vacated by smaller companies..
Commercial Real Estate Offering 8%-9% Cap Rates, Anyone Interested? [View article]
Being such, as companies revenues drop, or new ones sign new leases at newer lower rates(of course, everyone can see all the space for lease signs, no one cares what the owners property taxes are..etc...) then you have less income. In fact, compounded, you have a lot less income...Failures...Pr... taxes on properties going up too..not down...Ironically...
REITS are screwed basically....They need a bailout...But were do you draw the line? We will need to bail out everything at some point...Getting a bit ridiculous...Im sure the elite commerical banks can move into the market being vacated by smaller companies..