|Tenants are now catching a break in New York, with the pendulum swinging in their direction. Expect more space, cheaper rents and greater concessions, said CresaPartners principal Marcus Rayner when we visited his Park Avenue office. Now’s the chance to reconfigure workspace for future needs without the pressure of missing opportunities—but if you don’tplan, you can’t take advantage of the market.|
|Brokers, especially tenant reps, will also feel the changing landscape. In the short term, they’ll need to know how to negotiate flexibility in long-term leases and how to protect clients from defaulting landlords and sub-landlords. In the longer term, they’ll need to spend more time planning and consulting with clients to understand how issues such as employee mobility will affect future demand for space.|
|But have no fear—Marcus (with colleagues Jennifer Lamb, Ken Witler and Paul Weir) provided us with tips for both clients and brokers looking to benefit from this market:|
- Tenants: plan for the future and understand how new workplace developments can lower your occupancy costs; hire a broker who truly represents your interests; and negotiate harder by understanding where the real savings are created in negotiations.
- Brokers: if you're not a tenant rep, business could be slow for a few years; make the most of this market and the shift in the services you will need to provide your clients. If you can expand your platform with integrated services, you'll be better placed to build long-term client relationships.
- All: balance your work with life. This will be a stressful time for anyone in commercial real estate and we all need to be inspired outside of work, he says (Marcus enjoys indulging his family and absorbing himself in historical fiction and a variety of the arts).