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Real Estate Investment Software Blog

In an article posted today on my real estate news blog by The Wall Street Journal, A.D. Pruitt reports that “some of the country’s top office-building owners reported they are cutting rents and increasing tenant incentives to keep buildings filled during one of the worst commercial real-estate markets in decades.”

According to the author, “The office market is getting pounded by the economic downturn as businesses shed workers and put off leasing decisions. In the third quarter, companies vacated 19.6 million square feet of space throughout the country, the equivalent of more than six Empire State Buildings, according to Reis Inc…The pain starts hitting when leases expire. In tough markets, landlords typically have to spend a lot to retain or attract tenants through brokerage commissions or incentives such as free rent or interior construction. The cost of attracting tenants is a factor that is cutting into funds from operations.”