Property Managers No Longer Holding the Cards - Business Renters Renegotiate With Vengeance

For many years property managers have been able to negotiate from a position of strength. That's no longer the case when signing new tenants or negotiating commercial property leases. In fact, just because you do have a really good anchor tenant commercial property lease does not mean the company will not come back later and ask to have you review the lease and drop the price.

Under normal conditions you would tell them to forget it, but in the present state of the industry we are not in normal conditions, we are in an economic crisis in the commercial real estate market and it is the worst it's been in nearly 2 1/2 decades.

Even large anchor tenants are asking companies to renegotiate down their lease or they're telling them they will leave the centers. Starbucks branches are asking all their commercial property managers of all locations to renegotiate the leases. If Starbucks leaves as an anchor tenants that could cause the other businesses to go at a business and have more "For Lease" signs in the shopping center.

Sometimes the property manager has no choice, and yet if they reduce the lease for Starbucks they have to do re-negotiations for everyone otherwise the other tenants get very upset, and there will be a bit of mutiny on their hands. Many commercial properties are just trying to stay afloat even with their property values having been drastically reduced.

"Property Managers No Longer Holding the Cards; Business Renters Renegotiate," noted Stephen Schmidt of Condor Properties in a recent interview on CNBC. The tenants are holding the cards and negotiating with Vengeance. Please consider all this.

Lance_Winslow

Enter your email address:

FeedBurner

Related Post :