Are We Living in America’s Next Golden Age?

Every so often, a phrase starts floating around with just enough frequency to make you stop and notice it.

Lately, that phrase is this: “We’ve officially entered the golden age of America.” As a matter of fact, one of my clients mentioned this to me in a text last week.   

It stopped me in my tracks and caused me to ponder. 
 
It is a bold statement. Maybe even an uncomfortable one, especially after several years marked by a pandemic, inflation, political division, and a steady drumbeat of pessimism. And yet, more people are saying it out loud. Not quietly. Not tentatively. Confidently.
So what is going on?

The Case for Optimism. Those arguing we are entering a golden age usually start with technology, and for good reason.

Artificial intelligence has moved from theory to tool in record time. Tasks that once took days now take minutes. Entire industries are being rethought, not gradually, but all at once. History tells us that when productivity jumps suddenly and broadly, economic growth follows.
We have seen this movie before during the Industrial Revolution, the postwar manufacturing boom, and the early days of the internet. Each era felt chaotic at the time. Each one, in hindsight, marked a period of outsized progress.

There is also the matter of resilience. Over the past decade, the United States has weathered trade disruptions, a global shutdown, inflation, banking stress, and geopolitical uncertainty. And yet capital continues to flow into American markets. The dollar remains dominant. U.S. companies still lead globally. By comparison, many peer economies are struggling with demographic decline, energy dependence, or structural stagnation.

Relative strength does not always feel like strength, but in global terms, it matters.
The Counterargument. Of course, not everyone is buying the golden age narrative.
Housing affordability remains a serious challenge. Healthcare costs continue to rise. Income inequality is real. Trust in institutions is fragile. And for many families, the idea that we are living in some kind of economic renaissance feels disconnected from daily reality.
That skepticism is healthy. Historically, so called golden ages have never been evenly distributed. They tend to reward those positioned to adapt early, while others feel left behind.

The Real Question. Which brings us to the most important point.
Golden ages are not usually declared by historians. They are declared by participants, often while they are still unfolding, and often with disagreement.
The more useful question is not whether we are in a golden age.
It is this: Are you positioned to benefit if we are?
Because if history is any guide, periods of rapid change do not wait for consensus. They reward preparation, adaptability, and long term thinking. They punish complacency.
Whether this moment becomes known as a golden age, or just another missed opportunity, will likely depend less on national headlines and more on individual decisions.
And those decisions, as always, are still very much within our control.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

The Fine Print That Decides Your Future: Understanding Renewal Options

As frequent readers of my column know, most of my commercial real estate practice centers around family owned and family operated manufacturing and logistics companies. Generally, these legacy businesses are experiencing a transition such as selling the company that leads to a real estate requirement. Recently, I counseled a family in such a position. They had operated from owned real estate for a number of years. Once the company was sold to a competitor, a family member retained ownership of the building. An option to extend was granted to the occupant which now must be exercised.

 

Situations like this are far more common than most business owners realize, and they often expose a surprising lack of understanding around options to renew. An option is not an automatic extension. It is a contractual right that must be exercised precisely and on time. Miss the window and the option may evaporate, leaving the tenant exposed to market forces or, worse, a requirement to vacate.

 

This brings us to the phrase “time is of the essence.” In plain English, it means deadlines matter. Very much. Option notice periods are often narrowly defined, sometimes requiring written notice delivered in a specific manner within a defined time frame. A late notice, an email when certified mail was required, or notice sent to the wrong address can invalidate the option entirely. Courts tend to enforce these provisions strictly.

 

Equally important is understanding how rent is determined during the option term. Many options call for rent to be set at market rate. That sounds reasonable until one realizes that market rate is rarely defined with precision. Does it include concessions. Free rent. Tenant improvements. Operating expense structures. Who determines the market rate. Is there an appraisal process. What happens if the parties cannot agree. Without clarity, market rate can quickly become a source of friction rather than certainty.

 

Other options rely on CPI based increases. While these can provide predictability, they also come with nuances. Some leases include caps and floors. A floor ensures the rent increases by at least a minimum amount even in a low inflation environment. A cap limits how much the rent can increase during periods of high inflation. Both can materially impact the economics of the option term, particularly in today’s volatile economic climate.

 

There are also practical considerations that are frequently overlooked. Does the option require the tenant to be in full compliance with the lease at the time of exercise. Even minor defaults can technically disqualify a tenant from exercising an option. Are there personal guarantees that survive into the option term. Do operating expenses reset or continue on the same basis.

 

In the case I referenced, careful review and timely counsel allowed the family to navigate the option properly and preserve both the tenancy and the value of the real estate. That outcome was far from guaranteed without attention to detail.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.

 

 

The Most Expensive Clause in Your Lease Isn’t the Rent

When tenants review a lease proposal, their attention almost always goes to the same place first: the rent.
 
That’s understandable. Rent is easy to see, easy to compare, and easy to negotiate. It feels like the most important number in the deal.
 
But after decades of representing commercial tenants, I can say this with confidence:
 
The most expensive clause in your lease is rarely the rent.
 
In fact, I’ve seen tenants negotiate aggressively on rental rate, only to give back far more value through clauses they barely noticed, didn’t fully understand, or assumed were “standard.”
 
Rent is obvious. The real cost of a lease is often hidden.
 
The Clause You Don’t Notice Until You Need It. One of the most expensive clauses in a lease is the renewal option, or more specifically, how it’s written.
 
A renewal option that calls for rent to be set at “fair market value” sounds reasonable. Until you realize who determines that value, how disputes are resolved, and how much leverage you actually have when the time comes.
 
I’ve seen tenants assume they had a strong renewal right, only to discover later that the landlord controlled the process or that the language was so vague it was nearly unenforceable. By the time they learned the truth, their leverage was gone.
 
Operating Expenses: The Silent Escalator. Another clause that quietly becomes expensive over time involves operating expenses. You know, those pesky additional charges such as property taxes, insurance on the building, and maintenance. 
 
Tenants often focus on base rent and treat operating expenses as secondary. But over a five or ten year lease, uncontrolled expenses can easily exceed modest rent increases.
 
Common issues include:
    •            No caps on controllable expenses
    •            Poorly defined expense categories
    •            Administrative fees buried in the fine print
 
I’ve reviewed leases where tenants thought they secured a “great deal,” only to watch operating expenses rise faster than inflation, with no meaningful protections in place.
 
Assignment and Sublease: Flexibility Matters. Businesses change. Space needs change. Markets change.
 
Yet many leases severely restrict a tenant’s ability to assign or sublease, sometimes requiring landlord consent that can be withheld at the landlord’s sole discretion.
 
That clause may seem harmless on day one. Years later, it can become costly. I’ve seen tenants forced to carry unused space, sublease at a loss, or pay to exit a lease that could have been transferred if the language allowed it.
 
The cost wasn’t in the rent. It was in the lack of flexibility.
 
Termination Rights: Options Have Value. Early termination rights are another area tenants often overlook.
 
Yes, termination options usually come at a cost. But like insurance, the value isn’t in whether you use it, it’s in having the option. I’ve represented tenants who never exercised their termination rights but benefited from the leverage and protection those clauses provided.
 
Why This Happens. Most tenants sign a lease every five to ten years. Landlords do it every day. The imbalance isn’t intelligence, it’s repetition.
 
Tenants negotiate rent because it’s familiar. They overlook clauses because they assume the rest is boilerplate. It rarely is.
 
Final Thought. Rent is easy to see. Clauses are easy to ignore.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.
 
 

Predictions for 2026

Happy 2026 dear readers. I trust the end of 2025 came and went peacefully and that you are restored, rested, and ready to tackle the year ahead. 

2025 marked a personal milestone for me with the launch of my first book, The SEQUENCE, a Personal Journey and Proven Framework for Commercial Real Estate Brokerage Success. I have been both humbled and encouraged by the response. It has found favor with commercial real estate professionals around the globe, which tells me that the principles of structure, discipline, and long term thinking resonate no matter the market.
 
Looking ahead, 2026 promises another book entitled Holding the Keys, Commercial Real Estate Decisions That Shape Family Business Success. It is already in the works, and I am excited to share it with you. This book will read much like this column has for more than eleven years and is written for those of you who run family businesses or advise them. Real estate decisions inside family enterprises carry a different weight, and this book is designed to address that reality.
 
But aside from new reading material, what do I see unfolding in commercial real estate this year. Allow me to offer a few predictions.
 
Prediction One. Patience Will Continue to Be Rewarded
 
The frantic pace of decision making we saw in prior cycles has cooled. In 2026, thoughtful buyers and tenants will benefit from slowing down. Pricing expectations are still adjusting in some sectors, and deals that make sense tend to favor those willing to wait, ask better questions, and negotiate deliberately. Urgency will still exist, but artificial urgency will be exposed quickly.
 
Prediction Two. Family Businesses Will Revisit Ownership Conversations
 
With interest rates no longer whipsawing and lending standards better understood, many family owned businesses will once again evaluate whether ownership makes sense. Some will decide to buy. Others will decide to lease longer term. What matters is not the outcome, but the intentionality behind the decision. I expect more owners to separate emotion from strategy when it comes to owning the building they operate from.
 
Prediction Three. Relocation Decisions Will Be Driven by Efficiency, Not Just Cost
 
For years, rent dominated relocation conversations. In 2026, efficiency will reclaim center stage. Workflow, labor access, power, yard, parking, and functionality will matter as much as rental rate. Businesses that optimize operations often outperform those that simply chase lower rent. I expect more relocations to be framed around productivity rather than savings alone.
 
Prediction Four. Industrial Remains Resilient, but Not Uniform
 
Industrial real estate will continue to be a bright spot, but not all industrial properties will perform equally. Buildings with functional obsolescence, excessive office, limited loading, or poor access will struggle. Well located, efficient facilities that serve modern logistics and manufacturing needs will continue to attract interest. Selection will matter more than ever.
 
Prediction Five. Sellers Will Learn the Value of Preparation
 
Owners who prepare their properties for sale before exposing them to the market will outperform those who do not. Clean documentation, realistic pricing, and a clear understanding of buyer motivation will separate smooth transactions from frustrating ones. In 2026, buyers remain cautious and informed. Preparation will not be optional.
 
Prediction Six. Advisors Who Bring Clarity Will Win
 
Finally, I believe 2026 will reward advisors who bring clarity rather than noise. Clients are tired of conflicting opinions and endless data without context. They want thoughtful guidance, clear frameworks, and honest conversations. Those who listen well and explain better will earn trust and long term relationships.
 
As always, markets will surprise us. Headlines will distract us. Predictions will be proven partially right and partially wrong. But the fundamentals remain. Commercial real estate decisions are rarely just about property. They are about people, timing, and long term consequences.
 
Here is to a healthy, productive, and thoughtful 2026. I look forward to continuing the conversation with you each week.
 
Happy New Year.

Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104. His website is allencbuchanan.blogspot.com.