Five Forces For Tenant Demand
Use Porter's Five Forces to diagnose tenant bargaining power in a submarket.
The reframe: a comp set tells you who looks similar; Five Forces tells you who changes leverage. Rivalry is only one part of the story Direct competitors matter, but a tenant's decision rarely stops with them. Tenant reps compare buildings, but occupiers also compare staying put, shrinking footprint, outsourcing operations, or moving to a different submarket. Forces reveal bargaining power When tenants have many credible alternatives, they can demand flexibility, concessions, and options. When new supply is coming, landlords may lose urgency even before the building opens. When construction costs rise, tenant improvements become a supplier-power issue that changes deal…
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