When it comes to commercial real estate, there are a few key issues that are of great importance to potential tenants: location, foot traffic, competitor tenants, rents, accessibility, and space size. Many tenants, though, may find several properties all ticking off the right amount of checks—and their decision may come down to exploring which landlord is willing to make some concessions.
At the same time, landlords and owners may be frustrated at not being able to attract any tenant to a vacant space that has been available for some time. Again, the answer may be to look at concessions that can suddenly make a property more desirable.
In the most basic of terms, a concession is a compromise between the landlord and tenant, one that usually involves the landlord offering something as a “giveback” to get the tenant to sign the lease. Normally, concessions make sense in order to quickly fill a vacancy, at lease-renewal time, during a slow market, or when a property is first entering the market.
While a concession is often viewed as a cost to the landlord, that cost can be offset over the duration of the lease. In addition, before offering anything or everything, it’s imperative to research competitive properties, concessions that are working in similar properties, concessions that make sense for specific businesses, and ones that make sense in a changing marketplace.
Concessions come in all shapes and sizes, and many are changing with the times. Regardless of the concession(s) offered, though, it’s important to spell out the details in a strong lease document. Let’s look at some examples:
Of course, each concession has its share of pros and cons for landlords and tenants. That’s why it’s important to work with a skilled team that not only knows the market but also knows the concessions that make sense—so both parties can lease happily. The professionals at Morris Southeast Group are that team, and have a winning record of representing owners and tenants in property searches and lease negotiations. To learn more about owner and tenant representation, property investment opportunities, and/or other services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.
When “Mad Men” first aired, many viewers looked at it with an eye toward the nostalgia of office design. The show had cubicles and corner offices, executive bathrooms and gobs of square footage to fill. But modern office design and open plans happened, and—well – this isn’t Don Draper’s office anymore.
And while some people find it easy to blame Millennials for practically everything, there is plenty for which to thank them. Their place in the workforce and in executive and decision-making positions is certainly keeping the current office marketplace interesting. As work has often changed from a destination to an experience, property managers, owners, and developers are coming up with more and more creative ways to keep office space current and competitive.
The office space pendulum appears to be swinging toward a happy balance of open space and cubicles. One way to avoid expensive overhauls and re-dos that change with the design trend of the moment is to provide and market flexibility. Some properties have started to provide space-planning services to help potential tenants envision a floor plan that works and to help successful tenants adapt the space rather than seek a lease somewhere else.
Part of that flexibility is reconfiguring floor plans to create common spaces. Because of technology and working remotely, many potential tenants do not require an abundance of square footage of their own, but they are willing to share space and services with other tenants.
Many people wonder what happened to the 40-hour workweek. As a result, basics to everyday living—from picking up dry-cleaning to scheduling some gym time—often get squeezed out. That’s why some landlords are now offering a wide assortment of amenities, including concierge-type services, food options in the lobby, bike racks, rooms with showers and lockers, weekly or on-premises health and wellness experiences, and shuttle services to help bring tenants to public transportation centers. Creativity mixed with a tenant-interest inventory can go a long way.
It goes without saying—and yet, must be said over and over again—tenants require greater connectivity, especially as their dependence on technology grows, both in-house and remotely. Beyond speed and secure connections, connectivity also requires owners, managers, and developers to move the property toward smart technologies, and often green technology is part of this overall trend.
These basic items made the list because they’re the things few people ever mention on an office-space wish list—but they can be the first ones noticed when not done well. Common areas, including restrooms and stairwells, should be well maintained. At the same time, we also live in a time of workplace shootings, so steps can be made to ensure tenants and their employees are safe without feeling as if they’re imprisoned. This means lobby security and visitor protocols, as well as employee key card entrance for parking and building access.
When it comes to marketing your building in order to attract a new and dynamic pool of tenants, a lot more can be said—such as the importance of a property’s first impression, as well as the availability and transparency of the landlord/owner. Because at the end of the day, tenant satisfaction comes down to strong relationships and the quality of the product.
The Morris Southeast Group team knows a lot about those things, because it’s how we conduct business. Our professionals can help you evolve your property to meet the challenges of a changing workforce.
To learn more about property investment opportunities, property management, and/or other services, call Morris Southeast Group at 954.474.1776. You can also reach Ken Morris directly at 954.240.4400 or via email at firstname.lastname@example.org.