Lots of Start-Ups

It makes sense, if you think about it, for the decline of large firm employment to lead to more people starting their own businesses.  Either they were forced to retire early, or they took a buyout, or they just could see the handwriting on the wall.  For any of those reasons, and often with the help of severance checks, unemployment, or retirement benefits, more and more ex-employees are becoming entrepreneurs.  They are pursuing long-term dreams, or filling needs that large firms have abandoned.

Of course, they need different types of space.  That's partially why we are still seeing too much office space on the market, and why flex space, especially in small increments, in greater demand.  Over time, if these new firms prosper, it may lead to new uses for the office space, or for building of more manufacturing and distribution facilities.  Let's hope so!

Users are Out There

We have been happily surprised this season by the interest in listed properties by users.  During the darkest days of the recession, most people who were looking at properties were investors, usually what we call "bottom fishers"--people looking to get a really good deal from the misfortunes of others.  This is especially true when they have cash and can close immediately.

While we expected the early spring market to be more of the same, we are finding that showings are more often for businesses and organizations that need space.  There are a lot of start-ups, and also places that need to expand.  This is an excellent sign for the improvement of the commercial real estate market, and one that we hope to see continued in the weeks and months to come!