The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
One of the biggest changes coming to commercial real estate will have to do with accountancy. Corporations will be accounting leases as if they’re mortgages, providing more leasing options that can wind up being quite profitable in the long-term. One year leases instead of 10 year leases can allow for more rent to be charged and more opportunity for both owners and tenants. Additionally, rents, tenants, and buildings are expected to continue to grow in the coming years.
Richard Wilson: Just two questions left here, so what do you see as the number one biggest change coming to commercial real estate?
Robert Borris: Well one of the biggest changes is going to be accounting changes. The board of accountancy is announcing, and I don’t know the status of …