Commercial leasing matches businesses with space. Knowing the market’s structure and vocabulary is the foundation.
Property sectors
Office (classes A, B, C), retail (strip centers, malls, street retail), industrial (warehouse, flex, manufacturing) and specialty.
Market metrics
Asking and effective rents, vacancy, absorption, concessions and lease terms by submarket.
Participants
Landlords and their leasing agents, tenants and tenant representatives, attorneys, architects and lenders.
Common mistake
Comparing asking rents across buildings without adjusting for lease structure. A gross rent and a net rent are different numbers.
Key Takeaways
- Office (classes A, B, C), retail (strip centers, malls, street retail), industrial (warehouse, flex, manufacturing) and specialty.
- Asking and effective rents, vacancy, absorption, concessions and lease terms by submarket.
- Landlords and their leasing agents, tenants and tenant representatives, attorneys, architects and lenders.
Check Your Understanding
Before moving on, explain in your own words how the ideas in “The Commercial Lease Market” apply to a property or deal you know, and name one number or document you would need to check.
Action Step
Pull a market report for one sector in your metro and record asking rent, vacancy and typical concessions.
This course is educational and does not provide legal, tax, financial, investment or appraisal advice, and does not issue any license, certification or credential. Real estate law, tax rules and licensing requirements vary by state and change over time; consult a licensed attorney, CPA, appraiser or your state regulator for your situation.