We read an article recently on whether to buy or lease office space. This brought us back to one of our previous blogs, “Is it Better to Buy or Lease Commercial Real Estate?” This new article, from BisNow, highlights the factors and considerations a person should make before deciding whether leasing office space or buying office space for their company is the better option.
From our previous blog on the topic:
“Clients ask me this question quite a bit. The answer depends on many factors and it is different for each client depending upon the current market parameters and their unique circumstances.
Right now, the California commercial real estate market for retail, office and industrial properties for sale and for lease in which I specialize in is pretty hot and has been for many years. Prices for both sales and leasing have exceeded all-time highs historically in most California cities especially in Southern California where most of my transactions take place. So, when prices are high it means that it’s not a good time to buy or lease, right? Not necessarily. And what if you have a business and have to do one or the other, which one do you choose?”
BisNow’s article agrees with the consideration of the state that you’re living in:
“One factor companies should consider is the state of the office market. Conditions like vacancies and interest rates can impact the decision to buy or rent. The company’s level of flexibility in terms of timing can also be important. For example, a company that needs to move immediately would have different considerations and more pressure than a company that has time to weigh these options. Many businesses also work alongside a real estate representative who understands the company’s needs and can help make the right call. This representative works to find a location that fits the company’s needs and negotiates a reasonable deal.”
If you want to learn more about your specific situation and whether you should be leasing or buying a space, contact David Massie at DJM Commercial at 805-217-0791 or firstname.lastname@example.org – we can help! For more details from BisNow, read the full article here.
We recently read an article in Connect Commercial Real Estate highlighting how national office vacancy continues to climb. Rent growth, on the other hand, has headed into an incline in the last two quarters. This means that there is potential for tenants to lease office space for less than before.
From Connect Commercial Real Estate:
“The national office vacancy rate climbed 0.1% to 16.6% in the second quarter, according to research by Reis. Vacancy increased in 39 of 79 metros in the quarter, with just two metros posting a decline in effective rent, as the gap between the “better” office markets and lagging ones widens and gets more pronounced. […] Rent growth, in contrast, was healthier in the last two quarters than in the previous seven, as a number of metros had rent growth of 1% or more in the quarter and 4% for the year. The stronger metros helped buoy the national average more so than in previous quarters.”
This article is a great example of how a landlord rents are falling. If you want to learn how to lease space for less as a tenant, contact David Massie at DJM Commercial at 805-217-0791 or email@example.com – we can help! For more details, read the full article here.
We recently read an article in Bis Now highlighting how small retailers are finding their opening while old giants shrink. The general premise is that retail landlords are willing, more and more, to take on smaller retailers by dividing up their spaces and leasing them out where they can instead of holding off for the big fish that probably isn’t coming.
From Bis Now:
“As the country’s largest retailers struggle to adapt to 21st century consumer demands, retail landlords are increasingly willing to slice up their space, take on riskier tenant options and offer flexible lease terms — and smaller retailers are reaping the benefits. […] The market has been marred with a number of big-name store closures in the city. But brokers said the conditions are paving the way for smaller retailers to get their foot in the door, as increasingly desperate landlords stop holding out for the national operators with established track records.”
This article is a great example of how a retail tenant can save on rent right now. Even better news? We can help. Contact David Massie at 805-217-0791 or firstname.lastname@example.org if you are a retail tenant and you want to find a great deal on a retail space like mentioned in the article. For more details, read the full article here.