The Dallas office space market is a landlord’s market going into 2017. The demand for quality office space is at record levels. As an office tenant looking for a perfect location you need to take action when you find the right office space.
Dallas area office vacancy rates are low in almost every submarket. The lack of options has increased the difficulty for tenants to negotiate aggressive deals. It is also making it harder for Dallas office tenants to have backup locations in the negotiation process.
Landlords have the advantage of receiving multiple offers for the same office space. Competition among tenants sometimes occurs for these locations. Landlords will choose the most financially beneficial tenant fro the space. If you are a new company or a company with damaged credit or the competing company has better financials you could loose out to a financially stronger business.
The nightmare scenario is to be a tenant that is almost ready to sign the lease after months of negotiation and loose the space because another tenant is more appealing to the landlord. There are some ways you can still give yourself an advantage as a tenant in this competative Dallas office space market.
Dallas Office Space Market Tactics:
- Have Multiple Options – This is obvious but it is always good to have backup plans. With tis tight office market there are not as many as we once had but they are still available. Knowledge of the market is helpful to have numerous office space options.
- Time Management – Once you decide to lease office space or renew your lease make a timeline for the process. Your tenant representative will do this for you but if you don’t have one it is helpful to design one and hold yourself accountable.
- Be Realistic – Everyone wants a good deal. There are still excellent opportunities available but be realistic regarding rental rates. Don’t expect a $18 per square foot rate in a $28 per square foot market.
- Speed – Don’t procrastinate. Time isn’t your friend in a landlords office market.
- Communication – Don’t make assumptions. Know what leasing activity your landlord is experiencing.
- Tenant Representative – Employ the services of a qualified Dallas office tenant representative to insure that you are seeing all the office space options and you are on top of your competition.
- Lease Renewal Option – If you have a lease renewal option in your lead understand the terms and the notification dates. This is a helpful tool that is defiantly advantageous for office tenants in a landlord’s market.
- Attorney – Decide who you will use for your legal council while you are looking at space. Don’t loose your space because a better offer came into the landlord while you are looking for an attorney.
- Letter of Intent – Negotiate language in the letter of intent (LOI) that both parties will stop negotiations with other parties once the LOI is executed.
Use these tactics to place yourself in the best position to find and negotiate a good lease space. There are other ideas but these are certainly viable. If you are looking to position your business in the most advantageous position and you need a Dallas office broker contact us so we can show you how we can help you.