Weak Economy Increases Need For Leasehold Interest Protection
Commercial property vacancies are on the rise across the country. Google Raymond Torto, Ph.D., CRE, and read some of his predictions for commercial real estate over the next several months. Torto, Global Chief Economist for CB Richard Ellis Co., paints a less-than-pretty picture for commercial property owners and landlords.
Landlords are losing tenants; and empty or partially empty buildings produce no income (and create other claims problems that arise out of vacancy). Tenants, like buyers on the residential side, are in control right now; and may remain in control through the end of next year. To entice tenants and generate some level of income, landlords may be willing to offer extremely attractive lease rates during this period.