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NMIRF slashes rental rates to attract tenants
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Posted on Nov 26 1999
The Northern Mariana Islands Retirement Fund will lower the rental fee of its office space to a more reasonable rate to attract government offices to transfer in the three-story building.
According to NMIRF Administrator Juan S. Torres, the board has given him the go signal to negotiate for a rate lower than the original price of $1.65 per sq. ft.
The second and third floors of the building have been designed for lease so that the agency can recoup the $3.5 million it spent for construction. But the lease rates have discouraged many government offices from moving to the Retirement Fund building especially with the reduction in their budget.
Due to harsh economic conditions in the Northern Marianas, most building and apartment owners have substantially cut rental fees to keep their clients, making it more difficult for the NMIRF to compete.
The NMIRF building has been ready for occupancy since December last year, but most of its office spaces remain empty.
At the same time, Mr. Torres said NMIRF will implement cost-cutting measures in support of Gov. Pedro P. Tenorio’s austerity policy amid declining government revenues.
“We will control more the expenses and we will evaluate areas where we can cut costs,” said Mr. Torres.
Earlier, the NMIRF board has abandoned a recommendation to increase by 2 percent the government’s contribution for its workers in order to help the administration cope with dwindling resources.
An actuarial study had proposed to hike the share pitched in by the government to 26 percent from 24 percent to keep the NMIRF financially sound.
But the board had been mindful of the government’s predicament and decided unanimously instead to forego the recommendations of the actuary, said Mr. Torres. (Lindablue F. Romero)
