CRE magazine has published the commentary of Alexander Ustinov, Business Development Director for RD Management, on lease relations in the current economic environment.
Experts admit that in the near future owners of commercial real estate will be busy working to establish partnership relations with tenants that will help both owners and tenants support each other through this period of economic instability on the market.
“Tenants who are prepared to sacrifice quality for the sake of minimizing expenses could be willing to double down in negotiations with owners, as they are emotionally ready to move,” says Alexander Ustinov. “Others prepare carefully for negotiations and make a balanced assessment of the real value of their premises on the current market. Their behavior in negotiations is often democratic and oriented toward partnership.”
Market participants expect the peak in bonuses offered by owners to come closer to summer. For now, according to Alexander Ustinov, most owners are limiting their bonuses to such services like assistance in office fit-out or reconstruction, provision of longer rent-free periods and lower rates for parking spaces.