March 11, 2010
Lucernex Commercial Brokerage expert and Account Executive Cinnamon Trimmer discussed how some Tenant Rep brokers are surviving the current economy.
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Recently I had very good conversation with an old brokerage buddy in California, Jack. He was really freaking out that his real estate career was heading in directions he was not prepared for. See he’s been a “Tenant Rep” for 20 plus years and now is competing for Landlord Rep and Sublease deals just to make ends meet!
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February 21, 2010
Lucernex expert Jim Duport (see Jim’s management summary here) discusses GAAP sublease accounting.
Our interpretation of GAAP sublease analysis according to FASB accounting rules is as follows:
Overview: Start by determining the net present value of all rental costs including write-offs of depreciation and subleasing costs, offset by the sublease income (the NPV write-off). The Income Statement (Profit & Loss statement) is then charged the NPV write-off and it is charged an interest expense based on a declining balance of the NPV write-off, the accretion interest expense. The declining balance is determined by taking the net monthly costs (including sublease income) and the interest expense and deducting that cost from the NPV write-off.