In case you missed them, here are the top five stories from The Tenant Advisor in June.
Law Firms Look Harder at Their Real Estate
Many organizations are creating new workplace environments that use real estate more efficiently and Law Firms are no exception. New metrics show a decline of more than 70 rentable square feet per attorney since 2000. The most recent recession has caused, or at least accelerated, the evaluation by law firms of how they utilize leased space. Read the full article.
A New Occupancy Rate in Lease Negotiations
In the past if you were to associate “occupancy rate” with an office lease negotiation what would have come to mind are the occupancy rate of the building or submarket and the relative negotiation leverage of either the tenant or building owner based on current market conditions. While this will always be a factor as supply and demand plays a dominant role in determining market rents, there is another occupancy rate creeping into lease negotiations. Read the full article.
Back to the Future
In 1982, I had yet to embark on my commercial real estate career as I was still an undergraduate at The University of Texas. Then a show about a powerful family in the oil & gas business (Dallas) was one of the most popular on television and energy or real estate was the chosen career path of many young college undergraduates in Texas. In those days construction cranes dotted the Houston skyline. Today, the television show “Dallas” is back and so is speculative office development in Houston driven by a healthy energy industry. Looking back, like 30 year ago, Energy and Real Estate now looks like a place to be in Houston and the “Back to the Future” theme seems very real. Read the full article.
Envisioning the Future of Business and the Changing Nature of Work
CoreNet Global, the world’s leading association of corporate real estate (CRE) and workplace professionals, revealed results from its Corporate Real Estate 2020 transformational research initiative at the recent San Diego Global Summit. Overall, Corporate Real Estate 2020 examines a wide range of external and macro-economic, societal, political and other influences, triangulating these drivers against trends affecting the globally networked enterprise and CRE itself. Read the full article.
The Under-Water Office Building Owner
During any office lease negotiation it is standard practice for a building owner to request financial statements from the prospective tenant, as any prudent Landlord will underwrite the creditworthiness of a company for the ability to meet the financial obligations of the lease. How much the Landlord will invest in the transaction (i.e. leasehold improvements, design fees, commissions, etc.) is impacted by the tenant’s financial stability. In today’s market, tenant’s that are looking for new space should be asking their tenant representatives to provide some background on the financial strength of the Landlord. Read the full article.