The negotiation of rent and tenant incentives depends on the dynamics of your local market. In markets where over-development or economic conditions have created higher vacancy, this favours tenants. In other markets, low vacancy gives landlords the upper hand in negotiations. Contact your Colliers professional for the market trends in your location.
You can also check out our latest office market reports in the Research section.
Tenant Improvement and "Make Good" Costs
Your entry and exit strategy to a lease can greatly affect the real cost of your commitment. Workplace design and tenant improvement costs should be viewed as an organizational opportunity—a well-planned and executed office will adapt to your organization's growth and changing needs and minimize churn costs.
Balancing your tenant improvement costs and their benefit to your organization is critical. In addition, "make good" commitments will affect your cash flow when exiting a lease. These costs are covered in more detail later.