As many tenants know, rents have been rising. The stock market peaked in May (and is threatening a new high again), and according to regular cyclical patterns, it is set to continue rising for another year or two. Continued increases in rental rates can take a HUGE bite out of a business’s bottom line.
The stock market is a leading economic indicator. It affects the psychology of companies. When the market is up, there is a tendency toward growth and expansive thinking, but when it’s down, people are less likely to spend money on real estate and investments.
Denver, Houston, and Edmonton are just 3 of many cities that are heavily dependent on oil and gas. A prolonged slowdown in these markets, as we are seeing now, creates a tremendous ripple effect, impacting office spaces, retail spaces, labor markets and more.
The Latin phrase caveat emptor, or “buyer beware,” is especially true when making real estate purchases.
Many businesses assume that the infrastructure of a property they buy functions.
The best time to leave a property is upon expiration of the lease term, but there is always room for negotiation.
Several months ago, a client (the tenant) had a lease that was close to expiration. The tenant was about to sign a lease for a different space, but something happened: Another property came on the market, they looked at it and decided it was much better suited for their business. However, starting all over in the negotiation process would have put the tenant over their current lease expiration date. In order to acquire the new space, the tenant would have to extend their current lease, or pay a penalty.
Most companies are reactive in their commercial real estate needs, especially as their business locations increase. To become proactive, companies need to see the big picture - there needs to be a vision that comes from the top. If the CEO or Division Manager hasn't defined a vision for the business, it's hard to be proactive with real estate. A vision tells people where they want to go, so real estate can be planned and managed in order to support that vision and those business goals.
There were a few rough years after Iceland’s economy crashed in 2008, but things are starting to heat up again.
Invest in Iceland is the economic development branch of the Icelandic government. It frequently invites potential investors to visit the country and explore opportunities for growth and development, as well as Iceland’s breathtaking scenic beauty.
- Lexington Avenue, between 101st and 102nd Streets
- Approximately 50,000 square feet of buildable area
- Retail Component of approximately 10,000 square feet
- Ground and Lower Level will have high ceilings
“Total cost” encompasses more than the rent.
When negotiating a commercial lease the “total cost,” including each of these factors, must be considered:
When corporations are looking for office space, they typically start by casting a large net. This involves taking the interests of all key players into consideration before narrowing down the choices.