This current commercial real estate cycle is continuing to heat up. Available product across the board is decreasing, rents are increasing & concessions are decreasing and those companies that react quickly often reap the rewards.
In order for a potential tenant or buyer to feel comfortable about the decision they make, early market research & education is paramount. Generally, no one wants to make an important decision without adequate information.
Comfortable decisions are made after educating oneself in the specific area that must be decided upon. In real estate, markets can change very quickly. I’m reminded of an incident where a tenant was reviewing a property brochure that was only two months old, yet the lease rate had increased by 20 percent within that two month period.
Once suites started leasing up, the vacancy rate declined and the rents went up: simple effect of supply and demand.
Fortunately, my client and I started the education process early on so when an actual decision needs to be made, they would be educated and feel comfortable about the decision they make. As the market continues to tighten, astute investors and tenants will need to react quickly when an opportunity arises.
By Randolph T. Mason, CCIM, SIOR, Partner, Commercial Realty