For businesses, a renters’ market
OREGON - With vacancy rates for Bend’s commercial office space at 13.5 percent — more than double the empty space available early last year and a number that is expected to rise — landlords are offering incentives that range from rent reduction to tenant improvements to handing out cash.
The latest incentive for businesses looking to expand is geared toward helping companies overcome the financial hurdles resulting from the credit crunch; namely, the lack of financing available upfront for overhead costs such as new office computers and other equipment, and tenant improvements, said Brian Fratzke, principal broker for Fratzke Commercial Real Estate in Bend.
“A lot of landlords will take the first tenant with a pulse and a pocketbook,” he said. “But when this thing turns around, they’re going to say, ‘Darn, I’ve just devalued my building.’”
Instead of lowering lease rates, which devalues the building over time, one of Fratzke’s clients, owner of the 2,800-square-foot RedBend Office Building near the Redmond Airport, will give the tenant the first six months of rent free, up to $27,000, Fratzke said.
This is equal to giving a free month’s rent at move-in and one every 12 months thereafter, which is a common incentive, Fratzke said...
