Current office vacancy rates in certain markets are helping tenants gain more favorable terms when renewing their leases. According to first quarter market statistics published by the CoStar Group, total vacancy in the CBD is 10.7% and in the Suburban market a whopping 17%. The highest concentration of vacancies is in the Class A & B Markets.
As a result, many landlords are working hard to retain existing tenants. This trend is giving existing tenants an advantage in negotiations for renewals and extensions to their existing leases. Even businesses with a year or more to run on their current lease are finding landlords are willing to entertain negotiations in advance of lease expiration.
So, how do you know if this works in your favor? Look at the market reports from CoStar.