It doesn't pay to be a small business today

Small businesses are struggling. Just ask John Robinson.

He’s executive vice president with the Indianapolis office of Jones Lang LaSalle, a commercial real estate company. When he looks at the commercial real estate market across Indianapolis and its suburbs, he notices one thing: Those tenants that want to lease space in the 10,000- to 30,000-square-foot range seem to be faring much better during the economic downturn than are those seeking 3,000- to 6,000-square-foot office space.

And Robinson’s willing to bet that Indianapolis isn’t unique in this.

There’s a simple reason: The tenants seeking larger office space tend to be government users and education providers. These larger tenants have received more financial assistance from government programs and more help from banks.

The small businesses that are looking to lease smaller amounts of space? They’ve received little help from anyone.

“I see the larger businesses now making plans to expand their operations again,” Robinson said. “But the smaller businesses are still trying to hold on.”

This is unfortunate. Granted, the federal government has taken some steps to help small businesses in this dismal economy. The government, for instance, recently approved legislation that provides $30 billion in funds that small banks can loan to small business owners.

Unfortunately, measures like this seem to be of the too-little, too-late variety.

And if you don’t believe this, just ask anyone, like Robinson, who follows office-leasing trends. They’ll tell you exactly what kinds of businesses are expanding and which ones are just trying to stay alive.


Leave a comment
  • fb_avatar

    Small businesses were struggling at that time. Thanks for sharing Dan.

    Heater Repair Calabasas

Leave a comment