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Alix Stuart's A Tale of Six Cities is a well-written article about considerations a CFO must make related to real estate and peripheral costs impacted by real estate, like cost of living. In the article, Alix identifies six major cities - 2 on the East Coast, 2 on the West Coast and 2 in the Central US - pairs of which account for three major points on the tenant/landlord power spectrum.
For any corporation occupying space in one of these markets, Alix's analysis of each market, paired with real-world examples and statistics, provides some insight into where the market is trending and whether it will continue to remain a financial opportunity... or hazard. One thing that I did find absent from the report, however, is whether the average rent per square foot is net or gross. I would imagine gross, but as we all know, it's a bad idea to assume.
As a little added bonus, the final page of the article comprises five tips for dealing with rent-hungry landlords. I particularly admire Jeff Klausner's wily strategy of negotiating an option to buy their single-tenant office building and then flipping the property for a $2 million profit - now that's unlocking hidden value.
