As the San Diego commercial leasing market continues to struggle, opportunities abound for young and growing businesses to obtain favorable leasing terms. With the abundance of “For Lease” signs reminding folks of the current recession, commercial property owners are anxious to fill space and are willing to negotiate to do so.
Businesses and commercial property owners alike would do well to look ahead, and consult with their business attorney regarding their options. Whether the economy has bottomed out is a question that will remain unanswered for some time. However, it appears that the economy is in that soft zone somewhere in the bottom of the trough and there isn’t much room left to bottom out on. Fear of a depression with bread lines extending around the corners of major metropolises stifles productivity and investment. Such fear is almost certainly unwarranted. These are the moments that entrepreneurs seize! They don’t seek to weather the worst case scenario. They see opportunities and commercial property owners benefit from their aggressiveness. So does the economy.
A strong relationship between the commercial property owner and tenant is itself a valuable asset. The property owner benefits from successful business tenants. They are long term reliable tenants that pay their rent on time and, depending on the lease, pay additional monies based on profits or sales. The business benefits immeasurably from positioning itself in the right location in the right community with a structure that has the right physical properties, and from favorable lease terms. Working closely with their attorneys to draft mutually beneficial lease terms provides much needed security to both the landlord and tenant. Each side should take a hard look at their short and long term business goals, their immediate needs, and the unique fit between them. Most importantly, they shouldn’t be afraid to step out of the box and look to creative lease terms that benefit both sides. Property owners are presently more willing to entertain new and innovative proposals even with existing tenants.
Finding that “it” location for a new or growing business is priceless. Filling space for the commercial property owner is just as important. Whether you are a new or existing business or the owner of commercial property, an aggressive approach to finding the right match will help you over this economic hump and might just be the start of a thriving or rejuvenated business.