44TH STREET, AIRPORT, PIESTEWA PEAK, AND MIDTOWN SUBMARKETS: THE HIDDEN LEVERAGE ZONES TENANTS SHOULD USE.

My previous blog broke down the Camelback Corridor - where prestige drives pricing. Leverage is gained the moment tenants step outside the Camelback Corridor to the surrounding submarkets. The Airport, Midtown, Piestewa Peak, and 44th Street submarkets have higher vacancy and turnover. Landlords may negotiate differently because time on the market can be their biggest enemy. Occupancy tends to be prioritized over rental rate.

Many buildings in the surrounding submarkets tend to be shorter-term deals, such as 3 - 5 years rather than 7 - 10 years. This changes negotiation dynamics and how stability is valued. Tenants who can sign quickly have more negotiation leverage because landlords want to avoid downtime and vacancy. Vacancy pressure surfaces in landlord concessions, such as aggressive free rent.

Complimentary Best Options Report: Renee Ervanian / Managing Broker

www.corecommercialllc.com / renee@corecommercialllc.com / 602 330 7482.

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