Today on CNBC there was some news that commercial office space has hit a 17 year low , more vacancies and lower rates. Unemployment is not friendly to office leasing regardless of the market a person is in. The results are problematic and fairly straight forward, leasing a commercial property is a supply and demand issue.

When unemployment is high, commercial real estate demand is low. The inverse of course is true if unemployment is low, then demand for office space and warehouse property is higher. Each market has it's own metrics and its a good thing we are not living in Las Vegas, Phoenix or Los Angeles right now. So here is the good news, for tenants the office market is stronger - why? As long as the supply increases and demand decreases to lease a space, your negotiation power is stronger. A good commercial broker should be able to help you negotiate better lease rates and concessions for leasing an office or a warehouse property during this market turbulence.

Forecast wise? I do not believe this is going to be over any time soon , at least not for the forseeable future, therefore is will be  continue to be advantangeous for a tenant leasing commercial property. As far as buying commercial property such as an office condo or warehouse, prices are moving downward. However, there are still quite a few properties that have heft price tags on them, this should change as owners sit on this properties. The longer an owner sits the horizon becomes shorter towards eventual refinance and if they can not get a refinance the property could go into foreclosure or a short sale.  

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 www. Industrial-Austin.com