Sometimes, an owner of a commercial property will end up being in a situation in which a fair amount of space on their property has become open. This can be seen in what has happened with the building that the Southeastern Pennsylvania Transportation Authority is headquartered in.
The 20-story building is located in Philadelphia’s Center City area. The building is a 672,143-square-foot building.
Due to some tenants who were on a sublease leaving the building and a consolidation of operations that SEPTA has done, over one-tenth of the building’s space has now opened up. The open space is on three different floors of the building.
One of the individuals in charge of the building’s property management and leasing has said that he expects that the open space may prove attractive to tenants for whom the West Market office submarket is too expensive.
The reasons why space in a commercial property opens up can vary quite a bit. Whatever the reason for such an opening, one of the big questions that will come before a commercial building owner when it comes to open space is: what should be done with the open space?
Quite often, commercial property owners will seek to lease out open space in their buildings. One incredibly important thing when it comes to commercial leasing is the lease contract. Such contracts can be very complicated and having the language right in these contracts can be incredibly important for a commercial property owner. Thus, when a commercial property owner is planning to lease out open space, they may want to seek out the services of a real estate law attorney to help with the drafting and negotiation of lease contracts.
Source: Philadelphia Business Journal, “Vacancy hits 1234 Market St. in Center City,” Natalie Kostelni, May 22, 2014