$500 Billion Disruption by Lubieniecki & Faulkner

A More Transparent View of a Company’s Financial Health

The $500 Billion DisruptionMay 2018 | Dallas, TX – Published in the Spring 2018 issue of NAREIM Dialogues, Ed Lubieniecki and Barry Faulkner’s latest article “The $500 Billion Disruption” strives to amplify the impact of the Financial Accounting Standards Board’s (FASB) new lease accounting standard, requiring tenants to give users of financial statements, like investors and creditors, a more transparent view of the company’s financial health by including lease obligations as liabilities on balance sheets.

As a result of the new standard, the topic of leased space has taken on new importance in the C-suites and boardrooms of the world’s largest companies. CRE veterans predict tenants will change the rules of engagement and anticipate new marketplace dynamics like shorter leases, a surge in co-working, and volatility in asset valuations.

 

“The convergence of these developments could materially influence property valuations and returns. Investment managers should discuss the ramifications of these changes with their clients, manage their expectations and help them avoid surprises.”

                          — Ed Lubieniecki & Barry Faulkner, RealFoundations

 

Knowledgeable and proactive advice on this topic will ease the transition for investors. Click the icon above to read the full article and suggestions on how to begin communicating with investors to avoid blindsiding. Click for more information on the cited Inaugural Global Lease Count Study.

 


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National Association of Real Estate Investment Managers (NAREIM) is the home for real estate investment management investment and business strategies. Through meetings, proprietary research, fellowship programs and content, NAREIM delivers an open network in which members candidly share experiences, insights and best practices with peers for all issues of real estate investment management.

 


About RealFoundations

RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.