Landlords Openly Admit to ‘Best Deals’ Being with Captive Tenant Renewals

Oct 21, 2010 by

After having a chance to reflect on the positive vibes from the recent Calgary Real Estate Forum I remembered several very interesting and revealing comments made by several major Calgary Industrial landlords who spoke at the conference.   During one of the sessions on the Calgary Industrial Market Update, which was very positive and upbeat a participant from the audience asked “…over the past 12 months… what have been the circumstances of the best deals you have done with tenants…”?  To my surprise several of the landlords,on the panel, who shall remain un-named but included 2 of the largest industrial landlords in the market, proceeded to tell the audience that the best deals they had done from a financial perspective were with “…renewals with tenants that have 20% office development and lots of equipment that is hard to move…”.  Translation… captive tenants.  One of the landlords quipped that the best time to do these deals was “…early before the tenant has a chance to ‘broker up’ “.  Translation… get to the tenant before they have a chance to get educated on the market by an industrial real estate broker.

What does this mean to you?  Well if you are an industrial tenant with a lease renewal coming up in the next 6 to 18 months, have significant office improvements or have equipment that is hard to move be wary as your landlord will be looking to do one of their ‘best deals’ of the year with you at renewal time.

Click here if you want to ‘broker up’ and get educated on the Calgary Industrial market.

Here is some evidence of our performance in protecting captive Tenants.