Accounting changes could greatly affect your ability to borrow from banks and raise capital for your business and should to be addressed now, advises tenant representative Michael Coretz, principal of AZTC Visionary Sponsor Commercial Real Estate Group of Tucson. “Tech companies will need to act now to reduce the effects of the new financial reporting standards that will apply to current and future commercial real estate lease negotiations,” says Coretz.
The dramatic shift in new requirements for companies to capitalize their real estate and equipment leases will take effect in early 2019, Coretz says, and will need to be reflected on 2017 and 2018 financial statements. As a tenant representative, Coretz is speaking to clients and others about the best ways to avoid the financial pitfalls of the new rules. A three-part series about it is on his website where visitors can also look at articles about Tucson and Arizona economic development and white papers in major Tucson industries: aerospace and defense, logistics and transportation, trade with Mexico, bio and mining.