PG Commercial Real Estate – Commercial Realtor Montgomery County, PA and Greater Philadelphia Region

Author Archive

Lines Blur between Office and Retail Properties

Lines Blur between Office and Retail Properties

While there is very little new office building construction in the Philadelphia Region it sounds like there is new competition for Suburban Office Landlord’s coming from Retail Landlord’s. At a Philadelphia Retail Summit on February 16th representatives from Federal Realty Investment Trust, The Goldenberg Group, Wal-Mart Stores, Regency Centers, PREIT, Brixmor Property Group, RAS Brokerage, A & E Construction moderated by Jerald Goodman of Drinker Biddle & Reath. It was mentioned several times that the retail spaces were being redeveloped-reused for other purposes such as office space and medical office space. With this new competition there still were over 2.3 + million square feet of office space absorbed in the Philadelphia region in 2011. Will this new competitor reduce rental rates? Doubtful — because there is very little new construction of office buildings in the region. For example the vacancy rate for Office space in Montgomery County is approximately 12%. From a recent survey of Office Buildings in that county it appears that the trend for rental rates is that they are stable, not trending up yet. Using the Montgomery County office market as an example, even with this added competition from retail properties the office market in Montgomery County PA will most likely continue a stead slow improvement for 2012 following the employment picture.

Posted in: Newsletter Articles

Leave a Comment (0) →

It’s A Tenant’s Market: Take Advantage!

Tens of thousands of businesses can significantly reduce their office rents right now. This is not a government program, so please don’t call them. To be eligible, you have to be:

1. A tenant in good standing

2. Creditworthy

3. Have a lease that terminates in the next two to three years

4.  Be willing to take advantage of a tenant’s market to trim overhead

Since landlords are under pressure to keep their buildings filled with quality tenants, it is possible to approach the landlord, and in exchange for extending your lease, you may be able to obtain lower rent, a rent concession, work space improvements, better lease clauses, a new tax base and more.

How? Convince the landlord you are serious about leaving.

Nothing says “I really can move to another building” more effectively than retaining a tenant representative who knows how to take advantage of current market conditions. A tenant rep will analyze your existing lease, while lining up competitive space offers in other buildings. This positions you and your tenant rep to approach your present landlord with negotiating leverage. When your landlord realizes you and your tenant rep have done your homework, and sees the competing offers, chances are, they’ll be quick to make you an offer you can’t refuse.

Posted in: Newsletter Articles

Leave a Comment (0) →

Plugin by Social Author Bio

Page 3 of 3 123