Only 15 months ago, developers were scurrying to put up newtowers to feed the frenzied demand. Vacancies were between 1% and2%, rents were rapidly escalating, and new leases were beingmeasured in the tens of thousands of square feet. Now, Clise says,developers and owners are "hunkered down and hoping they're not tooleveraged."

Today's strategy for landlords, according to Clise, is a mix ofefficiency and working hard to get vacant spaces filled. "Thatmeans making deals that produce rents -- even if they're not thebest deals," he says. "It's better to have something than emptyspace."

While Clise says some landlords are becoming more flexible insigning tenants, it's not as prevalent as he expects it will bebecause with the majority of sublets in the market there is stillsomeone paying the rent.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.