real estate Archives

May 5, 2021

Avoiding the Most Common Mistake Tenants Make When Renewing a Commercial Lease

Many tenants think renewing a commercial lease or exercising a pre-existing and pre-negotiated option to expand or extend is an easy process that can be handled without the involvement of a lawyer. It’s not. Oftentimes a landlord is more willing to give legal or financial benefits to a new tenant and not offer these same benefits to an existing tenant. An existing tenant often feels that they have been a “good” tenant (i.e., paying on time, not making complaints, etc.) and that the landlord will take this into account and offer them the same incentives it would offer to a… Read more

Nov 18, 2020

Real Estate Investors Increasingly Considering Climate Risk in Investment Models

According to a report from the Urban Land Institute, real estate investors and developers are increasingly considering climate risk factors when deciding where to buy or build. One major component of this analyses is looking at how prepared local governments are to face such climate change events. According to the report, investors are looking beyond the individual assets and assessing a city’s preparedness for climate change, but the models and metrics they need are still in their infancy. The growing concern among real estate professionals is shared by many in the broader investment community as well. In July, nonprofits, pension… Read more

Jan 22, 2019

Final Pass-Through Deduction Rules Grant Welcome Relief for Rental Real Estate Activities

On Friday, January 18, 2019, the Treasury Department issued final rules under IRC Section 199A. As part of this regulation package, Treasury also provided much-needed relief and clarity for rental real estate activities. This development creates some hope that similar rules may be in store for Opportunity Zone Funds. Background IRS Section 199A is a tax incentive for pass-through entities and sole proprietorships. It effectively reduces the federal tax rate on income arising from certain activities by as much as 20%. Thus, if income from an activity qualifies, a taxpayer who would otherwise pay taxes at the current top federal… Read more