As organizations look for ways to cut costs in today’s real estate market, many are considering lease modifications, terminations, and subleasing arrangements. Get answers to some common questions about financial reporting for those situations.
In the current economic environment, it has become increasingly common for organizations to explore opportunities to reduce or redeploy their real estate footprint (for example, repurposing underutilized office space). As a result, many organizations are amending or early terminating leases, or they are subleasing portions of their leased properties.
Here are four transaction scenarios commonly observed in today’s real estate markets and questions organizations should ask about the scenarios’ financial reporting impacts.