Carmen Commercial Real Estate - Office Vacancy Down. Prices Up? ?

As reported by commercial real estate industry publications during the past year as well as posts to this blog, the office vacancy rates in the greater Indianapolis area continue to drop as the net absorption of space has remained consistent, while essentially no new construction has been added to the market.

CoStar, the world?s leading commercial real estate data service bureau, reported today that the Indianapolis market vacancy rate has dropped to 9.9% during the second quarter of 2012, which is the lowest vacancy rate for this market in over five years, and lower than the national vacancy rate of 12.1%.? However, the change is not consistent for all Indianapolis submarkets across the board.? For example, Indianapolis? CBD has actually seen a recent increase in vacancy, as reported in the Indianapolis Star.? Yet, the City?s largest office market, north suburban Indianapolis, has experienced dramatic space absorption thus, accounting for a significant net decrease in market-wide vacancy.

Does this mean Tenants are going to pay more in rent when leasing office or industrial space, or when negotiating lease renewals?? In general?..yes.?? However, there are many variables that drive the economic and business terms of every commercial lease. ?There is an old saying in the commercial real estate industry, which is: ?every deal has a life of its own, meaning the lease terms negotiated by one business may vastly differ from the terms negotiated by another seemingly similar business.

We?ve seen this first hand at my firm, CARMEN Commercial Real Estate Services, where in the last year, in spite of declining vacancies, we have negotiated some of the best lease rates and landlord concessions for clients that we?ve seen in years.? But again, as a general rule, as vacancy continues to decline, landlords will become less aggressive in their attempt to lure and retain tenants with favorable lease rates and generous tenant improvement allowances.

Carmen Commercial Real Estate, commercial property lease, Indianapolis Commercial Real Estate, Indianapolis downtown, Indianapolis Office Lease, Indianapolis office relocation, Indianapolis Office Space, Leasing Office Space, Tenant Representative

Source: http://carmenrealestate.com/office-vacancy-down-prices-up

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