"Owners can be more conservative because the office market is sotight," David B. Voell, a senior director in Cushman &Wakefield's local office, tells GlobeSt.com. They became especiallycautious after tech stocks hit the skids last spring.

Prospective renters may now be asked to sign longer-term leases,as well as put down bigger security deposits and even letters ofcredit as proof they can fulfill their lease obligations. Buildingmanagements are especially picky if they have to spend $25-$30 psfto get space ready for occupancy, says Voell. Tenants have a betterchance of making a deal if they can use existing officelayouts.

It's not only the techies that are finding space-shopping morechallenging, notes David J. Pawlowski, director of brokerageoperations at Colliers International in Fort Lauderdale. "Anystartup will have problems in the current market," Pawlowski says,"but that doesn't mean they can't find perfectly fine footage."

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
NOT FOR REPRINT

© 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.