Send Article via Email

The Square Feet Commercial Real Estate Blog has a post on a new lease signed in San Jose for 188 thousand square feet: (ht Eric) 10-Year Term September 1, 2010 commencement 2-Years Free Rent $1.90 NNN start (year 3), with $.10 annual bumps (CR update: Monthly rent) $100 PSF Tenant Improvement dollars (over shell) Right to cancel after 7 years Talk about a low effective rent. Not only is the tenant getting two years free rent, but the tenant improvements are about 4 years of rent (the lease is triple net, so the tenant is also paying taxes, insurance and maintenance). And the tenant can cancel after 7 years ... the landlord is mostly just covering expenses. To review - at the end of Q3, Reis reported the national office vacancy rate rose to 16.5% in Q3 from 15.9% in Q2. We should have the Q4

More from MND:

• MBS Commentary: MBS RECAP: Uneventful Session, MARKETS CLOSED MONDAY
• Mortgage Rate Watch: Mortgage Rates Reverse Course Every Day This Week, But Stay Near Lows
• MBS Commentary: MBS MID-DAY: Dying Down Ahead Of Long Weekend
• MND NewsWire: Federal Reserve Releases Action Plans for Two Loan Servicers
• MND NewsWire: Fannie and Freddie: "Where the Money Went."

If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.