In the past two or three years of leasing office space in this market, I’ve become a “Yes Man.” Well, more like a defeated “OK” man.
It’s no secret that this market has been hard on everybody. But for a landlord, a recessionary market is synonymous with a “concessionary market.” To stay competitive, most owners got cheap and begrudgingly generous to make deals—more free rent, more options, more allowances, more, more, more.
It seems like the only group handing out more concessions over the past few years has been Jerry World, the State Fair, and the Ballpark in Arlington.
But recently the winds have shifted in some areas of North Texas, and we’re conceding less and less. Free rent is coming down. The ridiculous subjective allowance is diminishing. Options are fewer and farther between. I’m finding myself saying “No” more often—and meaning it.
No, you can’t get another month of free rent. No, we’re not going to give you an out after the nth year. And no, I’m not going to pay for your move.
Don’t get me wrong, it’s still a tenant’s market. But it feels good to be climbing back to a more level playing field. Deals are starting to feel more like deals again—mutually beneficial.
Mace McClatchy is principal of Holt Lunsford Commercial‘s Dallas office division. Contact him at email@example.com.