One industry's pain is another's gain

A new survey from commercial real estate giant CB Richard Ellis confirms what many in the industry already know: Landlords are at the mercy of tenants, especially in the retail industry.

For starters, 73% of the retailers that responded to the national survey say they negotiated tenant improvements with their landlords in the past year. Among that group, 65% reported they were able to squeeze out a lower monthly rent. Other respondents said they got the landlord to improve the space or allow for early lease termination.

Moreover, 48% of the respondents, polled in March and April, believe rental rates will continue to fall in 2010 and 43% think rates will remain flat. The respondents who expected rental rates to increase were mostly global or regional retailers.

With rate power like that, it's no surprise that an overwhelming majority of the respondents, 92%, say they plan to increase store openings in 2010, according to the report titled Shop Talk — A Retailer's Perspective.

“Our survey shows that retailers are increasingly more confident about their growth plans for 2010 and even more so for 2011,” says CBRE Retail Services executive Anthony Buono in a press release. “Although they remain cautious as to the overall impact of the global economy on the domestic market, most remain optimistic about their prospects for their own businesses, near-term as well as long-term.”

Coffee Talk doubts that many commercial property owners and landlords on the Gulf Coast share that optimism.