Landlords Make Room for New Tenants, Provide Relief for Existing Tenants

May 2011 Landlords post pic.jpg The soft real estate market in Atlanta and around other big cities across the United States has some law firms signing on to new office space. While this may seem counter-intuitive due to the continuing economic unease in the marketplace, there are many reasons why this is the perfect time to sign on to new a lease. In fact, tenants are not the only ones taking advantage of the current economic climate by taking on new commitments. Some developers are taking on new building projects while construction costs are low and subsidies can still be found.
The biggest driver behind the surge in leasing may be the fact that landlords are keenly interested in keeping their tenants. These landlords, who are often large developers, have to remain flexible to retain their clients and boost occupancy rates. With large volumes of space to lease, re-stacking of office space is becoming commonplace in large buildings. This reorganization of floor space can benefit both the landlord and the client. For existing clients who have downsized their workforce, a consolidation of space between floors can be necessary. For starters, unoccupied office space can become a financial drain on the company. Restructuring an existing lease agreement can result in a lower lease rate and/or additional perks, such as additional parking or remodeling of the new space. But there is another reality that can affect the bottom line of any organization that has cut back on personnel. It is the fact that the psychological effects of working in a vacant landscape can be devastating on the remaining employees. So the client who consolidates office space can dramatically improve the company’s bottom line, by cutting costs and by improving morale.
The landlord also benefits considerably by allowing existing tenants to consolidate space. Besides helping the tenant “right-size” into the proper space, consolidation makes room for new clients who may have very specific requirements. These requirements may include a particular view of the city, a preference for the top floor or the need to restrict elevator traffic to that space. For many companies, especially banks and law firms, real estate costs are the second highest expenditure after personnel. Making that investment wisely is important and a good landlord-tenant relationship is critical.
In 2010, Elaine M. Russell found a way to help law firms with open office space and solo law practitioners by creating www.LawSpaceMatch.com. This free service matches lawyers seeking to sublet space with unoccupied office space at compatible law firms around the country. Elaine M. Russell is a corporate and business attorney representing clients throughout Georgia. Elaine’s office is located in the Buckhead section of Atlanta.
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See Also: The Need for Law Space Match, Unexpected Benefits Come From Office Sharing, Atlanta Law Space Vacancies