An article on the Washington Business Journal dated December 18, 2013 reports that the office market in the District of Columbia is losing ground due to the region’s high prices. Washington D.C. association with the nation’s seat of power makes it an appealing place to set up an office. Despite such eminence, the article describes a bleak scenario for the region:
Washington's status as one of the most expensive cities on the globe has slipped in the past year. D.C. placed 22nd in December 2012, with an occupancy rate of $94.51. That shouldn't come as much surprise for companies that have recently launched a search for new office space downtown. Landlords have been forced to throw all kinds of concessions at tenants, including lowering their rental rates, to help combat a significant increase in vacancy rates.
With landlords desperate to lease their buildings, it sounds like the perfect opportunity to snap up office space in the city. Yet even with the potential price drops, there are still buildings whose costs take a fortune to properly own. For reasonably-priced office space in D.C., businesses will have to rely on an expert on commercial real estate, such as Metro Offices, to find the best possible deals.
It’s certainly possible to find good deals by manually scanning the city for leasing opportunities, although such a task can be extremely tedious. Even if a business manages to find an affordable unit, the space might not even have adequate space or amenities for the tenant. Preferably, lessees should choose only office spaces that are either in good shape or already have furnishings; this is to avoid spending even more for improvements. Balancing quality and cost can be a tall order, especially if the average costs of leasing in a city are high.
Fortunately, commercial real estate professionals can do all the hard work for prospective lessees. These experts can find suitable office spaces that meet the budget and specific needs of lessees. Upon arrangement, commercial real estate firms can even set up a shared office space in Washington, D.C. so that two lessees can share ownership of one office while halving the costs of rental between the two.
(Article Information and Image from D.C. office market slips among world’s priciest, Washington Business Journal, December 18, 2013)