An improving retail market means the big tenant incentives of the last few years are vanishing…
As a tenant representative in the valley for over 23 years, I have seen the cycles of the pendulum swing between a Tenant’s market and back to a Landlord’s market several times.
The current consensus, held by most people in the commercial real estate business, is that there is real improvement going on in the market as vacant retail space of any quality is quickly absorbed. With more competition for the remaining good space, incentives such as free rent or large tenant improvement packages typically offered over the last few years by Landlords are dwindling and driving rental rates back upward and the extra incentives are gone.
Considering the lack of quality retail space in the market, we are starting to see proposed retail projects popping up all over the market in different planning/pre-leasing stages. These new retail projects will command strong rental rates with minimal to no incentives. If you are a Tenant in the market for quality space, you may be surprised with the changes in retail rates and lack of incentives that were prevalent in the last several years.
David Jarand is an industry leader for tenant representation in the Arizona market and his prestigious career spans over 23 years. David provides tenant representation services to many national & regional retailers including: Harbor Freight Tools, Supercuts, Dollar General and The Good Egg to name just a few. Reach out to David at the contact info below for questions related to tenant representation.
David Jarand | Vice President
602.778.3834 | firstname.lastname@example.org