How long does it take to get retail leases signed now versus a year ago?

By Justine Griffin, Orlando Business Journal

Jeffrey S. Sweeney, president, Grubb & Ellis Commercial Florida:

“There are a lot fewer tenants in the market today. Retail building owners used to take reservations for space and have several companies want those spaces. But now fewer tenants are looking for space.

“Back in the heyday, most 12-month lease-ups were done in six months, but an 18-month lease-up today may take 24 months. The market has slowed down a lot and the activity just isn’t there.

“As a brokerage firm, you’re only as good as the product you represent. You have to be careful to select projects that can perform. Tenants aren’t going to settle for anything but the best location. A slow market takes a good broker to sign a lease.”

Mindy Boehm, associate director of retail brokerage services, Cushman & Wakefield of Florida:

“I have noticed more tenants being represented by a residential real estate sales agent, and in those instances, these deals can present their own unique set of challenges. We are seeing more of that representation with the slowdown in home sales.

“If the tenant has a broker, there could be six to eight people on the tenant side making the decisions. With so many chiefs involved in the process, it becomes convoluted, and can drag out for weeks.

“From a landlord representative’s perspective, it seems as though the process is taking much longer, four to six months, whereas a year ago it only took one to two months.

“Open and honest communication with my landlords helps ease their anxiety about the long, arduous process as we work through negotiations.”

Blake Hunter, associate retail broker, Staubach:

“It varies depending on the tenant, but it’s typically about six months from the beginning of negotiation to lease execution. It’s probably more like six to eight months right now versus four to six months a year ago.

“A lot more due diligence is being put into each location to make sure it fits the retailer’s requirements, and more approvals are now necessary. There’s not much we can do to speed up the process, but we can make sure our clients have the most information available so they can make educated decisions.”

Bobby Palta, senior associate of brokerage services, CB Richard Ellis:

“It really depends on the landlord. When they are constrained to achieve a certain rent, deals take longer. But if they’re flexible and offer incentives to tenants, it can run smoothly. We finished one deal in 60 days with a landlord willing to do what it took to get it done.

“Tenants have a bit of an advantage in many situations. Landlords have to be flexible in these type of deals. Now is the perfect time for tenants to come off the sidelines. There are great opportunities out there that weren’t available six months ago.

“We’ve seen it cool off from the white-hot period we were in, and now are in a more normal environment.”