Drop in San Diego Office Space Vacancies
For the first time since 2007, the commercial office space vacancy rate for San Diego has dropped below the 14% mark.
In the fourth quarter of 2011, the San Diego office leasing vacancy rate dropped to 13.8 percent, the lowest it had been since it was at 14 percent in the third quarter of 2010.
The San Diego office rates still have a long way to fall, if it is to approach its recent low of 8.4 percent, which it hit in 2005, however it has already come a long way from its high of 15.3 percent in the first quarter of 2010.
The San Diego commercial real estate vacancy rate is still slightly higher than the national average, which currently sits at 13 percent, down from 13.2 percent in the third quarter and 13.5 percent from the year before.
The rental rate for San Diego office space however held almost constant from the third to fourth quarter, moving down one cent to $25.40, and for the year, was down from $26.05.
With San Diego office vacancy rates falling, one would expect office rental rates to start inching down but this is far from the case.
Over the last two years, vacancy rates have been on a wild “up and down” roller coaster ride, said John Galaxidas, President, Synergy Real Estate Group, Corporate Advisory, the largest group of independent tenant representatives in North America.
As we enter into the Presidential election year of 2012, vacancy rates will inch down creating a slight uptick in San Diego office rental rates, eventually leveling off or decreasing again slightly by end of fourth quarter of 2012.
So, if you are seeking to secure a great rental rate on San Diego office space, now is the time to either renegotiate your current lease or relocate to nicer, more cost effective office space.
At Synergy Real Estate Group, Corporate Advisory (www.synreg.com) our goal is to serve as the Tenant’s Advocate and resource to companies seeking commercial space in the San Diego area by providing them with detailed market information and local expertise to better understand the local commercial real estate market.
This is a no-cost, no-obligation service to your company to help you determine if you can save money cutting your facility cost.
We understand the San Diego office rental market and since we only work with tenants we are able to show more properties than typical listing brokers and we avoid any conflicts of interest during the negotiation process. If you’re unsure of the benefits of using a tenant representative, call us at: 888-979-7787 or visit our web site at www.synreg.com and we will be glad to go over the benefits our company provides relative to other firms.
Synergy Real Estate Group, Corporate Advisory Helps NASA Hubble Lease New 120,000sf Office Space
John Galaxidas, President and CEO of Synergy Real Estate Group, Corporate Advisory, announced that the company assisted NASA – Hubble / TRAX International in leasing 120,000 square feet of office space for 450 staff located at 7700 Hubble Drive in Greenbelt, Maryland, a suburb of Washington, DC.
GREENBELT, Md., Jan. 5, 2012 /PRNewswire/ – John Galaxidas, President and CEO of Synergy Real Estate Group, Corporate Advisory (www.synreg.com) announced it assisted NASA – Hubble / TRAX International in leasing 120,000 square feet of office space for 450 staff located at 7700 Hubble Drive in Greenbelt, Maryland, a suburb of Washington, DC.
Synergy Real Estate Group, Corporate Advisory is the largest group of independent exclusive commercial real estate tenant representation brokers in North America headquartered in San Diego, California with over 120 associate offices throughout the US, Canada, Mexico, UK, India and China.
John Galaxidas, with the assistance of Debra Stracke Anderson, President and CEO of Sloan Street Advisors, co-brokered with Synergy to represent NASA Hubble in the transaction.
Debra Stracke Anderson was recently selected by the Mid Atlantic Real Estate Journal as one of “The Best Deals of 2010″ where the transaction with NASA Hubble / TRAX International was formally announced.
To differentiate itself from other Commercial Real Estate firm, Synergy never represents Landlords, only Tenants. There is no cost for its service.
“Our clients range from small businesses to large Fortune 500 firms. We provide clients with a report containing all property sites that meet our clients parameters with photos, floor plans, help them to select the best alternatives, and then negotiate aggressive terms that take advantage of today’s multiple concessions and incentives,” said Galaxidas.
“Synergy tracks every office space and warehouse space in the local submarkets daily, including subleases, so it’s much easier for us to do the background work for our clients to be sure our clients become aware of all possibilities, as many are not marketed publicly. Further, since all commercial real estate leasing fees associated with a building are budgeted for and paid by the landlords, our clients incur no costs while having expert representation to insure that they achieve the best lease terms possible,” said Galaxidas.
For more information about Synergy Real Estate Group, Corporate Advisory, please visit their web site: www.synreg.com or call: (888) 979-7787.
What is a Tenant Representative?
What is a Tenant Representative? A Tenant Representative or Tenant Advisor is a licensed real estate agent, broker or brokerage firm that specializes in exclusively representing Tenants.
A Tenant Advisor spends a great deal of time learning about the needs and goals of a business and then applies that knowledge to extensively research and analyze specific markets in order to locate properties that are optimal for the needs of their client.
Generally agents or brokers who have a significant amount of property listings cannot or will not provide this level of service, because they are busy producing market reports for the property owners that they service, pursuing more listing opportunities or conducting meetings with their owners, etc. Not to say they are not qualified to do so, rather this is not a core focus of their business.
Once a property has been identified by a business this is where the Tenant Representative’s market research pays off. Since the Tenant Advisor is an advocate for the business/future tenant. This is where the Tenant Advisor can use their market knowledge such as recent lease comps, amount of vacant properties in the market area, amount of new supply coming online in the future, etc. and other information in order to establish negotiating points so that the best lease rates and terms are achieved for their client.
Alignment of interests is another reason why a Tenant Rep should be used when a business is seeking out new a new location for the business operations or for a specific division of the company. The reason being is that a Tenant Advisor looks at all property listings in the market area and will not be predisposed to only look or even favor their own listings, whether they are in the clients desired market are or not.
Here’s an illustration of what I mean. When a big commercial real estate brokerage firm is getting anywhere from 10 to 50 plus listings a year from institutional real estate owners it’s hard to say that their interests won’t be naturally aligned with the owners who give them a ton of work year in, and year out. Whereas the Tenant Rep Brokers are not getting those listings and would rather work with the tenant and therefore will unequivocally fight for the tenants best interest when it comes to finding optimal properties for their business, and negotiating the best possible rates and terms for the lease.
So business owners it’s in your best interest to use a Tenant Representative. You’re going to find an individual and/or firm who is going to be dedicated to your pursuit and treat you like a number one priority. In addition, tenant representation agreements generally come at no cost to the tenant, since commissions paid to the Tenant Broker are paid by the landlord.
For more information about Synergy Real Estate Group, Corporate Advisory, please visit our web site: www.synreg.com or call: 888-979-7787.