Colliers Integrated Real Estate Solutions - Real Estate Strategic Advisory Services, Investment Sales, Structured Real Estate Finance

Most government agencies or public institutions today are facing the constant challenge of managing facilities and infrastructure in an environment of limited fiscal resources.

To the extent that government agencies require new, standalone or single tenant facilities, they can be efficiently and competitively procured from private developers/investors on a Build-to-Lease (BTL) basis. Excellent credit quality and sophisticated use of innovative lease provisions are among the key characteristics which allow for efficient underwriting and project financing by private lending institutions. Substantial value stemming from certain inherent advantages possessed by government agencies when competitively sourcing new facilities from private developers/investors can best be harvested for the government agency’s benefit through application of a focused, end-to-end procurement process. The bottom line result is the acquisition of leased facilities at wholesale rather than retail lease rates. This article discusses the features and benefits of the BTL Competitive Procurement Process jointly developed by Colliers’ Integrated Real Estate Solutions Group and the Knighthorse Corporation (IRES / Knighthorse).

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For more information about this article, please contact:

Darrin Kennedy
IRES Managing Director
865 S. Figueroa St., Suite 3500
Los Angeles, CA 90017
213.861.3323
darrin.kennedy@colliers.com

Joseph Faccone
Knighthorse President
3 Bethesda Metro Center
Bethesda, MD 20814
202.412.2535
jf@knighthorse.net

We all recognize the almost predictable cyclical nature of economic markets, and in times of
unbridled prosperity such as those recently experienced, we tend to ignore the signals of
impending correction. Today, it is more expensive to run a company. People, energy and
technology, which change with regularity, are more expensive, and unforeseen competition can
undermine sales at any moment. Simultaneously, the seemingly limitless stores of capital
markets resources have all but vaporized, while cash flow and earnings pressures continue to
mount. Whether your firm is a publicly traded company or privately held, it will be under
tremendous pressure to perform. Companies are required to achieve immediate and sustained
earnings, in a tough, fiercely competitive and often uncertain environment, where change occurs
with unsettling regularity. Companies committed not just to survive, but to prosper in a
reduced-resource environment, will be characterized by the quality and timeliness of the many
decisions they will be required to make. One such critical decision is assuring that corporate
capital is positioned efficiently to provide the highest yield for core business activities, while
minimizing its impact on the balance sheet and continuing to support operational demands….

Click here to download the PDF and read the full article.

For more information about this article, please contact:

Bret Hardy, CPA
IRES Managing Director
865 S. Figueroa St., Suite 3500
Los Angeles, CA 90017
213.861.3321
bret.hardy@colliers.com

Wilma Warshak, SIOR
Senior Vice President
601 Union St., Suite 5300
Seattle, WA 98101-4045
206.409.1432
wilma.warshak@colliers.com

Over twenty years ago, the US experienced a capital gains situation similar to the one anticipated to occur two years from now, in 2011.  In 1986, the long-term capital gains tax rate was increased from 20% to 28%, an increase of 40%.  Investors, anticipating this occurrence, reacted in 1985 by selling off properties. The result was an approximate 80% increase in capital gains tax revenue that year. Due to the abundance of supply over demand, prices for commercial real estate were driven lower.  It is our opinion that if capital gains tax rates increase in 2011, history may once again repeat itself in 2009-2010…

Click here to download the PDF and read the full article. 

For more information about this article, please contact:

Bret Hardy, CPA
IRES Managing Director
865 S. Figueroa St., Suite 3500
Los Angeles, CA 90017
213.861.3321
bret.hardy@colliers.com

Wilma Warshak, SIOR
Senior Vice President
601 Union St., Suite 5300
Seattle, WA  98101-4045
206.409.1432
wilma.warshak@colliers.com