GLOBAL HEALTHCARE SERVICES

NEWMARK KNIGHT FRANK

LEASE RENEWAL: OWNER’S DEBT IS A KEY FACTOR

It’s vital that tenants understand their landlord’s motivators, and one of the most important motivators goes far deeper than simply maximizing profit. Understanding and leveraging an owner’s debt timing can lead to significant cost reductions for tenants.


Building owners, particularly those who own large buildings, leverage debt. In the vast majority of cases, that debt’s interest rate is the single-most important determinant of profitability. If the rate goes up at loan renewal, costs increase and margins across all tenants are reduced. Conversely, a building filled with reliable tenants under long-term commitments can look forward to favorable rates at loan renewal and, thus, better profit margins. The reason for the rate differences is obvious – a building’s risk to the lender is reduced, leading to better credit terms…


Read full article here.


Written by GHS member John Cobb. John specializes in healthcare and technology tenant/buyer and seller representation. His personal blog is www.healthtechre.com.

All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Knight Frank has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark Knight Frank. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark Knight Frank, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

Download Our
Brochure

Sign Up for Our Newsletter

COVID-19 HeaTHCARE REAL ESTATE UPDATE