Just how eager have some landlords become to get vacant space rented?
Consider this: One landlord is offering brokers the chance to win a Porsche if they bring a “qualified tenant” to look at office space at 707 11th Avenue.
...William Montana, a senior managing director at tenant-focused brokerage Savills Studley, said via email, “Lately there has been a deluge of marketing emails circulating with the subject lines ‘Reduced Rent,’ ‘New Price’ and etc. We created a file to archive them and the list is growing. We receive about 10 of them a day. That’s in addition to the 250-plus ordinary available space flyer emails we receive daily.”
Mr. Montana continued, “The other thing we’ve noticed recently is that whenever we show a building to a tenant, the agents call later the same day to follow up and ask if there’s interest or what they can do to generate an offer. That doesn’t happen in a strong market. All of this points to weakening demand for office space and that is creating leverage for informed tenants...”
“There’s no question that as the months tick by the market is becoming ever more favorable to the user,” said Mitchell Steir, the chairman and chief executive officer of Savills Studley. “At this point, there simply aren’t enough large users in the market to absorb the amount of available space. Landlords will have to continue to adjust their pricing and concessions...”Climate Change: It’s No Longer a Landlord’s Market. Behold the Power of the Tenants!
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