WHERE DO YOU STAND ON CONCESSIONS?

A rising tide doesn't always raise all boats. Sometimes itjust creeps higher around your neck. That's the somewhat skittishtake on the current leasing market expressed by 230 voters in LastWeek's Quick Poll. Some 43% said that when it comes to concessions,they're Standing Pat--But It's Getting Tougher, implying that arising tide of concessions will eventually sweep their resolveaway. For a sinking 38%, Tenants Have Us Where They Want Us.Contrast that to the cavalier 19% Who Don't Need No StinkingConcessions. Commentator Andrew G. Simon, Manhattan-based executivevice president of NAI Global of New York, thinks this happy handfulwon't be smiling for long. Here's why:

"These numbers don't surprise me. The market, whether you'retalking about leasing or investment sales, is undergoing arepricing. When the market begins to soften on the leasing sideowners will be willing to concede additional free rent or workcontributions to tenant fit-outs, which they can sell to the tenantas reducing their overall occupancy and net effective rent. At thesame time, they can show the face rent to their lenders that theyneed to satisfy their loan requirements.