Some financial experts believe that developing conditions in the commercial real estate market might also prompt an evolution in lending practices. Small banks, which had played a major role in CRE financing, could soon face increased regulatory scrutiny amidst demands to make their underwriting standards more stringent.
Commercial lease terms are negotiable
It is common for California business owners to negotiate with property owners regarding the terms of their commercial leases. This practice is an expected one, and property owners are prepared to engage in negotiations in order to secure good tenants. The possibility of negotiation is likelier when the property is not in a prime location or when the market is weaker.
