In a down office leasing market, landlords are not only offering more in the way of tenant incentives — such as paying for a tenant’s build out — they are getting more creative about what sorts of incentives to offer, the Wall Street Journal reported.
For instance, at 229 West 43rd Street, landlord Blackstone Group is willing to create outdoor terraces and private entrances and is even considering letting workers bring their dogs to work, the paper said.
In Columbia Doctors’ recent lease at 1290 Sixth Avenue, the medical group was able to attain a private entrance at the building. “In a bull market it’s very hard to do things like this,” said Mark Weiss, a vice chairman at Newmark Knight Frank, who worked on the deal.
Paul Amrich, a vice chairman at CBRE Group who specializes in landlord representation, said landlords he represents are often willing to finance the entire buildout of an office space they are looking to lease, and now they need to push the envelope of incentives to offer. “I challenge my owners to think, ‘How are we going to come out on top that isn’t giving away the store, but allows you to put something in front of the tenants?'” [WSJ]