ORLANDO-Mohawk Industries has inked a 46,002-square-foot lease at 7320 Kingspointe Parkway. Calhoun, GA-based Mohawk Industries manufacturers carpet, rugs, hardwood floors, laminate, ceramic tile, and vinyl flooring.
Moses Salcido, principal of Orlando-based Southern Commercial Real Estate Advisors, represented the landlord, Crownpointe Buildings LLC. Kaycee Kapels, a vice president at Jones Lang LaSalle in Jacksonville, represented Mohawk Industries. Salcido did not return calls seeking comment on the deal.
Kapels did not reveal the specific terms of the Mohawk deal, but she tells GlobeSt.com that she’s still seeing strong concessions from the landlords, especially with credit tenants. The negotiating goal is still one month per year of the lease term for rent abatement, she says, along with very generous tenant improvement allowances.
“The allowances can be structured to use half towards rent abatement, moving costs, or furniture,” Kapels says. “Along with this we are seeing some landlords give a moving allowance to the tenant also.”
Most notably, she says, landlords are coming out with their lowest rates on the first round of proposals. That means they don’t have much room, if any, to negotiate the rental rate on the counters. However, she says, tenants also realize they are most likely seeing the best and final on rate and negotiate rent abatement and tenant improvement allowances instead of haggling over rents.
Kapels calls today’s negotiating style a “cut to the chase approach” where the landlords want to make sure they are not cut from the shortlist because of the quoted rate. “On this particular deal I believe it was a ‘flight to quality’ where the tenant had specific needs in the amount of dock doors, newer product with higher clear height, larger truck court, and a financially solid landlord which led them to solidify this transaction,” she says.
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