Jack Thompson, a senior manager in real estate operations, tells GlobeSt.com that more companies are resorting to tactics such as switching electricity providers thanks to deregulation or hoteling as a means to lower costs and still grow business. It's a "more for less" strategy being forced by economic conditions.
DFW building owners, on the other hand, are striking some pretty good deals so they can hold onto what they've got, namely tenants. Thompson says the downside to that and a common complaint in the local brokerage community is some out-of-state owners are pushing deals at below-market rates and claiming they represent a market trend. "They are giving away too much," he believes. "There is an education gap out there."
Jim Berry, Deloitte & Touche partner in charge of real estate services in Dallas, says business is up as companies turn to consultants to help develop innovative ways to contain costs. More companies are staying put and subleasing part of their office space until the timing's right to go forward on growth plans.
Berry says Dallas is feeling some heat from incentives dangled before the Victory development as others in the brokerage community air concerns that there won't be enough left over for their wheeling and dealing. The truth will be in the telling as new mayor, Laura Miller, and her administration push a well-honed, hard-line attitude for only strategic incentives.
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