Industrial – Tenants Perspective

The industrial market remains challenging due to the large quantity of availabilities, both North and South. As a means to remedy this very problem and attract deals to their vacant buildings, Landlords are offering free rent and generous finish-out packages to potential Tenants. Tenants on the other hand seem to be using quotes from new buildings to negotiate a better rate in their existing spaces.

We believe we have reached the bottom of this recession, as it simply could not get any worse. However, unemployment statistics are still a concern for a sustainable recovery and for positive absorption in the commercial real estate sector. As the economy recovers, the industrial real estate market will recover as it typically lags behind approximately six to 12 months.

While we still have several hurdles to overcome as the economy begins its slow recovery, Tenant’s should take full advantage of the opportunity and incentives that are out there.