We hear a lot of doom and gloom these days in commercial real estate leasing. However, behind the scenes, savvy office and retail tenants are opening new locations. Commercial leases are typically five years in length...sometimes even longer. In this economic climate, a tenant can get a very favorable rental rate and a lot of other concessions that it couldn't have achieved in years past. As the economy improves, those rates can remain largely locked in throughout the lease term. As that happens, you'll have low occupancy costs, which can be crucial in maintaining and increasing profitability.
Also, construction costs are down an average of 20 percent in most areas. That means a tremendous savings in the cost of tenant improvements within your space. If you have a strong balance sheet and can achieve profitablility based upon sales volumes that you are achieving today, then a newcommercial real estate lease might make a lot of sense for your company at this time.
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