By: Danny Wechsler, Regional Business Director, Madison Commercial Real Estate Services
Despite signs of a recovering economy, employers are hesitant to increase office space in this job market. The current vacancy rate in commercial office space is reflecting this reality. According to a recent report released by real estate data firm Reis, Inc., the office vacancy rate for the second quarter of 2014 was at 16.8%, just a slight decrease from the post recession rate of 17.6% in 2010.
As a result, landlords and managers of commercial office space are seeking and finding creative avenues to fill vacancies. For example, current market conditions are allowing start-ups and small businesses to rent space in commercial office buildings, where they previously would not have gotten a lease. While landlords may prefer an established tenant with long-term stability, in today’s market, they often don’t have a choice and are forced to be less choosy.
But there are other steps a landlord can take to preserve his investment while filling vacancies. Continue reading