COMPETITION TO KEEP EXISTING TENANTS
AND GARNER NEW ONES WILL BE FIERCE…
So far 2009 has been tough on the commercial property owners in Colorado Springs. However for those of you who lease space, things are looking good.
The Turner Commercial Research Report states that at the end of the 2nd quarter, Colorado Springs had an absorption loss of one million square feet across all product types, meaning office, retail and industrial space. What does this mean? That as of the end of 2Q09, there is 1,000,000 square feet more vacancy than there was at the end of 2008. Another staggering statistic from TCR is that the total vacant space is nearing 10 million square feet, which is an all time high for our little market. These both indicate that being a property owner right now may be tough, but in the same breath, it’s a great time for tenants to negotiate renewals, look for new space and grab all the perks that landlords are offering to keep their spaces leased.
“Competition to keep existing tenants and garner new ones will be fierce,” says the Turner Report.
Brokers in town are saying that this is an understatement.
We are thrilled to see fierce competition between landlords because this means that tenants win!
Mike Helwege of Bach Real Estate Partners reports, “Landlords are motivated right now to retain quality tenants and may agree to lower the rental rate and/or provide other concessions in return for an extended lease period.” Not only are they lowering rental rates, they are offering rent abatement, tenant improvements and a myriad of other concessions, if you know what to ask for.
If your business is lucky enough to be stable in these turbulent times and you can commit to a longer lease term, there has never been a better time to strike a deal on commercial real estate.
But don’t approach this huge financial and business decision alone or uninformed. Just as landlords have their listing brokers represent them, smart tenants have a tenant representative working on their side of the table.
A tenant representative is a broker who specializes in representing only tenants, NOT landlords.
There are many in Colorado Springs that represent tenants, but there is only one firm here that never represents landlords. That’s Tenant Real Estate Advisors. Not only do we avoid any possible conflict of interest by representing only tenants, we develop innovative solutions to even the most complex real estate needs.
A local client recently wrote, “Tenant Real Estate Advisors are outstanding consultants in the business of helping companies determine the optimal solution for their commercial real estate…The office space that we ultimately selected is perfect for us and saved us approximately 70% of our previous occupancy costs.”
Thinking outside the box is the name of the game and we’re the experts. If you have a lease expiring in the next 2 years, or if your needs have changed and your current lease no longer fits your business, now may be the time to address it!
Give us a call today to discuss how you might reap the benefits of this down economy.
Don’t try to figure it out on your own… get an expert involved!
If you have questions about your exact situation, we are happy to answer questions or help you find the right professional that can. Give us a call anytime @ (719) 634-9000.
866.799.8732 | 719.634.9000 (o) | 719.448.0500 (f)