The dramatic ups and downs of the stock market have put some investors into a spot where they are rethinking what portion of their portfolios they want to keep in anything related to the Dow or the Nasdaq.
The problem is that bonds and whatnot aren't doing very well, either, so they aren't that attractive of a place to park money outside of the stock market.
Other analysts agree:
On one hand, the tenants have enjoyed relatively low rental rates, which they see as a positive. On the other hand, commercial real estate from the owner’s perspective may be viewed as a less risky investment alternative. The volatility of the stock market doesn’t really matter: tenants still pay rent. So that can be perceived as relatively safe.
With more money flowing in to commercial real estate in Denver, there's one thing that's sure to happen as a result, and that is that rents will probably start creeping up again as investors try to get more return on their investments.
The other thing that happens is that leases get more complicated.
With both of those trends, we recommend that if you are thinking about negotiating or renegotiating a lease that you don't try to do it alone. With a tenant representative, you'll be better able to negotiate the terms that work for you and your business, and that are not tied to any of the ups and downs of the Dow Jones Industrial Average.
If you'd like to talk to someone, please contact us.