Many things can impact what the market for a given class of commercial space rentals is like for prospective landlords and prospective tenants. One of these things is what vacancy levels are like in the area for that particular class of commercial space.
One class of commercial space that has seen a drop in vacancy rates in recent times in the San Antonio area is retail space. And predictions have pointed to this year likely seeing continued drops in such rates, with the possibility that San Antonio could end up with record low levels of retail space vacancy. Some estimates have put the predicted retail space end-of-2016 vacancy rate for the San Antonio region at 5.1 percent, with certain areas being predicted to see even lower rates.
Factors such as population growth and a strengthening job market are among those that are being pointed to as contributors to the decrease the area is seeing in vacancy rates when it comes to retail space.
Low vacancy rates for a given class of commercial space in an area can present opportunities for prospective landlords who own that class of space, as it can mean prospective tenants are more limited in what options they have for what spaces they might be able to rent. Of course, on the opposite end of things, these conditions can pose challenges for businesses that are looking to be tenets in that particular class of space.
So, what the specific market conditions (including vacancy rate) are for a particular class of commercial space can impact what concerns and issues could be likely to come up for prospective landlords and prospective tenants in potential lease transactions involving that kind of space.
What can also be very impactful in commercial lease transactions are the specific circumstances of the landlord, the tenant and the space to be leased. These circumstances can impact what sorts of legal and logistical issues could come up in relation to the transaction. Experienced real estate attorneys can help individuals looking to enter into a lease agreement in relation to a commercial property (either as a tenant or a landlord) with identifying and addressing the particular legal needs they have regarding the transaction given all relevant circumstances.
Source: San Antonio Business Journal, "Retail vacancy tumbles as population growth drives service-tenant expansion," Katie Burke, May 23, 2016