Landlords must be savvy in a tenant's market.

As we begin to recover from a recession that directly affected the office market last year, landlords are using a variety of creative tools to keep their buildings, fully leased. The market has once again cycled back to the tenants, and savvy landlords are responding accordingly.

In addition, there is another, unique dynamic that has come into play, one in which we find a lack of emotional commitment from the tenants. Whether it's based upon an uncertainty in the overall economy or a gamble as to when the market might -- or might not -- bottom out, we are finding prospective tenants taking longer periods to review and sign leases. There is also reluctance for some existing tenants to expand their space, no matter how great the need.

So what have we done to improve the situation and encourage speedier consummation of leases? For one thing, such incentives as early lease renewals, which give tenants the opportunity to lock in lower rates and building owners the ability keep their space leased for an extended period of time, are proving to be a mutually advantageous strategy.

Another example of creating an environment conducive to active leasing is to provide build-outs and concessions, which were not market-driven in a pre-Sept. 11 economy.

In addition, in this market, we are also inclined to add "Good Guy" clauses to many of our leases. Should a tenant default under the lease, his or her personal liability is diminished and we can take back the space to re-rent quickly without the hassle or expense of lengthy litigation. It also helps us to avoid hostile tenants. As hokey as it sounds, we prefer satisfied tenants because one dis-gruntled tenant can quickly spread discontent throughout a building.

On a more personalized note, as managers, we also take into account a building's particular character to provide special amenities: The Bar Building, which is on the chic hotel block of West 44th Street off Fifth Avenue, now features lunchtime piano concerts to lift tenants' spirits. The Church Center for the United Nations, which became a key site for memorial services during the period immediately following the World Trade Center attack, now provides a facility for additional counseling; along with its ongoing policy programs.

Another phenomenon that we are seeing, and not necessarily a bad one, is the use of brokers for lease renewals. In my 30-plus years in the real estate industry, I have never seen such a proliferation of brokers being used for basic office lease renewals. But along with tenants feeling less secure about the economy, comes greater scrutiny of their leases.

We find even the most unconcerned tenants are now asking us about charges for porter's wages, CPI's, and other standard, billing practices. In fact, in order to provide a more predictable rental schedule, we are slowly changing over to a system of fixed percentage annual increases. Small business tenants with fewer than 5,000 SF especially appreciate the ability to accurately project all rental expenses throughout the term of a lease.

So it's not such a stretch, for the tenant to want a broker to negotiate with the landlord. And despite the fact that it is generally a more expensive deal for the landlord, it does give us, as landlords' agents, the-advantage of working with seasoned professionals who understand the nuances of the market.

In our buildings, as with many, we are letting tenants know about the increased security measures we are taking. In some of our buildings we require strict security upon entering the premises, but mostly the added security measures fall into the "behind the scenes" categories.

For example, we have hired a private investigation company to research the background of anyone applying for a job in a building managed by The Burak Organization. Obviously, there is a need to be more informed regarding building staff. In some of our larger properties, we also request contractors -- both tenants' and our own -- implement background checks on their personnel before beginning work on premise.

It's a new world that requires new routines, but we believe the extra care makes everyone a little safer, and our tenants have responded positively to these simple measures, by and large.

Moreover, we have recently worked with some prospective tenants that have traditionally leased offices in trophy buildings, and are now prefer addresses with less visibility. So in addition to a basic reaction to an uncertain market, many businesses are moving into less well-known buildings. And, of course, they are responding positively to stepped-up, security measures in these office buildings.

So much of what we have seen in the first quarter 2002 was established throughout the past three quarters. Not only are we working in a tenants' market in terms of commercial office space, we are in the midst of developing and learning new security measures on behalf of our tenants. We are also creating new incentives to hold onto those tenants and bring them into our buildings, without compromising our rent rates. We are even negotiating with brokers on what have been traditionally automatic processes, such as lease renewals.

On the other hand, businesses are returning to the city and there, seems to be a collective sigh of relief as the economy once again builds up steam. The first quarter 2002 has been signified by the renewal of our economy, or at least the beginning of it. It is also a time of renewal in the city's psychology, if it may be termed that, inasmuch as we have a new mayor who is active in the business community and a federal government that has promised New York City money for rebuilding.

On an individual level, The Burak Organization is in the process of creating new business strategies, as well as dealing with a whole new world of security issues. Overall, it's heartening to see the commercial real estate market hold steady, while new opportunities appear on the horizon.