Vacant Homes Trumped by Metro Area Empty Office Space

It makes sense that, with all the For Sale signs on front lawns of homes, we begin to see mass vacancy and For Lease signs in the nation’s neighborhood malls and office buildings.

Commercial property is predicted to be hit next by the recession.  It appears to already have begun, however.  Throughout major cities, we see existing commercial space available for lease.  Some entire strip malls have been abandoned.

In response to this spreading trend, landlords in the Boston metro area are looking for creative ways to draw and keep tenants.

Dennis Clarke, owner of Cummings Properties LLC, is offering a 30 percent discount on rent at TradeCenter 128 in Woburn.  At least, he was earlier this year when he noted a 52 percent vacancy.  Feeling the downturn of years of escalating rents and big business searching for limited space, Clarke and other landlords like him are looking for ways to entice businesses into leasing their available space.

So, what else are landlords doing to fill the vacant space?  Lower rent is one method; however, other strategies are offering no rent for a period of time, customizing office space, paying higher commission to real estate brokers, negotiating lower rent for longer leases and any other creative measures they can think of to bring in tenants.

One of the factors that caused much of the vacant office space we see available today is the great demand for it in the past several years.  Big business was expanding and looking for space in other cities, Boston is no exception.  Office space has been overbuilt, and now we’re beginning to see vacancies.

Clarke is not alone in his negotiations.  Many other area landlords are doing the same.  Nordic Properties, Inc. and Nordblom Co. and other area office building owners have lowered rent by up to $10 per square foot.

Real estate experts predict that the trend of seeing an overabundance of office space available will level out in 2010.

It makes sense that, with all the For Sale signs on front lawns of homes, we begin to see mass vacancy and For Lease signs in the nation’s neighborhood malls and office buildings.

Commercial property is predicted to be hit next by the recession. It appears to already have begun, however. Throughout major cities, we see existing commercial space available for lease. Some entire strip malls have been abandoned.

In response to this spreading trend, landlords in the Boston metro area are looking for creative ways to draw and keep tenants.

Dennis Clarke, owner of Cummings Properties LLC, is offering a 30 percent discount on rent at TradeCenter 128 in Woburn. At least, he was earlier this year when he noted a 52 percent vacancy. Feeling the downturn of years of escalating rents and big business searching for limited space, Clarke and other landlords like him are looking for ways to entice businesses into leasing their available space.

So, what else are landlords doing to fill the vacant space? Lower rent is one method; however, other strategies are offering no rent for a period of time, customizing office space, paying higher commission to real estate brokers, negotiating lower rent for longer leases and any other creative measures they can think of to bring in tenants.

One of the factors that caused much of the vacant office space we see available today is the great demand for it in the past several years. Big business was expanding and looking for space in other cities, Boston is no exception. Office space has been overbuilt, and now we’re beginning to see vacancies.

Clarke is not alone in his negotiations. Many other area landlords are doing the same. Nordic Properties, Inc. and Nordblom Co. and other area office building owners have lowered rent by up to $10 per square foot.

Real estate experts predict that the trend of seeing an overabundance of office space available will level out in 2010.

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