The credit crunch has observers of the commercial property lease market shining up their crystal balls to try and accurately predict what is going to happen next.

As is often the case, a lot of generalisations are bandied around about whether it is going to be a tenants’ or a landlords’ market.

Will the tight money market and cancelled developments see supply tighten? Or will downsizing companies free up space to see more supply? These are the 64 million dollar questions.

We have seen some in the real estate industry using a very broad brush to make some very general predictions. I prefer to work with a slim Chinese etching brush, and put some thought into each individual situation.

Undoubtedly, space is being freed up in some areas, such as the Vero building, where the collapsed Blue Chip empire has left a full floor vacant and up for lease.

On the other hand, a number of property developments around the city have been put on hold because they can’t get finance.

Ultimately, there are still some good deals to be found on a case by case basis.

There are definitely some discount opportunities around as property developments already underway need tenants on the books to secure continued finance.

All is not what it seems in these tough market conditions. It is a time to do some careful thinking, and not accept general statements that the market is going this way or that. Researching your needs in detail and being ready to think laterally will stand those on the lookout for commercial leases in good stead. You might just be able to turn the old cliché about the devil being in the detail into finding the angel of opportunity in the fine print!

This entry was posted on Monday 5th May 2008 and is filed under Property Leasing. Both comments and pings are currently closed.