How Early Do Tenants Start Looking?
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It's still a tenant's market in the DC area. And firms on the hunt for new space are starting the search earlier and earlier, according to West, Lane & Schlager's Andrew Genova (with colleague Matt Levin). Whereas real estate decisions for many tenants used to often take less than a year, some groups are starting the search two and even three years before a current lease expires, Andrew says. And since there's no clear-cut tenant base filling up the area's vacancies, landlords are still willing to dole out big concessions to woo tenants, including lease buyouts, he tells us. (Who says romance is dead?)
Andrew's seen the lease buyout trend firsthand with a deal he and colleague Rich Lane recently brokered for PSI Services and Administrative Services (ASI/PSI) in its new 21k SF Landover space at 8301 Professional Pl. The affiliated groups had 18 months left on a lease in Bethesda, but Andrew and Rich were able to negotiate a buyout valued at half of ASI/PSI's remaining lease, which the new landlord paid. It's been a busy few months for Andrew, who's also closed an additional 32k SF of deals on behalf of tenants including: International Franchise Association and Solidaris with colleague Eric West, Pediatric Nursing Certification Board with Cresa's Mindy Saffer, and The Ocean Foundation with colleague Ganon Rich.