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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (131271)	2/1/2001 2:29:56 PM
From: tejek	Read Replies (1) \| Respond to of 1570353

Does it include TI and is the lease triple net? I have no idea what these terms mean. If you can explain, I would appreciate it. Joe, TI stands for tenant improvements...it concerns the buildout of space to suit the particular needs of the tenant. How that buildout is paid for is critical in determining the fair value of a lease. Depending on the market, the landlord or the tenant or both may be responsible for the cost. If the tenant is paying, the cost could be tacked onto the lease, making the annual lease cost look greater than it actually is. In the kind of commercial market we are in right now, typically the tenant is paying for the buildout. Triple Net is the pass thru of certain operating expenses from the landlord to the tenant..insurance, real state taxes, utilities. If he has a Triple Net lease, then it makes what he is paying more expensive but if his lease is in lieu of a Triple Net, then what he is paying may be deemed reasonable. In this market, a tight one that favors the landlord, a Triple Net lease is pretty standard. My point is that knowing the annual cost of a lease and the square footage is not enough in making a determination of the value of that lease. A normal office is something like Sen. Mynihan's office I visited once. It was in an average office building in Midtown (no view of Central Park, which adds $10 to $20 pr sf). It was very modest, and the message a visitor gets is that he does not waste taxpayers' money, which to me is more impressive than a stunning view from Clinton's new office. He is no longer a public/elected official...he is in the private sector now. There are a different set of standards in play. ted