San Diego, CA -- (SBWIRE) -- 07/11/2011 -- SearchCommercialSpace.com is well-positioned to capitalize on the opportunities for tenants in commercial real estate as the economic recovery stutters due to lost jobs. We hold a solid network of local tenant representation professionals throughout the United States & Canada ready to assist you.
We have a wide variety of commercial property listings in several major USA and Canadian cities including Los Angeles, San Francisco, San Jose, Sacramento, Irvine, Chicago, Dallas/Fort Worth, New York, Washington DC, Baltimore, Atlanta, Seattle, Boston, Toronto, Montreal, Vancouver and others.
"Applications for unemployment benefits increased 9,000 in the week ended June 18, 2011 to 429,000, Labor Department figures according to Bloomberg News. The level of claims exceeded the highest estimate in a Bloomberg News survey in which the median projection called for 415,000 filings. The Bloomberg Consumer Comfort Index dropped to minus 44.9 last week from minus 44. Stocks fell and Treasury securities rose as the figures, combined with a drop in new-home sales, showed the recovery was struggling to gain momentum.
On June 23, 2011, Bloomberg News reported, "More Americans than forecast filed first-time jobless claims which highlights Federal Reserve Chairman Ben S. Bernanke’s concern that the slowdown in the economy may persist. Bernanke said that joblessness increased to 9% percent and weakness in housing show the economy’s "headwinds” may be stronger than Fed policy makers initially estimated."
Being that commercial real estate is a lagging economic indicator which generally trails other economic indicators by 12-24 months, it is little to no surprise that in only a select few markets have shown signs of economic recovery such as Washington DC, instigated by Government contract spending and Silicon Valley where companies such as Google, Yahoo, Cisco Systems, releasing new technology flourish.
In most other places throughout the US such as Los Angeles, Chicago, San Francisco, Irvine, San Diego, Sacramento, Dallas and Atlanta, it remains a Tenant's market and an especially good time for Tenants to exercise their leverage in negotiations with Landlords to reduce rent. For those who relocate will not only pay less rent, they will also secure "free rent" and with the assistance of a Tenant Represenative have the Landlord cover cost of tenant improvements and even the move costs.
Opportunities for Tenants.
The window is still open for tenants in most markets to secure lower lease rates and we continue to encourage companies to be proactive in negotiations. In some instances, one or two-year extensions are available as landlords do not anticipate a better office and real estate space market until 2013.
Because commercial office and warehouse space rental rates are at an all-time low, we do not recommend a short-term extension strategy at this time, unless the business plan simply cannot support a longer commitment. Tenants need to weigh flexibility versus likely rent hikes in three or four years. In other instances, tenants, especially those with strong financial, have an opportunity to lock into leases of five years or more will benefit the most. Finally, given low interest rates and changes in accounting practices relating to leasing, this may be an excellent time for Tenants to buy real estate.
For a free report on availability and rental rates or to locate a Tenant Representative, feel free to contact us at: (877) 750-3926.
11526 Sorrento Valley Road, Suite J
San Diego, California 92121