196. Storm Brewing… CRE Issues May be Least of Concerns; Retail Extensions; Rental Rates 101
The TreppWire Podcast: A Commercial Real Estate Show
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The Difference Between Quoted Rents and Effective Rents for Offices
In a functioning market you can't use the contract in place rent. You probably don't want to look at sub lease rents and say we're going to cap that into perpetuity. And so for the last 10 years up until COVID and then let's work from home, landlord really has had the upper hand in those negotiations. So there hasn't been a huge economic most office operators when it comes to the leasing of their space. Now though it's it's some multiple of that I wouldn't be shocked if we're talking about a 10 year lease and break even isn't until year four.
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