`I Thought It Was A Mistake`: Office Lease Expirations Are Lining Up, With Tenants In Driver`s Seat

It’s an office tenant’s world. Everyone else is just living in it.

On the heels of four years of hard times for office owners, a new wave of lease expirations is on its way. Tenants have leverage like never before as they negotiate the leases that will influence landlords’ balance sheets for years to come.

“What we`re seeing now, in the last 24 months, I`ve never seen before,” said Atlas Capital Advisors Managing Principal Serge Vishmid, a tenant rep specialist. “There were times when tenants had the upper hand, but it`s not like this.”...

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RSK: A few things here; trophy office space will lease and usually at asking rates; landlords do not have enough money in the lease to do improvements. Example, a tenant of ours wanted a few more electric outlets in her space. Each outlet would cost north of $500. For her 300 sg. ft at $13 annually gross and one a one year lease, well it doesn`t make sense for us to do it. If she wants it we told her she would have to pay for it or up her rent to cover it. She bought an extension cord....and it was not like there were not enough outlets in the suite. I do not think tenantsunderstad the construction costs at this time are out of sight.