The last year has been challenging for businesses. In many instances, income has dwindled, which has made it difficult to obtain and maintain commercial real estate. But now that the economy is bouncing back, the commercial real estate market is heating up.
The current state of the commercial real estate market
The first quarter of 2021 saw a 53% increase in real estate broker confidence compared to what it was in December 2020. There are a number of reasons for this increased confidence. To start, businesses are reopening, which means they are able to generate more revenue. This, in turn, allows them to seek out commercial real estate and pay for it accordingly. In Manhattan alone, this means that office leasing increased by more than 56% compared to April 2020. Experts hope that this trend will continue well into 2021 and beyond.
Plenty of room for improvement
Although things seem to be improving in New York’s commercial real estate market, it’s still got a lot of room for growth. In fact, the amount of office space available for leasing is still sky high. About 17% of all office space is still available, and the amount of available commercial real estate has grown by more than 70% since March 2020.
What this means for you
The current state of the commercial real estate market means two things for you. First, even though the market is quickly improving, don’t feel rushed into a lease agreement. Instead, know your options and take the time needed to carefully consider them before you sign off on a lease. Second, given the amount of availability, you probably have room for negotiation. Don’t be afraid to carefully scrutinize a proposed lease agreement to identify areas where you can request modifications that are advantageous to you and your business.
There can be a lot at stake in these matters. After all, your lease agreement can have tremendous financial implications and can set the boundaries of your business operations. If you’d like assistance in scrutinizing and negotiating your lease agreement, then you may want consult an experienced commercial real estate law firm like ours.