Message from Brian Parrish, MBA, SIOR | President & CEO
– FEATURED LISTING –
High-Tech Manufacturing Facility FOR LEASE
300,000 – 800,000 SF Build-to-Suit Industrial Space
LEASE ACCOUNTING CHANGES & THE IMPACT ON COMMERCIAL REAL ESTATE
Issued in 2016, new lease standards now take effect that supersedes and replaces all prior standards and impact all companies*.
What YOU need to KNOW:
– All leases are reported on the balance sheet.
– Entities to record a lease liability for all future noncancelable lease payments.
– Financing leases and Operating leases are separated out.
More information on lease accounting changes can be found at the FASB (Financial Accounting Standards Board) website here.
What YOU need to DO:
1) Take a lease inventory and gather relevant documentation.
2) Look forward and consider the impact of lease accounting while entering into new agreements.
3) Review loan covenants right NOW with your lenders and/or agents.
4) Determine the discount factor for the Present Value of Lease Payments – the new standards provide guidance.
5) Work with your accountant!
* One exception – short term leases of 12 months or less do not need to adopt these new standards.
PARADIGM Real Estate represented RTM Management Corp. in the sale of a 17,000 SF industrial facility at 8888 West Tower Avenue in Milwaukee to 8888 Tower LLC. The Buyer intends to renovate the building and lease it to an undisclosed tenant.
PARADIGM Real Estate represented OLG Properties LLC in the purchase of a 12,911 SF office building on 0.94 acres from Glen Oaks Partners, LLC. The building is located at 1251 West Glen Oaks Lane in Mequon, Wisconsin and will be occupied by O’Leary-Guth Law Office, S.C.
The deadline to apply for a Main Street Bounceback Grant has been extended to December 31, 2022. Grants will be awarded on a first-come, first-served basis until all the funds are disbursed. Businesses must apply through the partner organization for the region in which they are located.
The program is open to new or existing businesses opening a new location or expanding operations in a vacant commercial property where the lease commences, or sales contract closes, on or after January 1, 2021 and on or before December 31, 2022.
Additional information about the Main Street Bounce Back Grants is available here: https://wedc.org/programs-and-resources/mainstreet-bounceback-grants/.
Tell PARADIGM Your Commercial Real Estate Requirements:
Looking for a PARADIGM Shift???
Contact PARADIGM Real Estate Today for:
* Complimentary Broker Opinion of Value
* Sale-leaseback analysis
* Sale or lease representation
PARADIGM specializes in the sale and lease of industrial and investment real estate in Wisconsin since 2013.