• Slight Rise in Average Office Lease Term

    Strong profit growth responsible for climb says Grubb & Ellis Co.
    Jan. 21, 2005
    According to Bob Bach, national director, market analysis at Northbrook, IL-based Grubb & Ellis Co., the average office lease term climbed a bit in 2004 as strong profit growth gave tenants the confidence to sign long-term leases instead of short-term extensions. “Blend and extend” was a popular option where landlords reduced the rent remaining on the last year or two of a long-term lease if the tenant would sign a new long-term lease, thereby securing a steady income stream for the landlord and an immediate rent discount for the tenant. Job creation and business confidence should improve in 2005, generating more long-term lease signings.This market update information was provided by Grubb & Ellis Co. (www.grubb-ellis.com).

    About the Author

    James Earl

    Sign up for our Newsletter
    Get the latest news and updates.

    Voice Your Opinion!

    To join the conversation, and become an exclusive member of Buildings, create an account today!