Re:Apple to create new London HQ at Battersea Power Station
by cylinder on Wednesday September 28, 2016 @06:30PM
(#12601878)
Actually, enormous deep-pocketed companies with good credit, like Apple, are treated very favorably by landlords. The credit behind the tenant on a leased property determines the yield. So, a building tenanted by Apple on a 20-year lease can sell for a 2% cap rate while the same building tenanted by Joe's Plumbers Inc on a 10-year lease will sell for 6%+. Apple knows that so they can negotiate cheaper price per SQM.
[ Parent
| on HN ]
There are no comments on this comment yet.