Tenant Upper Hand
The art of the negotiation pales in comparison to the art of being a tenant in a tenant's market. |
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Boris Yelyashov, right, reps a variety of tenants for MB Real Estate, a full-service firm with offices in Chicago and New York. Here with tenant rep group head Andy Davidson, he says businesses should review their leases as a priority when they evaluate all overhead costs, even if they're not near expiration. This competitive market, he tells us, often means "a landlord would rather keep a tenant, even in a smaller space." But, tenants should also plan ahead. Three new office buildings come online this year, so he expects a competitive market that will put tenants in the driver's seat to negotiate concessions including expansion rights to set up for future growth. |
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MB Real Estate reported that CBD sublease space is up from a low of 2.3m-SF in mid-'07 to 3.4m-SF now. With landlords trying to undercut each other to get buildings filled, now is the time for tenants to get a good deal, Boris says. He saved a tech company in the suburbs $3.8M over three years by negotiating with a landlord who wanted to keep the tenant in the building. |
