The commercial market has been very tough to pin down in the past 6 years. Prior to this downturn, it was an owner’s market. Bidding wars for property to lease or buy were far from uncommon. Years later, we are seeing signage on every block and every property has vacancy.
The key here is compromise. A buyer is looking for a steal— An owner is looking to make money (hopefully!!). A prospective tenant wants to be sure that the investment they are making will make them money in the long run. Owners need to take the bull by the horns and try and get a good tenant in for a significant time period… Making a decision based on a dollar or even 2 dollars less a square foot is something that is very real now. With higher taxes and the risk that another offer may not surface soon— It makes sense to compromise. There is always another place for a tenant to end up, and if it is a good tenant that could work out for the long haul– Making a deal is a good idea.
Agents and property managers alike are in the business to help owners, and the pressure gets put on when an offer is in the works. Making good on a deal is always in everyone’s best interest, and can help the market rebound– Unqualified tenants and buyers are always a risk– No one is going to come out and say “I really want to rent this, but in 3 months, I doubt I will be able to pay the rent”. This is not what is wanted, and it is always very important to avoid at all costs. The more we fill space and sell buildings, the better the market will get. More business’, more shoppers, more investors..
It will all happen. It will take time and patience, but it will happen.