Nearly half of the respondents in our survey report they have neither renegotiated their leases nor moved since January 2009—but they may be missing out on better deals, according to Scott Bloom, president and managing member of Bloom Real Estate Group.
At the economy’s peak, landlords began to phase out smaller spaces, says Bloom, but the trend has started to cycle back. The reason: “There is a new demand for the smaller space,” Bloom says. “When there are large waves of people let go from companies, these qualified business people group together and form start-ups or seek individual office space.”
Bloom also sees more opportunities for sublease contracts as larger companies realize they can make do with smaller spaces. But the time for small businesses to act is now, he says: “Tenants who are looking into the future realize they don’t want to be renegotiating leases in a few years when the economy is expected to improve.”
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Lindsay Tigar is the Editorial Assistant at The New York Enterprise Report. She can be reached at firstname.lastname@example.org.