The report says many landlords are now offering first-year "teaser" rates that are significantly below market to entice tenants into signing a lease. Then, the landlords increase rents during the terms of the lease.
Other enticements that are also common include: rental abatements during the early part of a lease, free parking and additional tenant improvements, according to the Grubb & Ellis report.
Many prospective tenants find such good deals in this market that they want to lock in long-term leases. However, landlords typically aren't so eager to lock in low rates for the long-term. They prefer short-term deals at today's low rates, with hopes of raising rents when there is a better economy and therefore more demand from tenants.
"In order for the parties to agree, termination clauses after the third, fifth or seventh year of leases of 10-year or more are becoming more prevalent," the Grubb & Ellis report notes.
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