According to the Bureau of Labor Statistics, the national unemployment rate in December 2009 clocked in at 10% (15.3 million persons unemployed) compared to the start of the recession in December 2007 when it was 5% (7.7 million persons unemployed).
Translated into commercial real estate terms, we are seeing office vacancy running north of 12% in the Philadelphia metropolitan area. Although absorption in the 4rth quarter of 2009 improved, the forecast is for vacancy to remain at this level for the coming year.
Whether you are a landlord carrying vacancy or a tenant needing to relocate, the current economic climate offers a renewed opportunity for a broker to add value to a landlord and to a tenant alike.
Tenants now rule the landscape because of the scarcity of tenants running in the marketplace.
One of the responses to this condition is the paying of commission bonuses for executed leases. A landlord may ask, “Is this truly necessary?” The answer is most probably no, but it sure does make compelling sense.
As with all numbers games, the probability of finding a qualified tenant is increased by the amount of exposure a space receives. And real estate is no different than any other commodity, a scarcity of resources drives up prices. In this case, the scarce resource is tenants and the cost of getting them to sign on the dotted line is more time consuming, requires more finesse, and takes more effort to locate.
Keeping a property clean, maintained and equipped for today’s companies needs will also go a long way towards getting a property leased.
For additional information, please contact Julie Kronfeld at email@example.com or 856-802-6516.
This entry was posted by System Administrator on March 24, 2011 at 3:39 pm, and is filed under General. Follow any responses to this post through RSS 2.0. Responses are currently closed, but you can trackback from your own site.