WASHINGTON, DC—Securing encumbered space in a lease is a concession that still has legs for small-sized tenants, JLL’s Creighton J. Armstrong tells GlobeSt.com. It is a fairly commonplace negotiating point for large tenants, but for a small tenant to secure it usually requires a certain amount of aggressiveness and a creative broker, he says.

Within those constraints, small tenants were able to get leases with encumbered space during the depth of the recession. Now, as the office leasing market slowly improves – emphasis on the “slowly” – it is debateable in some quarters whether landlords will continue to bend on this point. For forward-looking landlords, though, it is becoming clear that concessions can pay off, which is one reason why Armstrong thinks the market will continue to see them in lease negotiations.

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