What is the current state of health of the industrial real estate market, and what does 2010 look like? The first question may be…what is healthy? By normal standards, a vacancy factor around 8 percent is considered healthy for the market. This allows tenants to have multiple good choices to locate their businesses, and enough competition to obtain fair lease rates for both tenant and landlord. A smaller vacancy factor gives the landlord the advantage and a larger vacancy factor gives the tenant leverage in their negotiating power. This is under “normal” circumstances. It is fair to say that the current circumstances are not normal!
Read the entire editorial: Download March 2010 article
Mike Farmer is an Industrial Specialist with Commerce Real Estate Solutions. He can be reached at 801.303.5422 or email@example.com.
Reproduced with permission of The Enterprise, Utah’s business journal,www.slenterprise.com.