Flexibility Hallmark of Latest Tenant Concessions

WASHINGTON, DC-It’s a tenant’s market in the DC area. Still. For a period there, it appeared to patiently waiting landlords that the pendulum might be swinging back in their direction. Vacancy stats for the third quarter, along with a steady drumbeat of discouraging macroeconomic and political trends, killed that illusion. In short, leasing volume was down 40% in Q3 year over year, Tom Fulcher, EVP and Co regional manager of Studley, tells GlobeSt.com. “It was the total leasing activity we have seen for the DC area since the peak of the recession. Demand is just now there right now.”

“Q3 solidified the perception for a lot of landlords that it will be a tenant’s market for some time,” Chris Volney, research manager for Studley tells GlobeSt.com. “There is now a willingness on the part of landlords that maybe wasn’t there a year ago to negotiate more with tenants. They are coming to terms with the fact that there are not as many tenants out there.”