Building Owners Bargain as Concessions Heat Up

PORTLAND-New reduced rental rate…No Rent Escalations for five years…Full 5% fee for successful referral…Significant tenant improvement dollars available…Free rent…Owner will provide free trip to Jamaica. These are the goodies to be had for brokers and tenants who can make a deal happen in these dog days.

Of course, the odds of having a client need the space for which the carrots are being dangled are slim to none, which always has people questioning the tradition. Still, things like free rent and big tenant improvement dollars sound better to owners than advertising rental rates not in line with the lender’s expectations.

Tom Becic, a broker with Melvin Mark Cos. is marketing the Banfield Plaza office building at 80th and Northeast Halsey Street. The owner is putting up an extra 2.5% commission in hopes that a full 5% fee might attract more brokers to the site. “The goal is to generate activity,” says Becic, who in times like these doesn’t shy away from too many potential opportunities. “When times are slow, it’s a nice filler and relationship builder.”