Michael Thom discusses the changing commercial real estate landscape in Mortgage Professional America
Obermayer business and finance attorney Michael Thom was interviewed by Mortgage Professional America (MPA) in connection with the changing commercial real estate landscape. The article “Office tenants gain advantage amid changed market dynamics” by Tony Cantu, published on December 16, 2022, focuses on the tenants’ leverage in negotiating leases for office space. Mike explained that the demand for office space isn’t as great, mainly due to the workforce downsizing and remote work.
Such a scenario can be rough for landlords, Mike suggested: “As a result, tenants in some situations they really have the landlords by the throat, because landlords need to have some people in there to oversee their debt service because they have to come out of pocket for it.”
The changed landscape benefits tenants. “With more office space than people need, tenants have secured negotiating power and the ability to structure leases in their favor,” explained Mike.
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