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August 23, 2023

Legal News

August 23, 2023

Office Vacancy Rates and Leverage for Tenants

According to the National Association of Realtors (NAR), the vacancy rate for office spaces in the U.S. reached a new high of 12.9% in the first quarter of 2023, compared to 12% in the previous year. The impact of the Covid pandemic has led to a mixed scenario, where some employees are gradually returning to the office, but hybrid and remote work arrangements have become a permanent fixture. JPMorgan Chase is among the companies instructing employees to resume in-person work, while others like Amazon and Apple are adopting a part-time office attendance policy.

In light of these developments, businesses that are contemplating lease renewals or entering into new leases may find themselves in a favorable position to negotiate lease terms. During these negotiations, tenants may consider insisting on the inclusion of a "good guy clause." This particular clause can provide tenants with added flexibility and protection.

To gain a deeper understanding of the benefits and implications of a "good guy clause," we recommend reaching out to one of our attorneys for a consultation. They can provide expert guidance tailored to your specific needs.

This is not legal advice and is attorney advertising

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