(Source: Ottawa Business Journal)

The divergence between local tenants and landlords’ perception of what constitutes fair market rents is growing wider, leading both sides to try to hold off on signing deals, according to commercial real estate services firm CB Richard Ellis. 

While there is always a difference when it comes to landlords’ and tenants’ expectations, it has widened with the economic downtown as landlords hope to lease space at rates seen more than a year ago when the market was booming. But tenants want recession-style value, says Brian Seymour, a vice-president and broker at CB Richard Ellis.

“There is a difference in expectations,” he says.

“(But) that is passing as time goes on. We are all adjusting to the new economy.”

Read Peter Kovessy’s full article “‘Large disconnect’ between asking and effective rental rates: CBRE” in the Ottawa Business Journal (May 12, 2009).

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