The past three months have been very busy in the leasing segment. Many companies who signed leases with high rates near the peak of the market in 2006 or 2007 have been rolling out and looking for new space.
They are finding some good deals, but not necessarily great deals. Often they can move up to a higher quality location, add some space and perhaps still save money. Landlords are willing to provide some incentives, but many are holding firm, because of loan covenants with their lenders, or because they can’t give reduced rates to new tenants without reducing rates for exisiting tenants.
The biggest factor Tenants must put into play of they want to negotiate their best deal is to allow for enough lead time. Indecision and delay are your worst enemy. You may think it will only take a few weeks to find a space, but the negotiation, the legal review, the space planning, the permits and buildout process can extend several months. That is if everyone is working together.
The stress and pressure when you put yourself into the “time box” are enormous. Start early.