Spring is just as good a time to market commercial properties as it is to advertise retail properties. We noted in a prior post that the residential real estate market has appeared to turn a corner, as more people appeared ready to buy real estate. Similarly, commercial real estate owners are encouraged by the prospect of new businesses taking residence in their buildings.
Because of this, building owners appear more amenable to build out (or renovate) spaces to suit a new tenant's interests. According to a recent globest.com report, landlords are seeing more opportunities to cater to business' interests, and building out creates a number of benefits that they would not realize if they didn't build out.
For example, there would be less downtime where there is no income being generated by having a tenant paying rent. The longer the space is empty, the more money it costs a building owner in lost income. Additionally, a property that is built to serve a particular retailer is inherently more valuable than a property that is bare. So if a similar retailer takes over the space, the landlord could probably charge more for the space.
Additionally, a finished space can serve as a showcase for what a finished product can look like to prospective buyer. So if you consider that tenant improvement allowances and free rental deals have increased dramatically over the last decade, this can be encouraging to for retailers.
Given the number of options for prebuilt spaces and the various options available, an experienced real estate attorney can help in your decision-making process.