“Over the long term, I think there are some Class A tenants who would be willing to move to Class B space if the rent differential made it worth their while.”
Funny you mention that Bugs. Right now I am negotiating a new lease for a business my wife owns. She is finishing up a 5 year term in class A space and we are searching in some class B/B+ space which should reduce our rent by close to 50% with very little loss of business. Our landlords in the current class A space refuse to budge on base rent price and it is also a NNN lease. Most of the class B/B+ buildings we are looking at are modified or full gross.
