In the midst of an improving South Florida business climate the reality remains that landlords continue to offer concessions when negotiating real estate transactions. The state of the local business economy indicates that tenants wield more power and often fare better in negotiations. New or expanded leases for 2013 only include 88,000 square feet in an area that boasts 29.6 million square feet of commercial office space.
This doesn’t mean, however, that there isn’t good news for building owners. A slight uptick in average lease rates, from $17.90 per square foot to $18.18, is the largest gain since the beginning of the recession. When negotiating new lease agreements it is important for both tenants and building owners to understand how market conditions will likely change over the life of the lease. Spend some time researching economic projections before signing the lease to ensure beneficial terms throughout the duration of the lease.
Contact the professionals with Morris Southeast Group to learn more about the South Florida commercial real estate market. If you’re in need of new office space we can help you found the ideal location for your business.