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04/14/2010 11:33:28
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Subject: Changing Tenant Demands in Today’s Markets
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Elsie Hermann
Joined: 09/25/2008 21:54:44
Messages: 202
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A new dynamic is being seen among tenants in all property types -- multifamily, office, retail, mixed use -- resulting in increasing and changing demands and non-traditional property uses that impact operations, marketing and leasing.
Share your strategies for successfully meeting changing tenant demands and/or your challenges with developing an effective game plan.
This message was edited 4 times. Last update was at 11/03/2010 10:02:31
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05/26/2010 16:32:27
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Subject: Re:Design a Forum at IREM iCon that Addresses Tenant Demands
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Louis Nimkoff
Joined: 11/13/2008 12:18:15
Messages: 10
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For a long time, there had been a growing landlord market. As long as rents are going up, tenants tend to pay their rent and stay on the good side of the landlord. When the economy stalls and real estate markets are falling, tenants not only become more coveted by landlords, but the tenants get concerned that they should cut back on occupancy expenses by both asking for rent reductions, but also cutting back space, asking workers to "hotel" and/or work from the road and/or home. As much as landlords might want to accommodate this, landlords are often bound by financing terms not to do so without lender approval, and we know that's not happening. So the order of things becomes... Rock - Landlord - Hard Place.
Our forums should address creative ways that win-win situations can be created and they will vary by property type. Office owners can do this in different ways than apartment owners, etc.
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05/27/2010 11:19:50
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Subject: Re:Design a Forum at IREM iCon that Addresses Tenant Demands
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Ben Forsyth
Joined: 05/27/2010 09:44:45
Messages: 1
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Struggleing Retail tenants are using every avenue to reduce their costs. Rent reduction requests seem to be happening on a weekly basis with no end in site. Even national Franachise users are requesting reductions. Many Landlords are stuck in a corner and are faced with a decision to reduce the rent or have a vacant space and like the big name user in the center. In some cases the Franshisor is getting involved in any negotiation along with the Tenant (Franchisee). It seems that it would be reasonable for the Franshisor to assist the Franchisee with some sort of franshise fee reduction.
What are successful tactics used with the Franshisor to help your tenant out and maybe lesen the blow your Landlord will take through their alloted reduction?
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06/21/2010 16:53:40
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Subject: Re:Design a Forum at IREM iCon that Addresses Tenant Demands
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Benjamin Forsyth
Joined: 06/21/2010 16:51:14
Messages: 1
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[
This message was edited 1 time. Last update was at 06/21/2010 16:54:37
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08/17/2010 11:34:30
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Subject: Re:Design a Forum at IREM iCon that Addresses Tenant Demands
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Karen Altes
Joined: 01/28/2009 16:33:42
Messages: 2
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I came across an interesting article along these lines today:
http://www.idahostatesman.com/2010/08/17/1305245/valley-landlords-get-creative.html
Interesting strategies are mentioned, including free rent in exchange for long term leases, only charging CAM fees, offering tenant improvement incentives, etc. Has anyone used similar strategies for their properties, and how have they worked?
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09/21/2010 11:37:11
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Subject: Re:Changing Tenant Demands in Today’s Markets – Create an IREM iCon Session
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Bruno Friia
Joined: 09/21/2010 11:25:08
Messages: 1
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Does anyone have any expierence/information on medical marijuana for resident leases or medical marijuana distribution for commercial leases - help - please contact me at bruno@montana.com - thanks. 
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01/05/2011 22:59:40
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Subject: Re:Changing Tenant Demands in Today’s Markets
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Brian Kays
Joined: 12/22/2010 13:29:14
Messages: 8
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Bruno,
Are you looking for this information because you have a resident that has a medical liscense to smoke this stuff? I think any "Crime Free, Drug Free" Addendum worth its weight will have this information in it. If not your company should have a lawyer that would be able to easily research your state/city laws. Sorry, just a bit confused. I was hopeing it's not to start offering as part of your lease. 
This message was edited 1 time. Last update was at 01/14/2011 14:15:08
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01/14/2011 14:23:59
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Subject: Re:Changing Tenant Demands in Today’s Markets
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Brian Kays
Joined: 12/22/2010 13:29:14
Messages: 8
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I would like to see owners, managers and marketing professionals shift the focus from giving large amount of free rent to get prospects to move in right away to spreading it over longer amounts of time. I'm not talking about lowering rents each month, I would like to see a reasonable "special" than give residents money off on their 6 month and then their 12 month. Spread it out and include this as part of your renewal efforts. Give them more if they have been there 2, 3, 4 years as a reward for their loyalty. Even make it so that if they do move, but to another property managed/owned by the same company they keep their "loyalty" bonuses. It just makes sense to keep good residents vs HAVEING to attract new ones all the time.
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04/20/2012 13:56:25
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Subject: Re:Changing Tenant Demands in Today’s Markets
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Christopher Harber
Joined: 04/20/2012 13:50:47
Messages: 3
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I too would like to see "free rent" spread out over the lease. In some cases where a tenant wants us to match a competing base rent # but we are unable to, we offer a free month or two of rent each year, thus lowering the "effective rent" number so the tenant is actually paying a lower amount/year, but the price/foot number is the same. Of course, if it is a 3 year lease with 3 free months of rent, we make the lease 39 months so the owner actually gets the full amount of rent. Just a way to be creative an compete with other owner's lower base rent numbers.
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05/11/2012 19:30:46
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Subject: Re:Changing Tenant Demands in Today’s Markets
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Lynne Miller
Joined: 07/06/2011 16:30:04
Messages: 5
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We have found it almost impossible not to give in to some of our existing tenants' requests when renewal time comes up because the market has become so competitive. One example of a compromise we made was with parking. The tenant is now practicing shared office space so every employee is not in the building everyday. We have accommodated them by also sharing parking spaces. Yes, it reduces our parking income, but it also reduces the tenant's parking expense and kept them in the building. With the competition in our market, tenants want more concessions. If we want tenants, we have to give a lot, whether it is free rent, higher TI allowances, special parking rates, etc.
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