According to a recent report, the Florida commercial real estate market is performing quite well. In fact, it has been said that occupancy rates for existing and new structures in 2014 were the highest seen over the last decade. How is this good for someone who wants to secure a commercial real estate lease?
One would think that it would be difficult to find a great deal at a high traffic location when there is demand for commercial property rentals. However, according to the International Council of Shopping Centers (ICSC), leasing rates on retail properties have remained relatively low. Why is this the case? There may be a number of reasons, one of which may be that property owners can attract new businesses to their properties by keeping rates competitive, yet affordable.
There are many other things that property owners may do in order to help fill retail space vacancies. According to ICSC, fewer new mall developments are in the works, but renovations are being completed to existing structures in order ensure that these commercial spaces are up to date with the latest technologies used by business owners. Along with those buildings that are under renovation, Orlando is seeing quite a few new commercial retail spaces also being developed. Between new and existing commercial properties, the Orlando area is seeing vacancy rates at a low of 6.5 percent.
With low rental rates and commercial property owners working to meet the demands of potential occupants, this may be a good time to negotiate a commercial real estate lease in Florida. Owners will, obviously, prepare contracts that are in their best interests, but potential tenants do have the ability to make requests specific for their needs. Before signing a rental agreement, it may be in one’s best interests to review the contact with legal counsel in order to ensure it is not only fair, but also helps a business owner meet his or her goals. Further assistance is available to help with negotiating desired terms and resolving any other contract issues.
Source: orlandosentinel.com, “Orlando retail grows but rents sink, ICSC report says“, Paul Brinkmann, Aug. 31, 2015