Owners Of Not-Quite-Trophy Buildings Getting More Malleable To Compete For Tenants

Office leasing accelerated in a big way at the end of last year, with space in the crème de la crème of real estate being snapped up by tenants eager to return to the office.

Now, with that inventory dwindling, companies seeking office space are turning toward the tier just below, where there is still near-record vacancy. With lenders watching closely, the pressure to fill space is more intense than ever — as is the competition. That means bending more to the will of the tenant.

“Landlords don`t care for these flexibility options because it inevitably ties them up. They`re dealing with a vertical jigsaw puzzle,” Cushman & Wakefield Vice Chair David Hoffman said. “It’s just the lesser of the evils.” ...

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RSK: There is hope for the office sector and properties in the lower class A & B categories.