This is Part II of a two-part series.
[IMGCAP(1)]NEW YORK CITY-According to Part I ofGlobeSt.com's two-part series on owner concessions, industrysources agreed with Studley's 2008 Effective Rent Index Report,which said that concessions are rising. Sources agreed thatconcessions are directly affected by leasing slowdowns. Those sameindustry watchers reveal to GlobeSt.com the benefits of offeringpackages instead of raising rents. They also explain that at somepoint, owners may be forced to step back and lower rents instead ofcontinuing to offer concessions.
[IMGCAP(3)]Bradley Kaufman, a partner and leasing specialist inthe real estate group at locally based law firm Pryor Cashman LLP,tells GlobeSt.com that owners will step back and lower rents whenit looks like the light at the end of the tunnel is not in site."If a landlord can hold out for six months and the market will headback up, then they do not look to lower rents, however if thelandlord feels that we are in it for the long haul or if thesublease market picks up, they might have to rethink things."
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
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
