Tenants and Landlords Working Together; Cats and Dogs Next

A nice piece from the tenant side of the fence by Andrew Zezas at the Corporate Advisor.  Mr. Zezas, who is a tenant advisor, recognizes the perilous state of many landlords and talks about the merits of a "win-win" relationship between landlord and tenant, particularly in today's economy. Amen!  Here's a sample: 

Interestingly, landlords are not perceived as a group that deserves anyone’s pity. However, given current global economic conditions, and those of credit and real estate markets, with many landlords holding on white-knuckled trying not to lose their buildings to lenders, if there ever was a time when landlords were entitled to anyone’s sympathy, now would be that time. The government and business communities must recognize the challenges commercial landlords currently experience, along with the on-going struggles that most of them will endure over the next few years. If not, the tenants we advisors and brokers represent may have fewer stable leasing opportunities, and therefore, they may have much bigger problems!

I could not have said it better myself.  Here's some more well-reasoned insight from Mr. Zezas:

Landlords and tenants would do well to consider their relationship with tenants as one of interdependent partners, instead of transactional opponents. The true recognition of interdependence between landlords and tenants is that without mutual benefit, the relationship simply won’t work. A landlord with no paying tenants achieves nothing. A tenant without a building to rent would have no place to conduct its business, and would likely be forced to divert capital from investment in its own profit generating ventures to real estate ownership.

In short, finding a "win-win" solution to leasing issues is more important than ever as the CRE industry rises slowly from its knees. Amongst landlord clients, this has resulted in a fair amount of soul searching in order distinguish between "wants" and "needs" and get a fair lease signed.  For example, they may "want" a more aggressive calculation or a broader definition of Additional Rent, but do they "need" it, right now?  (Rent rolls are built one tenant at at time, after all.) Hopefully, as suggested by Mr. Zezas, the same thing is taking place on the tenant side and we can start filling some more space.

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