From noss1233 at gmail.com Wed Aug 22 10:56:37 2007 From: noss1233 at gmail.com (Tommy Lee) Date: Wed, 22 Aug 2007 11:56:37 +0300 Subject: [MPlayer-G2-dev] NUMBER ONE Success System Message-ID: http://www.noss123.com/ For some properties, it is important to consider the initial annual return. But for other properties, it is more appropriate to consider the *stabilized return* ? ones that are either not well leased, have leases that are about to expire or are candidates for conversion to other uses. The stabilized yield is determined by calculating a projected yield after the building's performance has been maximized. Properties can have various types of *leases.* A traditional office lease is considered a *gross lease* ? meaning the property owner is responsible for virtually all costs related to the leased space, ranging from taxes and insurance to water and power costs. By contrast, some office tenants, and most industrial and retail tenants, pay a *net lease.* In such a scenario, the tenant is responsible for the costs related to the space. Depending on how many of the costs are assumed by the tenant, a lease may be considered single-net, double-net or triple-net. The charges and payments of building expenses are also known as *Common Area Maintenance (CAM)* expenses. In a typical net-lease, the tenant shall reimburse the landlord for all expenses related to the maintenance of the property such as cleaning, gardening, snow-removal, lobby, lights and the like. In a double-net lease, the tenant also required to cover insurances, accounting, and certain legal expenses incurred by the landlord. In a triple-net lease, the tenant is also responsible for property taxes and certain improvements of the leased property. The difference in rates of the various types of leases can be great. An office space could conceivably be advertised as having an annual rent of $50 per square foot as a gross lease, and $35 per square foot (annually) if the lease is triple-net. Some property owners prefer to deal only with *credit tenants* (see example), which have investment-grade credit ratings, as rated by a third-party agency such as Moody's, Standard & Poor's and Fitch. Any rating above BBB-minus is considered investment grade. Properties with investment-grade tenants are often considered more valuable by investors. *By entering the Site Password and clicking the "I ACCEPT" button you hereby agree to the terms contained herein, and may* enter*.*