Nick specializes in regional planning and development.
Commercial real estate leases are complicated. Two buildings may have the same monthly rent but vastly different moving costs, operating expenses, and public financing options. Real estate brokers have access to large databases of property vacancies, but few tools to help compare the value of leases.
A real estate broker asked ECONorthwest to help convert the data into a format that their clients could easily understand.
ECONorthwest developed and currently maintains a comprehensive and flexible commercial real estate lease agreement evaluation model. The model calculates cash flows and net present values, and compares prospective lease agreements from the perspectives of both the landlord and the tenant. The model accounts for rent, tenant improvements, moving costs, realty commissions, operating expenses, property taxes, and public financing options--such as new market tax credits, historic tax credits, and enterprise zones, among others.