Many Boston-area corporate real estate executives are wondering if "we're there yet" in terms of an office market recovery, as many landlords and their brokers are trying to create the perception that the pendulum is shifting in their favor. The truth is that space has tightened significantly in Class A high-rise buildings in the Financial District, Back Bay, and East Cambridge In fact, there are signs that the overall market is recovering, albeit very slowly.

But are we home yet? Not by a long shot. In fact, the latest economic study, released by Northeastern University economist Alan Clayton-Matthews, reveals that Massachusetts won't return to pre-recession employment levels until the second quarter of 2015. In the meantime, availability levels in most markets are still 20% or more, with huge amounts of inventory waiting to be filled.

Mastering the Art of Advocacy

With the stakes so high and some landlords pushing the envelope, tenants are advised to partner with advisors who can objectively represent their best interests and provide integrated corporate services like Strategic Planning and Project Management. They should leverage every opportunity to advocate for themselves and exercise their negotiating clout.

For example, we encourage clients to:

• Investigate your landlord and the market. Don't make assumptions about the landlord's financial stability. Many buildings are still under debt and at risk for delinquency. You can also strengthen your position by reviewing other options in the market and researching the occupancy situation in your building. 
• Stress credit-worthiness. At the same time, credit-worthy tenants should stress their own stability, knowing that landlords would prefer to work with companies that have strong long-term plans. In this light, early lease renewals present a win-win situation for tenants as well as landlords who want to keep good tenants in place. 
• Maximize favorable lease terms. Read the fine print in your lease...you'll find numerous clauses that can support your negotiations. Flexibility is key, so make sure there are favorable terms for expansion and contraction. Also, ensure the building delivery date is acceptable. And naturally, push for generous concessions such as tenant improvement allowances and free rent.  
• Plan today for the office of the future. Consider how your workforce is changing and plan ahead for an infrastructure that will accommodate wireless environments, office sharing, smaller workstations, and sustainable features. Determine plans to optimize your space by working with a Project Manager and request support from the landlord.  

It will still be a long and bumpy ride before a full commercial real estate recovery arrives in Greater Boston. Meanwhile, be prepared to act before rents across the board really do rise...and remember who's in the driver's seat!

With the stakes so high and some landlords pushing the envelope,

tenants are advised to partner with advisors

who can objectively represent their best interests.

For related information link to our blog: http://www.cresapartners.com/boston/blog/.