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The
leasing process is complex and time consuming
when done properly. Tenants can lease space from
landlords from a position of strength, or conversely,
a position of weakness. When engaged, professional
Tenant Representatives leverage a comprehensive
understanding of the market and the dynamics involved
to establish the very best terms and conditions
for the tenant-client. Outlined below is a framework
of the leasing process and also important considerations
from beginning to end.
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| a. |
Estimate usable square
feet based on number of employees, configuration
and design, planned growth, walking corridors,
special functions, etc. (Larger, well established
firms are better able to forecast space needs
whereas new, start-up businesses must beware of
taking too much space too soon.)
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| b. |
Rental budget: objectives and
restrictions
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| c. |
Geographical boundaries:
multiple locations or consolidation? (For most
companies, your clients care more about your product
than your location. If you can avoid commuting,
you can invest more time with your family or running
your business.)
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| d. |
Amenities: parking, transportation,
cafe, security, bank |
| e. |
Voice and Data: Telecommunications,
redundancy, fiber optics, DSL, cable, generators |
| f. |
Security: staffed guards, cameras,
driving patrol, lighting |
| g. |
Image: Quality of finishes, views,
prestige, signage capabilities |
| h. |
Likes and dislikes in reference to
current building |
i.
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Likes and dislikes in reference to
buildings in target area |
| j. |
Anticipation of future needs to expand,
contract or reconfigure |
| k. |
Understanding of current problems,
concerns & objectives |
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| a. |
Review and consider
property lists, email flyers, subscription-based
websites, Black's Guide, newspapers, Subleases
(discounted opportunities), renewal in existing
building, and email & call brokerage community
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| b. |
Create spreadsheet with detailed
alternatives
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Visit select properties and gain
better understanding of each physical property,
location, and amenities
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| a. |
Create and send out
customized RFP's to short listed buildings' agents
and owners (Always negotiate at least two spaces,
optimally three.)
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| b. |
Each RFP carefully
outlines the tenant's required terms from the
various landlords and will ultimately lead to
securing the most favorable location at the best
possible terms. This process creates a competitive
bidding environment. When this dynamic is in place,
landlords no longer perceive the tenant as a 'captive
audience' - it is the landlord that becomes captive
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| c. |
Proper preparation of terms -
Don't alienate, but get the best terms possible
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| a. |
Design comprehensive financial
analysis of short listed deals
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| b. |
Compare candidates quantitatively
and qualitatively
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| c. |
Determine priorities
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| d. |
Does the CAM seem
accurate and fair? How is the management style?
Do the Landlord and Property Manager appear to
be flexible, fair and fast to respond to tenant
needs?
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| a. |
Negotiate more than one property
and maintain a competitive bidding environment
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| b. |
Continue balanced bargaining -
Don't risk losing credibility or the deal
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| c. |
Successful negotiation
requires knowledge and empathy with regard to
the significant issues faced by the opposing party
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| a. |
Mark-up lease and
draft comments and recommended changes to send
back to the landlord for revision (Broker comments
complement legal review.)
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| b. |
The devil is in the
details. Many tenants simply accept the landlord's
language in the lease and colossally regret this
passive behavior later. If the tenant has never
experienced a casualty like a fire or flood, then
the casualty provisions would likely be glossed
over and not revised; however, in the event of
a casualty, this little provision could massively
negatively impact the operations of an organization
- financially and logistically
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| a. |
Ensure that the final lease reflects
the negotiated changes
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| b. |
Monitor landlord's
compliance with build-out and space improvements
according to the plans and specifications within
the allocated time frame through occupancy
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