Entries Tagged as 'Tenant Representation'
A recent article in the Wall Street Journal reports that office vacancy has reached 15.2% and is expected to continue rising to 19.3% over the next year. The data comes from REIS, Inc a provider of commercial real estate performance and analysis data for over 25 years. Over 25 million square feet were returned to the market in the first quarter of 2009 driving vacancy rates up and rents down. "Effective rents, which include free rent and other landlord concessions, fell 2% in the first quarter to a national average of $24.16, the largest drop since the first quarter of 2002, according to REIS. Sublet space, on average, is going for between 10% and 15% less than what landlords are charging."
It is a great market for tenant looking for space or renewing during the next 12 months. Smart Landlords cutting deals to keep their buildings full during this downturn providing tenants a great opportunity.
Markets such as Houston and Washington DC, with less exposure to financial services, is weathering the downturn better than others like New York City. The vacancy rate in New York increased two percentage points in one quarter, from 8% to 10.2% and rents dropped over 5% to $52.00 per square foot, still over double the national average.
How can you, as a tenant, take advantage of this opportunity? Make sure you get professional assistance. OfficeFinder tenant representative specialists can provide you the answers to your questions and help you find and negotiate (or re-negotiate) a great deal. There is no obligation to contact them and there is usually no cost to you for their services. Request a contact.Houston Office Space , Lease Negotiations , Manhattan Office Space , Office Relocation , Office Space , Tenant Representation , Washington DC Office Space
According to a recent report by CBRE the amount of empty offices in downtown Chicago took an 8% jump in the first quarter of 2009. The year end 2008 empty office rate for office space in downtown Chicago stood at 12.3%. The 8% jump brings the current office vacancy to 13.3%. They also noted that there was a 40% increase in sublease office space to a total of 3.8 million square feet. Much of the sublease space came from "financial companies, including the collapsed Bear Stearns Cos. and Washington Mutual Inc. JPMorgan Chase & Co. and Bank of America Corp. also resorted to subleases."
As we see unemployment increase we will also see a corresponding increase in the vacancy rate in not only Chicago, but all major markets. The higher the unemployment, the greater the increase in the office vacancy rate in that office space market. This in turn will help turn the office rental rates lower providing better deals for those tenants who are looking for space.
Taking advantage of these opportunities can be tricky, especially if you are considering sublease space. There are risks involved and it is important that you get professional advice. A great source is to use a tenant representative; a licensed real estate professional who specializes in office space leasing and sales. They have a fiduciary responsibility to look after your best interest. Avoid using listing agents. No matter what they tell you, they represent the landlord. Typically a tenant rep will not cost you anything since they share in commissions offered by the landlord. It is a win-win for you. Make sure and level the playing field and have an advocate who know the tricks of the trade. They will make sure you not only get great space at the best price, but also avoid potentially business crippling mistakes.
Chicago Office Space , Lease Negotiations , Office Relocation , Office Space , Tenant Representation