Enticing Tenants Into Older Offices
Speaking of elderly office buildings, look for landlords to offer incentives to entice tenants to move into mature office towers after an exodus of tenants for newer spaces. (They wanna show you they've still got it, no matter what those young whipper-snappers might say.) A new report from JLL Canada notes Vancouver will see 16% more Class-A inventory come to market by 2017, with planned buildings 60% pre-leased. In Toronto seven developments will inject 5M SF of new space into the downtown market by 2017, and Toronto tenants pre-leased in the new developments will give back over 300k SF. Landlords of existing buildings are responding to the competition, JLL president Brett Miller says, by "reevaluating rental rates and offering increased tenant inducements to secure early, long-term renewals with quality tenants."