Mike Maroon is the managing partner of The Acclaim Group LLC, based in Cranford.
We asked Mike about what an office or warehouse tenant can expect when its current lease expires, given the tightening markets and rising rents.
“The days of ‘low-hanging fruit,’ where a tenant with good credit could expect a rent reduction in exchange for a lease renewal, are now gone due to the dramatic up-cycle that we are currently experiencing across the country. In a lot of cases, tenants are being faced with significant sticker shock in terms of rent and operating expense increases. However, there is a silver lining here. Savvy tenants should look beyond the basic/old-school real estate metrics of dollars per square foot and take the opportunity to align their real estate with their business plan to create alignment with, and support of, corporate goals and solutions to the business unit’s challenges.”