In this issue
- The CPI Escalation Rental Clause
- The Industrial Flex Building Investment
- The Conversion Of A Railroad Station
- Raw Land For Development
- The Single Tenant Market
Putting a CPI (Consumer Price Index) escalation clause in a lease is to make the lease fair to both the tenant and the property owner. A primary benefit of escalation clauses is they help protect against diminishing purchasing power related to inflation. The CPI measures monthly the average change in the prices consumers pay for certain goods and services such as oil and gas, healthcare, food, and housing…..(more)
A high percentage of speculative low-rise industrial buildings today are flex buildings making them a good investment. One of the most appealing aspects of flex space lies within its customizability. For example, if a tenant wants to increase their office space or warehouse space, they are easily able to do that with flex space due to the reduced improvement costs. A flex building also allows for the tenant to have more choices in the type of space their company needs now and in the future at a more affordable price. Developers are favorable toward the flex building as it will meet the needs of many modern sophisticated industrial building users…….(more)
In many areas of the country, railroad stations are being re-awakened and brought back to a beautiful new life. The small town railroad station which had been closed down, boarded up and left to crumble into dust for many years is now being converted to a useful and desirable part of town. The large abandoned terminals which were once the busiest and most accessible buildings in a city are no longer deserted and deteriorating but have been converted to shopping centers, entertainment venues, and hotels. Stations along commuter lines in smaller towns are being used for small cafes, coffee shops, a flower shop and an assorted businesses to take care of the needs of the commuter…..(more)
Land investment is much more complex than it was a few years ago. Because of expanded regulation and environmental concerns, the development process is much longer and so more expensive. The time from the initial raw land purchase until final sale of completed homes may be as long as 10 years…..(more)
Investors who can provide the housing that satisfies the needs of the single tenant will stand to profit. We all know that the number of persons living alone has increased. Figures from the census bureau show that households that contain only one person have increased 90% since 1970. There are now more than 20 million people who live alone, more than twice the number of twenty years ago. This trend is expected to continue…..(more)
