Corporate Real Estate Activity
Article Abstract:
In the past, corporations have often viewed their real estate holdings more like a piece of equipment than like the valuable asset that real estate truly is. But, the outstanding performance of real estate compared to other equities during the past recession has convinced corporate heads to reassess the way in which real estate is viewed. The role of the real estate agent within the corporation is improving as they make decisions which continue to have a positive impact on corporate earnings. As real estate fortunes depend so much on the economy, professional real estate businessmen are keeping a close eye on the policies of the Federal Reserve Board, the rate of inflation, and interest rates. Aside from straight purchases, corporations are finding other methods for obtaining real estate, such as joint ventures or separate real estate subsidiaries. One question many corporations are facing is that of relocation - the trend being to move out of the major cities although relocation in the outlying areas can be costly. Office parks, though costly, are being seen as a viable answer for many to the question of relocating. The end result of all this sudden corporate interest in real estate will be a greater professionalism among real estate professionals within the corporate world.
Publication Name: National Real Estate Investor
Subject: Real estate industry
ISSN: 0027-9994
Year: 1984
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AT&T Leases Prompt Use of Unusual Device
Article Abstract:
One of the biggest real estate stories in 1984 is that involving the breakup of AT&T. The company owned over 20 million square feet of real estate within the continental United States, and over 3,500 leases and 400 deeds had to be transferred, while 1,000 new leases had to be negotiated. Accomplishing all this, plus the sale of many pieces of property to outside buyers was a monumental task which began in mid 1982. Although the court had ordered that the new companies have no relationships with each other, in some cases AT&T equipment was so encumbered in an area that this became impossible. Where this occurred, an unusual device called the three dimensional conveyance was used. This allowed for various levels of ownership, and is based on a common law theory that fee ownership descends from the surface to the center of the earth, and upwards to infinity. Also difficult was keeping up with all the various state laws, and the judicial and regulatory rulings. Insiders compared the complicated process to a bad divorce, and were relieved when the two year project was finally finished.
Publication Name: National Real Estate Investor
Subject: Real estate industry
ISSN: 0027-9994
Year: 1984
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Sale of partnership interest can change state tax consequences
Article Abstract:
The structure of a real estate sales transaction has considerable implications on legal liability and taxability. Other sales structures must be considered to avoid complications which could result in substantial tax rates. Under partnership structures, partners can opt to sell their partnership interests instead of the partnership itself selling the property it holds in possession. The tax consequences arising from such a transaction are evaluated in terms of income tax, franchise tax, sales/use tax, real estate transfer tax and property tax.
Publication Name: Real Estate Accounting & Taxation
Subject: Real estate industry
ISSN: 0897-0262
Year: 1993
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