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Second Quarter Market Report Released

Posted: July 29th, 2010 | Author: | Filed under: Leasing, Trends | Tags: , , , , , | No Comments »

We have released our quarterly market report for the Silicon Valley medical office market. Vacancy rates remain fairly steady, slipping from 7.82% from 7.51%. Rental rates went from $2.55 gross in the previous quarter to $2.39 gross. Despite the up-tick, the medical market continues to benefit from far better fundamentals than the generic office and R&D market which are suffering from historically high vacancy rates. Even the most seasoned office landlords we know feel less optimistic about the future than at anytime they did before in Silicon Valley when the market slumped.

We also continued to add properties to our database, and we now track over 375 buildings.

If you would like to receive the full quarterly report, sign-up on our website to receive it, and you’ll also receive next quarters report when the time comes around.


Healthcare Bill Levies 3.8 Percent Tax on Rents

Posted: March 31st, 2010 | Author: | Filed under: Investment, Leasing | Tags: , , , , | No Comments »

One component of the Healthcare Bill that was passed is a new Medicare tax on investment income. Designed to help offset the cost of the overhaul of the healthcare system, a new tax of 3.8% is levied on investment income for individuals reporting more than $200,000 in income, and joint filers earning reporting more than $250,000. The tax will start in 2013, but the far-reaching definition of income is what should catch the attention of both landlords and tenants. Under the bill, investment income includes interest, dividends, annuities, royalties, capital gains, and rents.

Given the timetable for the tax, both landlords and tenants should be aware of the impact this tax could have on their rent, term, and operating expense provisions of their lease.