With summer coming to an end and fall upon us, my fantasy football team is hovering near last place. We look to the real estate fourth quarter for a burst of energy in Boston.
While we’ve experienced a slight post Labor Day up-tick in activity, the time that it takes to get a deal over the goal line remains long. Tenant optimism is returning, but both tenants and landlords remain cautious in their long-term decision making. Lenders, boards and executive committees are increasingly sensitive to every detail of the transaction. Scrutiny over credit is becoming prevalent.
If the last couple of years have taught us anything, it’s that perhaps this level of scrutiny isn’t all that bad. The time required for this careful examination, however, is making it increasingly difficult to transact quickly.
With this in mind, starting the real estate evaluation process earlier than usual is more important than ever. It will ensure that tenants leave themselves plenty of time to navigate in the real estate red zone.