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Old May 20, 2020 | 6:23 am
  #174  
HDQDD
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Originally Posted by Moderator2

The two landlords I am working with right now on soon expiring leases have been excessively overconfident in negotiations up until the last 3 weeks, assuming that asking rates from the beginning of the year are still achievable.


This is what I've heard from others. I really don't think CRE has any idea how bad their negotiating position is right now. ...And it's still deteriorating.


Originally Posted by Moderator2
I have intentionally slowed played the two in progress deals, to allow the landlords to start losing confidence in their position. On the smaller space near PHL this foot dragging has proved effective, and on the other (which is 4,000 square feet in a the MIA adjacent Class "A" building) there has been no rent price movement but I did obtain a 40% jump in tenant improvement dollars versus what they offered 45 days ago. This Miami landlord though is one of the twenty largest insurance companies in the country and have a very healthy balance sheet.


Well played. I have a friend who owns a bar and he's been having the same discussions. I told him hold out, because when customers start pulling the plug in masse, prices will plummet. Problem for him is that he's running out of money. So he may not be able to renew the lease anyway and that's another major problem looming for CRE.
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