In the state that our economy is in, many business owners are finding it difficult to keep profits up. Commercial real estate building owners usually do not see decreasing numbers in the early stages of a recession. Since their tenants have signed primarily long-term leases, office building owners are not seeing a financial decrease until the leases expire. In these cases, some landlords have resorted to tenant incentives to keep their occupation numbers up. In the Boulder, Colorado commercial real estate industry, tenants have remained content and satisfied with their commercial buildings.
Some of the US's top office-building owners are struggling to keep their buildings full. For example, Boston Properties Inc. who currently owns the GM building in Manhattan is allowing their current tenants to pay 17% less than previous ones. One of New York's primary office landlords is SL Green Realty Corp. whose funds have, respectfully, decreased by 28%. Liberty Property Trust, Malvern, Pennsylvania's office building owners have seen a 10% decrease in their funds during the recession as well. Commercial real estate owners have even resorted to free months rent and construction allowances for their tenants' businesses. These are somewhat difficult times for many of us.
However throughout the recession, Boulder, Colorado commercial real estate investments have been secure because of their tenants. At Bittner Commercial Advisors, we have strongly supported and remained available to all of our tenants, despite the country's weaker economy.
To be successful with your tenants, you must continue to maintain constant communication and a respectful relationship with them. It is these relationships that have allowed our company to thrive and improve the market as a whole.
There is no doubt that some states have been more financially successful over the past year than others. According to CNBC, overall, Colorado was ranked as the third best state to do business in 2009. The ranking is based on ten different categories ranging from Quality of Life to Transportation to Cost of Living. Colorado is an excellent place for commercial real estate investments. Our diverse and strong economy was ranked 5th in the nation. Additionally, we were ranked 5th in Business Friendliness and 11th in Technology and Innovation. This means that not only will you find friendly and understanding financial advisors, but knowledgeable and up to speed ones as well. Colorado's economy and commercial real estate market are a safe and easy way to invest your finances this upcoming year.