Business owners are trying to come to grips with ways to successfully negotiate in a Landlord market. It has been almost two decades since we last saw anything like this, and it is difficult for Tenants in 2017 to handle the changes.
Tenants have become accustomed to working with compliant Landlords seeking to eagerly accommodate the desires of the Tenant, whether these desires were seeking the modification of office space or negotiating more flexible leasing terms to protect against business changes.
In a “Landlord market”, Landlord’s quickly morph into a new sort of fellow, one who may not be so accommodating! Don’t get me wrong, most Landlords are nice guys, they just perceive that they now have the leverage on their side of the table, so they emit a new attitude of “take it or leave it”. Some may seek to soften this rougher posture a bit, but the results are still the same. Rents are up, construction contributions are down, and rent concessions like free rent are being pulled back.
Business Owners in this market are seeing the reality of newly increasing operating costs affecting their bottom lines at a time when they may have not have even fully recovered from the malaise of the Bush/Obama years. The stock market may be up in the last 90 days, but sales have yet to rebound, and here in New Jersey companies are slow to expand or create new jobs.
So what is a Business Owner to do? I suggest that you don’t try to figure this one out alone. Your real estate advisor can show you successful strategies to negotiate more effectively and with the expenditure of far less emotional capital. Real estate advisors are there to provide you with the knowledge and experience to operate on a more level playing field.
Do you see more stress in your future? Call us, we can help! After all, at Dickstein Real Estate Services, “OUR DIFFERENCE IS YOUR ADVANTAGE®”.
Categorised in: Negotiations