Office Space for Lease: Converting from a Landlord's Market to a Tenant's Market
March 17, 15
The landlord's market in Houston is changing to a tenant's market as businesses deal with the oil price downturn, according to a recent post from the Houston Business Journal. If you have office space for lease in the area, what does this mean for you?
You may have to drop your price. In addition to more than 17 million square feet of new construction, with 6 million not yet leased, there are 1.2 million square feet of sublease space that was made available in January alone, the post stated. This sublease total represents 2.6 percent of all the available space. When sublease space reaches 3 percent, those in the real estate industry start looking for a decrease in rental rates.
You may have to offer more concessions. While there hasn't really been a decrease in price noted since the oil downturn, the post stated, what has been noted is an increase in concessions that landlords are offering in order to get their space leased.
That said, the post goes on to note that the price decrease and the impact to landlords with office space for lease isn't expected to be too severe. However, as the market changes, it's important to increase the desirability of your space and to make sure that it is being properly marketed. LandPark Commercial can help you with these issues. In addition to property management services, we provide landlord representation that includes aggressive marketing strategies and extensive networking to ensure you of the best opportunity for great tenants and a strong rate. For more information, contact us.