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Tenants evaluating only the rental rate when comparing a Class A building ($31/sf) to a Class B building ($28/sf) may be making an error much more costly than the 10% discount.

In today’s office market, landlords are providing generous improvement allowances to fund the renovation of office space for new and renewing tenants. The amount depends on many factors including the credit worthiness of the tenant, the terms in the lease and the total square footage of the space. Generally, a landlord offers more for larger tenants with a longer lease term (seven years or more).

Tenants who find themselves in a situation where they need to consider buying out of their existing office lease often do so for various reasons. In this article, we will explore the three main motives behind such a decision and discuss the potential advantages and considerations for tenants. Additionally, we will delve into the implications for landlords, including their strategies to avoid extended vacancies and the benefits they can offer to tenants in the process.

Most tenants understand the impact of office rent on their bottom line and try to reduce it, often by negotiation. However, they frequently overlook free rent, a common concession in the current real estate market.

Tenants just evaluating the rental rate when comparing building A ($22/sf) to building B ($20/sf) may be making an error much more costly than a 10% discount. We recommend determining the size of your office as the first step in a renewal or relocation process.

When landlords pay for modifications to their existing or new tenants’ space, they will charge a higher rent than if a tenant takes the space in its “as is” condition. Unfortunately, for a tenant trying to assess a fair rent to pay based on certain alterations, the impact on the rent is more complicated than, for instance, the amortization of a loan.

First, determine how your proposed layout will differ from a typical layout and whether or not your improvements would be favored by other tenants. The more your proposed changes differ from the norm, the more they will be considered a special-purpose build-out and decrease your negotiating leverage.

We all recognize this is a crisis unlike any other that has impacted our businesses. Never-the-less, during this or any

With late October seeing record numbers of daily new cases of COVID-19, it is probably too early to tell how the pandemic will play out and what its impact will be on local economies.

Landlords and commercial real estate sellers have plenty of competi- tion in today’s retail and office market. The work-from-home move- ment’s impact on office space and the one-two punch of online retailing and COIV-19 impact on retail space have left many owners swapping tenant signage for “For Lease/Sale” signage.

It is imperative for tenants to evaluate moving costs when considering office space relocation. Some expenses, such as the cost of the physical move and IT set-up are obvious line items in a budget. However, many less apparent expenses present themselves throughout the transition process. Over the years we have seen items consistently causing companies to underestimate their moving budgets.

A key fault line of many organizations is the intersection between business and friendship. Often tenant friendships with landlords become business relationships as well as vice versa. When you work with someone on a common goal or struggle in a business environment, you learn a lot about people. You often bond together, and that bond affects future decisions … as it should.

An office space search provides the opportunity to relocate to a new building or complex with an abundance of amenities including large indoor and outdoor common/gathering areas, an on-site conference room, fitness center, child day care, concierge, shuttle to train, covered and reserved parking, storage space, and even boat slips. The current economy, high vacancy rate and abundance of furnished sublease space gives area companies an option to upgrade to a luxury location packed with amenities.

Despite some flickering signs of growth, today’s Fairfield County office market continues to have a high vacancy rate. Many submarkets such as Norwalk and Stamford have been affected due to decreased demand. As a result, there are a slew of properties available at rental rates 15-30% lower than they were two years ago. This includes direct space as well as subleases at greatly reduced rents, with furniture included!

A dramatic shift is transforming office space design. Office size based on title and sitting at a desk from 9-to-5 have become obsolete. Some of the latest trends are listed below:Redistribution: Office space was traditionally assigned based on seniority in the company. Today, many companies are providing space based on need: executives are sacrificing