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Today's Economy Forces Landlords to Get Aggressive...Tenants Reap the Rewards
Date:9/2/2009

years with the tenant securing 4 months free rent and even securing exterior signage on the building, a rare and valuable asset in NYC.

Mark Rosen of ITRA San Francisco reports that landlords in his market are tripping all over themselves to compete for credit tenants. Rosen started a search for a client for new commercial real estate space in the Downtown CBD many months ago and received a proposal for full floor of 15,000 square feet in a Class A building at around $40 per square foot. By advising his client to wait, Rosen was able to revisit the same property six months later, securing a letter of intent from the landlord for $29 per square foot for the same space. Rosen also secured a bundle of incentives that included the use of a 1,200 square foot storage and workshop for free, 2 months free rent, a turnkey construction allowance valued at $25 per square foot, expansion rights, and even an option to reduce the amount of space early if the tenants needs change during the lease term.

Ross Selinger of ITRA Long Island had to take a more aggressive approach to secure a reduced rent for one of his clients. His strategy was to survey the market with his tenant, and negotiate aggressive terms with comparable buildings. He used those aggressive deals to create leverage, forcing his client's landlord to compete. The landlord was initially resistant but once he realized that we were serious about moving he met all of our demands and gave us a great deal reducing the rent from $36 per square foot to $26 per square foot.

Only an experienced tenant representative who is out there every day can understand the rate of change, and exactly how it can be used to the benefit of office tenants. At ITRA, exclusive tenant representation is not just our business, it's our only business. A global organization providing tenant representation for small and large companies, '/>"/>

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