|
Written by Dean Kaufman
|
|
Editor’s note: This is the first of a short four part series on leasing space for your business; we will publish all four parts over the next few days.
In 2009 he office market continues to favor tenants. Market indicators show no immediate sign of reversing this trend. It’s likely that 2009 will be remembered as “The Tenant’s Year” as the real estate pendulum continues to swing in their favor. Four major trends in leasing include:
Blend and Extend
Early renewals in exchange for tenant-favorable terms. While landlords may be reluctant to offer concessions it is a far better option than tenant space that goes without utilization.
Focus on Second Generation Space
Tenants and landlords are reluctant to part with the capital required to build tenant spaces from shell condition, especially given the many second-generation options available.
Reduced Term
Uncertainty on the part of tenants and landlords has resulted in a fear of commitment. Tenants fear a long-term lease liability in the face of economic uncertainty. Landlords are concerned about being locked into today’s (low) rates when the economy rebounds.
Impossible to Pick the Bottom
Despite the search for a clear “turning point” at which the market shifts back to positive, a less transparent “bounce” along the bottom is more likely. In other words, we won’t know that we’ve hit the bottom until 6 to 12 months after the fact. Tenants with lease expirations in 2009 or 2010 should be talking to their brokers about strategy; the opportunities have never been greater.
About Colliers International Las Vegas, Vegas Valley Office Team
The Vegas Valley Office Team offers over 75 years of office leasing and sales experience. Comprised of 5 brokers and 1 executive administrator, the Team offers a hands on approach to all facets of landlord and tenant representation. The Team offers unrivaled market insight while fostering a culture of personalized service for its clients. The team may be reached at 702-735-5700
 |
Subscribe to this comment's feed