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Article: Landlords stretch square footage; Growing use of `loss factors' pumps up rents; statistically absurd.(landlord-tenant relations)
- Article from:
- Crain's New York Business
- Article date:
- May 15, 2006
- Author:
CopyrightCOPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Fran Hawthorne
Only in new york.
Two years ago, a Japanese cosmetics company began talks to renew its lease for 14,500 square feet of office space on Manhattan's Third Avenue. Over the following eight months, the amount of space under negotiation grew first to 15,000 square feet and finally to 16,300 square feet.
"The tenant never moved, and the floor never changed,'' says John Maher, the executive vice president at CB Richard Ellis representing the tenant, which he declined to identify.
What's the difference?
what did change was the loss factor, New York landlords' term for an arcane formula referring to the ...