As vacancies continue to increase across product types, owners may want to consider becoming more open-minded to offering their vacant space, on a short term basis. With uncertainty in the economy, tenants don’t want to make an initial long term commitment. Owners need to be reminded. The market determines the demand, regardless of owner’s desires. Listen to what the market wants. One year terms or less may become more the trend, as commercial building owners get tired of seeing empty space with no cash flow. If managed properly, offering short term space may be a great differentiator in a competitive market. It may also help secure a long term tenant. If the tenant is comfortable with the short term space and business is going well, it’s only natural they will want to stay with greater confidence to sign on, long term.
Source: Tony Casalena, CCIM