"The $500 Billion Disruption" by Ed Lubieniecki & Barry Faulkner

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May 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.

About RealFoundations RealFoundations is a professional services firm focused on the real estate industry. With offices on four continents, 400+ client-serving professionals and off-shore delivery capabilities in India, RealFoundations provides Management Consulting, Managed Services and Energy Solutions to developers, owners/operators, service providers, institutional investors and corporate occupiers. From the building itself to the way it is used, operated and financed, no firm understands the inner workings of the entire real estate ecosystem as well as RealFoundations. We Make Real Estate Run Better.

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