Author: Scot Ginsburg
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Five Tips to Ease the Pain of Rising Rental Rates
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Commercial real estate has rebounded in most parts of San Diego County. So much so that it has been on a tear in the Class A office space arena during the last 18 months, with rents spiking between 25-40%.
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Everyone knows the state of the U.S. economy. It’s plastered all over the news multiple times a day. In fact, paralysis may set in if one ingests too much media. As companies continue to be on the brink of existence from continued slowed growth and increased losses each quarter, commercial real estate is no different. Real estate is like anything…
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During the past few years of tough economic conditions, we’ve all seen the growing presence of “zombie buildings” – those mostly vacant spaces with empty staring windows and dusty For Lease signs. If you’re looking for office or research space and run across one of these forlorn facilities that fits your location and square footage requirements, it can be tempting…
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Leasing office space can be a challenge for startups. Entrepreneurs are often so focused on their business that they don’t fully understand the process, timing and expenses necessary to find a suitable location to run it. Given that real estate is typically the second or third largest fixed expense after payroll, it helps to consider several factors when budgeting for…
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How much space should your company lease? That’s the million dollar question. Many organizations have a difficult time projecting their headcount three to five years in advance. Tenants in mid-lease term who find themselves out of space are sometimes against a rock and a hard place. Provided the current landlord has adjacent space available, it’s an easy fix. However, it…
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Is the commercial real estate market headed for a rebound? Not yet. The glut of office space dumped on the market by the financial and residential real estate sectors, scarce tenant lease rollover for the next year, and newly built office buildings during recent times have pummeled space demand. Rental rates have long been inflated due to investors overpaying for…
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The million dollar question in commercial real estate: Will rental rates for office properties soften in the near future? Taking a quick glance at the past several years of San Diego County’s office market illustrates that years 2000 and 2005 were at all time highs for space demand. Basic economics, supply and demand, were the main reasons why rental rates…
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Over the past three to four years the commercial real estate buying frenzy has been at an all time high. Not too long ago, Class A office buildings sold around $250 per square foot and today are topping well over $500 per square foot. Furthermore, several buildings have sold more than once during the past few years and each time…
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It’s no surprise. Everyone knows how the commercial real estate market is performing. The dramatic rise in rents during years 2005 through 2007 has slumped. Cap rates are rising while investors sit on the sidelines. Landlords are now in fierce competition to secure new tenants in the market but also trying to retain existing occupants. Depending on the submarket, square…
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Commercial real estate markets lag behind residential real estate markets anywhere from six to nine months. As home prices started to slide dramatically in late 2006 and early 2007, it was not too long before commercial real estate prices began to hit a brick wall. During late 2007 and in full force during 2008, commercial real estate values were in…