Articles on large lease portfolios for corporate occupiers.
Large corporate occupiers have portfolios that represent a significant percentage of their expense base. Could one apply the tools used by portfolio managers to optimize lease portfolios in terms of cost and risk?
Does a portfolio of office leases have properties in common with a bond portfolio? This article argues “yes” and examines some bond math to see if duration and related calculations add insights for CRE.
Forecasting the growth rate of an organization’s headcount is sufficiently difficult that real estate strategy is frequently constructed on the basis of flat growth or simple compounded growth models. By ignoring this issue or the arguments that might stem from constructing a more sophisticated model we are assured of only one thing: our forecasts will be uninformed and potentially dangerous. This paper examines the statistical properties of headcount growth data and argues for a more rigorous approach based on stable distributions and Monte Carlo simulation.