Euro crisis tempers commercial leasing rebound
January 5, 2012
By: Theresa Agovino

The commercial leasing market strengthened during the fourth quarter of last year, but annual activity still fell below 2010 levels, as the European debt crisis dampened the rebound that was emerging in early 2011, according to a new report from Studley...

...“A lot of what closed in the fourth quarter was based on a handshake before the debt crisis,” said Matthew Barlow, an executive vice president at the firm, which represents tenants only. “I'm not sure the activity leads to the conclusion that things are getting better.”...

... But there is clearly a move toward saving money. Mr. Barlow points out that nine of the 13 largest deals during the quarter were lease renewals—a sign that companies are looking to preserve capital by avoiding costly moves...

... In early 2011, there was a substantial amount of discretionary leasing. Now, he says, companies aren't striking deals unless their leases are expiring or a special opportunity presents itself...

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