In the world of tenants and buyers, these are the good old days!

As a real estate professional specializing in leasing and sales of commercial real estate, I am often asked "Is now a good time to sign a new lease?" or, "Is now the right time to purchase a building/property?" Sure rental rates are down, but are they heading down even further? Perhaps if I wait, it will be beneficial? It seems property values have declined considerably over the past year, but why should I buy now when tomorrow prices may be even lower? These are all wonderful and intuitive questions. And the whole thought process that surrounds these inquiries is interesting and difficult to logically argue against. However, in actuality, the facts are this is counter-intuitive. Let's examine the situation more closely: When (sales and leasing) prices are rising, it would be reasonable to think that fewer and fewer buyers and tenants enter the market (and more and more abandon the market), so values ought to suffer right? Not so! In fact, when prices are increasing, more and more buyers and tenants look to get "into the mix" in an effort to get on the bandwagon before prices and rental rates increase further! Hmmmmmmmm..............Interesting.............. And when interest rates start to creep up, mortgages become less and less affordable so fewer and fewer buyers seek to purchase real estate, right? Not so! In fact, when interest rates increase, more and more folks look to get their hat in the ring before interest rates rise even further. Counter-intuitive? Yes. But logical nonetheless. So, let's examine where we are today. Values of commercial real estate are undoubtedly way down. Rental rates, likewise. "Deals" are all around us and concessions and incentives are commonplace. Simply, it's a wonderful time to be a tenant or a buyer. Yet, both continue to sit on the sidelines seemingly waiting for an e-mail that reads as follows..."Attention, attention, the market has officially hit rock bottom (and there is nowhere to go but up)!" To all of those folks I have three words...are you kidding? To tenants, I shout that this is a fabulous time to take advantage of a market that is clearly a "tenants market." I have not been able to find anyone who would argue with this statement. No one!If you need more space, go out and lock it up before the train leaves the station. If you already have a lease, and think you cannot capitalize on the opportunities that abound today, I say invite a real estate professional in to review your current lease, in concert with your business plans. Perhaps he or she can make constructive and valuable suggestions that will allow you to benefit from these challenging times. Whatever you do...do something! Sitting on the sidelines in this environment will surely hurt you in the long run. I can't tell you how many stories I can recall from those who, over the years, cry about how they "could've and should've. To anyone who is considering purchasing a building or property, I say run, do not walk (with the services of a real estate professional, of course). Interest rates are outstanding at this time. Money, in contrast to what you may have heard, is available! Lenders are eager to (gulp)...lend. Capitalization rates are up dramatically. And values, have fallen to levels so attractive that they are at new levels that have not been seen in the past decade! H—E—L—L—O! In case you have not noticed, in the world of tenants and buyers, I am going to let you in on a little secret...these are the good old days! Jeffrey Schwartzberg, SIOR, is senior director for Sutton & Edwards and president of Commercial Industrial Brokers Society, Syosset, N.Y.