FASB and corporate leasing reality

I just attended the annual SIOR Conference in Portland (Society of Office and Industrial Realtors) an international group of 3,300 commercial brokers who have to take a lot of classes and document they are in the top few percent of the nation’s commercial real estate experts. I’ve been a member for 34 years and it is an amazing group of men and women dedicated to their profession. A few tidbits I learned from major corporate red estate directors and brokers – the new FASB (Financial Accounting Standard Board) where the cost of renting assets used in their operations, like equipment, office space, etc. goes on their balance sheet. Check with your own CPA of course. Surprisingly, most folks said this new ruling has not affected how corporations lease space, the length of lease, type of lease, etc. I would have thought there would be more of an impact. Another tidbit – many office users of open space hate it (one study cited 72% disapproval), and many report the opposite of what was intended. Less synergy, less collaboration if worker density is too close as employees put on their headphones and ignore each other. What is better is a panel that goes just above the head so there is visual privacy, and you can stand up and converse with others if need be. There was discussion of the elevating desks, and there are privacy panels that go up or down with the desk.