Lincoln Property Co’s Megan Watkins, the new president of BOMA-Phoenix, tells us that now that office leasing and rents are on the uptick, Phoenix-area owners have more capital to invest back into their properties. That’s both good and bad for owners, she says.
“On the downside, you'll look up to see that a competitive building in your market has just completed a large, shiny renovation that can make your leasing more challenging,” Megan explains. On the upside, owners also have better cash flow, which gives them new resources to keep their buildings current, and to be more creative with rates, TIs and amenities during lease negotiations. “This puts owners and property managers in a strong position to retain tenants and even attract new ones,” Megan says.
