One of the most prevalent drivers of our economy in the last three years has been the collective uncertainty of the business world. It doesn't have its own metric or symbol on Wall Street but it nevertheless factors into countless decisions made in offices around the country every day.
Now that some signs of positive growth have matured from one-month anomalies to multi-month trends, some may feel that the weight of uncertainty is starting to lift. Nevertheless, it is critical that decisions about Denver corporate office leasing remain closely tied to your business' performance, not an economy that may be slowly awakening. You still must consider your future needs to expand or contract and have a strategy in place for each of those scenarios.
A Denver tenant's market has allowed companies to secure discounts on office space that will be providing years of substantial savings. Those opportunities remain available in many markets and should continue to be pursued in spite of news that construction lending is on the rise, which may prompt some to wait on stalled projects or buildings planned in the most desired locations. Savings now far outweigh savings later, especially when carried over the long-term.
Moreover, Denver companies seeking office space in discounted buildings need to remain diligent in examining the financial wherewithal of their potential landlord, a practice that has become very necessary in the wake of the recession. The commercial mortgage crisis is not over; thousands of prominent commercial property owners around the country remain in trouble. Clauses such as non-disturbance and attornment agreements need to be prominent facets of any lease being signed. Attractive space in a foreclosed building is usually not attractive space.
Denver Commercial office tenants should certainly consider "blend and extend" strategies to take advantage of market conditions and remain in their current buildings. Your present landlord, provided the relationship has been positive, is likely best positioned to make you the most attractive offer. The benefits of not having to physically relocate and impact operations should be considered among the savings. Your ProTenant representative can help you fully evaluate these decisions.
Positive trends may be showing up in talk shows and Web page headlines. However, commercial office leasing remains a prime opportunity for businesses to continue stabilizing operations based on the silver lining of a down economy. Don't be tempted otherwise.
Contact ProTenant to have one of our advisors help you in the process of making the best decision in your commercial office leasing options.