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Tenant Perspective Part 3

3. Landlord net operating income

With greater competition for key properties, prices are rising. Purchase prices increase, but institutional and private investors still seek to maintain their prior returns on investment capital. The primary goal is to increase revenue. Return is derived from cash flow, principal payments over time, and the ultimate sale of the asset. Net Operating

Income (NOI) impacts both cash flow and the value of the asset.
Base rent increases are not the only way a landlord can improve revenue. Increased occupancy, parking charges, specialized services including after-hours air conditioning,
and even re-measuring the building to increase the total square footage will also accomplish this goal.

Click Here for the 4th factor.

For more information or to answer questions please contact.

Forrest Blake | Senior Vice President

SVN | Commercial – DTLA

800 South Figueroa Street, Suite 925, Los Angeles, CA 90017

Phone 213.618.4196 | Mobile 310.850.2381

forrest.blake@svn.com | www.svn.com

CalDRE# 01054174

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