Rates are Going Up

By
Commercial Real Estate Agent with REATA Commercial Realty, Inc. Texas 537349

While searching for office space in west Plano on behalf of a software development company, I noticed that rental rates have gone up considerably. Class A office buildings are now quoting rates in the upper half of the $20’s plus electric.

My favorite office building is Granite Park III which is quoting a whopping $29.50 plus electric. Many others are in the $26.00 range. Most class B buildings are over $20.00 plus electric.

So while the media is still sounding the alarm about how bad the economy is, landlords are quietly raising rental rates, reducing the amount of free rent they are giving and taking away other concessions.

Another landlord refused to give a renewal option on a 6,000 SF tenant. That’s a first for me. Another didn’t want to provide any improvements to the space for a renewal other than paint and shampooing the carpets.  A third pulled its proposal saying that we waited too long and rates were going up. He also said they wouldn’t do a 3-year term. It’s 5 years or longer. Period.

What should a tenant do?

If your lease expires in the next 12 – 18 months, you should talk to your corporate real estate advisor (and that should be REATA, of course) to discuss the possibility of renewing early if you like the building you are in. While the rate may be higher than you are paying now, it may not be as high as what it will be if you wait until your expiration date.

Please call me if you would like to discuss this further.

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_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX  75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

 

 

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Rainmaker
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Jeff Jensen
The Federal Savings Bank/Lending in 50 states - Greenwich, CT

Wow that sounds like a pretty agressive tactics by landlords in your area.  The must have a lot of demand.

Mar 22, 2012 07:49 AM #1
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Rainmaker
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Bob Gibbons

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