WHERE DO YOU STAND ON CONCESSIONS?

Last week's national GlobeSt.com poll addressed thesometimes-controversial issue of where landlords stand onconcessions. By the end of the week 43% of respondents said theywere standing pat, but that it was getting tough to do so. 38% ofrespondents admitted that tenants had them right where they wanted,while 19% answered that they did not need concessions. LarryRichey, a senior managing director for the state of Florida withCushman & Wakefield, spoke with GlobeSt.com to help readers geta sense of what the office market in the state of Florida is nowexperience in terms of concessions.

"With rapidly increasing vacancy rates across the state, from10.6% at the end of 2006 to 14.3% at the end of the first quarterof 2008, concessions are beginning to be much more prevalent. Agreat deal of sublease space has been placed on the market andthere's as much as three million square feet of shadow spacestatewide. For landlords to be competitive with sublease space,concessions are becoming necessary. Of course, this varies by MSAand submarkets within any MSA.