Published by Amia Froese February 3, 2021
For the first time since the recession, we have begun to see a shift from a Landlord’s market to a Tenant’s market due to increased market volatility, COVID-19 impacts and a rising surge of general uncertainty. This means that while many Landlords have previously been able to stand firm in their asking rates, minimum lease terms and qualified tenant metrics, they are now considering more creative solutions to fill their vacancies (both existing and upcoming) and offset the operating expenses that they may have previously been covering.
Depending on the sector of the market, it could look like the following:
Office: Reduced rent, shorter term leases.
Retail: Reduced rent or NNN only for the first few months in an effort to fill a dark storefront and cover operating expenses.
Industrial: Shorter term leases. (Lease rates remain largely unchanged due to high demand and low inventory. This sector continues to remain the most resilient.)
This year and the continued effects of COVID-19 remain unknown, but for all Landlords (and Brokers), one theme rises to the forefront: creativity. Creativity in marketing, in lease negotiation and structure, in communication, and ultimately, creative resilience during these unprecedented times.
Published by Amia Froese
amia@saratogacom.com