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Tucson's Soft Commercial Real Estate Market Offers Tenants Several Options To Save On Occupancy Costs
Date:3/23/2009

Still reeling from the tech downturn and subsequent economic recession, Tucson's corporate real estate market continues to experience declining rental rates and increasing vacancy. Like markets all across the country, Tucson is experiencing high vacancy rates of more than 10 percent in retail, office, and industrial spaces. Building owners are pressured to strike deals because of competition for tenants and their own mortgage refinancing issues. Clearly, these market conditions have opened up numerous options for credit worthy corporate space users to negotiate rates and terms that deliver significant saving off overall occupancy costs.

Tucson, Arizona (PRWEB) March 23, 2009 -- For those corporate tenants in the market for new space, opportunities abound to capitalize on lower rates and increased concessions such as free rent, increased tenant-improvement allowances, reduced security deposits, and in some cases even cancellation or contraction/expansion options. With sublease space still flooding the market, not only is the excess space putting competitive pressure on direct -space landlords but also providing space seeking tenants with additional options . Eager, sometimes desperate, to reduce their surplus space liabilities, many sublessors are offering dramatically lower than market rates and numerous concessions.

But what if you are not is such an opportunistic position? What if you currently have more space than you need? Or what if your lease doesn't expire for another eighteen months or more, and you are presently paying greater than market value? As a result of severely declining rental rates, it is not unheard of for companies to be locked into existing leases with terms several dollars above market rates.

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Source: PRWeb
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