Author: Zane Keith
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Fall 2022 National Industrial Market Outlook—The Tide Begins to Turn for Tenants
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After two years of record low vacancy and 10% to 20% annual rent inflation for industrial properties around the country, it looks like the market is finally coming in to balance. Rumblings of recession and slower consumer demand have already caused some corporate tenants to put a pause on expansion requirements and slow down their…
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The San Francisco Bay Area can keep all its fog, rain, cold weather, crowded freeways, out-of-sight housing costs and other maladies — including at least one very bad critter that has begun to slither southward to our golden shores. I am referring to the equity participation “virus” that is being used to infect office space leaseholds by a respectful number…
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One of the virtues of the Opinion & Comment page of this newspaper is that it attracts the widest, most diverse range of opinions from people throughout the San Diego area. Some opinions reflect a careful analysis of the subject issue; others fall far short of that attribute. For example, in one recent issue there was an opinion piece by…
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Federal Reserve Chairman Alan Greenspan and his board of governors have increased interest rates in recent months to combat the inflationary pressures being created as a result of the longest and hottest economic boom anybody can remember. As painful as these hikes are, they come as no surprise to most seasoned observers of the economy. We’ve seen gasoline and housing…
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Pity the office space shopper who believes what he or she sees in front of most office buildings these days. With all the “For Lease” signs in downtown and in other locations, the unwary prospect could get the impression there is an abundance of office space readily available and adaptable for tenants of all sizes. Nothing could be further from…
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One of the more confusing areas for businesses leasing office space is the lease itself. Few things are as hard to compare as what tenants pay for their space, given the differences in how rents are structured. There’s nothing wrong with the fact that there are different structures for office rents as long as the tenant fully understands what expenses…
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Office tenants typically pay little attention to their building lobbies and care even less about what’s behind the drywall surrounding their office spaces. That’s about to change, however, now that a new way of computing usable and rentable square footage is gaining popularity among landlords here and elsewhere. First, let’s cover what have been the traditional definitions of usable and…
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Asset management plays a very critical role in creating value for building landlords in the world of commercial real estate. This is an intensive business in which investors — or landlords — are there for one reason: to make money. And while the goal may be singular, the business itself is complex and multifaceted. The highly competitive and cyclical nature…
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Like most enterprises, commercial real estate has its own set of fables and paradoxes. Many are little more than harmless misconceptions based on out-of-date information or ill-informed sources. Others, sadly, are much more problematic — even dangerous — to the health of tenants seeking fair and equitable representation in securing office space. Chief among those is the primary misconception that…
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A newspaper article earlier this month discussed at length the tactics other states are using to lure businesses away from San Diego and other parts of California. Sending promotional literature touting “The Lights Are Always On In Tennessee” and flashlights to California-based businesses are some of the schemes that particular state is using to interest technology sector businesses to relocate…
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In a recent column dealing with the Internet industry’s office needs, I quoted a leading national real estate investment specialist as saying: “E-commerce is changing real estate’s maxim from ‘location, location, location’ to ‘location, price, service.’” He’s right, but the trend extends far beyond the needs of e-commerce office tenants. When you think about it, those three determinants of value…