Two months ago, this column discussed at some length the various operating expenses involved in leasing office space -- costs over and above the monthly per-square-foot lease rate. We referred to them as those "something extra" costs that are in addition to the so-called "full service" leases tenants are asked to sign.
Few would dispute the notion that owning one's own home is a major part of the American dream. The freedom, sense of security and investment advantages accompanying home ownership are too numerous and compelling to dispel.
As if we don't hear enough these days about shortages in gasoline, energy, water, clean air, city revenues and the like, we're now being told by office landlords and their broker shills that vacant office space in San Diego is shrinking faster than a speeding bullet -- to use a well-worn phrase from the latest Superman epic. Some "experts" are suggesting that San Diego is in mortal danger of running out of developable land which, together with the so-called dearth of existing office space, will surely ignite explosive increases in rents.
Six summers have come and gone since the power crisis of 2000 wreaked total havoc throughout the state as residential and business consumers struggled to survive through rolling blackouts and power bills that, in some cases, rose twofold in as many months.
Sooner or later, somebody needs to begin to apply basic economics to try to sober up San Diego's commercial real estate market, given the drunken rash of building sale transactions in our recent past.
Two weeks ago, this column went to considerable lengths to expose the abundance of both vacant and "available" office space in several San Diego regional submarkets. Despite how landlords and their agents have attempted to concoct an office space crisis, there's no reason for tenants looking to lease office space to believe even for a nanosecond that they have little or no options in finding available space.
Unless you're in the gasoline business, the customer is a -- if not the -- key player in the marketplace where goods and services are sold. Basic economics teaches that a healthy and vibrant market is one that offers robust competition and choices from which consumers can choose.
A dream that came true 45 years ago for the city of San Diego could easily become a nightmare for America's Finest City if, in fact, the San Diego Chargers eventually move from the hometown they've occupied since 1961.
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