One of the big questions many office tenants wonder about is how long before their office lease expires do they need to get started on either a renewal or a relocion of their office space. Here is a great article by our Miami Office Representative that should help answer the question.
"When should a company think
about their office lease renewal? The day after they sign their
lease. That might seem extreme, however, most folks wait too long and end
up losing their leverage with their landlord. Typically, I recommend that
my clients begin their lease renewal process at least a year in advance.
There are two reasons.
First, time is your
landlord’s greatest leverage. Your landlord knows that typically over 75%
of its tenants will renew their leases. Your landlord also knows exactly
how long it takes to construct a new space and physically move. If you
call your landlord 60 – 30 days before your lease expires, he already won.
Second, even if you are
determined to move, time slips by quickly. A week of travel, a couple of
days delay while waiting for an architect, attorney or contractor to respond
and suddenly your time line shortens.
It’s never too early to start mapping out your
strategy and preparing a timeline for your renewal process. That’s what I
do every day, so let me help you level the playing field with your landlord. If your Miami office lease is expiring in two years or less, Contact Me today."
This year continues to be a long, slow road towards recovery for your landlord. Some buildings are out-performing their competition while others continue to falter.
The market in general continues to be flat. Most of the lease transactions are renewals and we are seeing very few new companies moving into Miami. Those that are moving into Miami are modest in size. Expansions are equally modest if at all.
Tenants are continuing to be savvy and if they elect to move, they are headed to the nicest building they can afford. Many landlords are continuing to quietly provide generous packages of both free rent and tenant improvements.
The statistics show a lackluster year for the Miami Airport submarket. Although Class A absorption for 2Q is almost 48,000 sf, the Class B and C product had 38,000 sf of negative absorption.
Coral Gables, although a smaller submarket, has slowly been recovering. It's vacancy peaked in 2008. Once 396 Alhambra is completed at the end of this year, it will add another 172,000 sf (3%) of Class A space to Coral Gables' inventory.
Every lease transaction that I am involved in has unique elements to be considered during the process. I offer my clients thoughtful, strategic guidance during this process. Contact me today so we can discuss your specific situation.
Guest Post by our Miami Office Space Tenant Representative (contact)
Here is a great article that describes the process our reps go through to ensure they find you the best possible office space at the best price.
"I was recently asked that question by a reporter from Miami Today. Actually she emailed me the question in advance of an interview. My first off-the-cuff response was “simple, I pull the database, make a bunch of calls, know my buildings and off we go”. Then the next morning during my walk, I began thinking that it’s not that simple.
Before I can search the database and make a bunch of calls, I have to know what I’m looking for. That means a bunch of nosy questions for my client, a walk-thru of their current location and a thorough understanding of their budget, use, employees and a host of other items. With a seemingly ample inventory of office space, on the surface I could have 50 possible spaces for a client. When I began applying the criteria that I develop from my client interview, the number begins to shrink very quickly.
Sometimes it suddenly develops into a search for the needle in the haystack.
When you are interviewing a tenant rep broker to represent you in your search and/or renewal of your office, who is doing all the talking? If it’s the broker, tread carefully. They may not be listening and thus will not completely understand what you need. This can result in wasting your time touring spaces that do not fit your needs and even proceeding into negotiations before discovering a “deal killer” problem with the space or building.
I try to remember the old sales axiom: “You have two ears and one mouth, so you should be listening twice as much as you speak.” The exception is if you make the mistake of asking me about my children.
So how do I find the space? Through a lot of research both with the client and by knowing my market. Contact me me so I can help you with your office lease on the Miami area."
National Office Update & Office Tenant/ User Strategies PodCast Original Air Date: 4/2/11
Very informative broadcast about the office market and office space strategies for office space tenants.
"The office user show provides a national office market update and best practices for corporate office users. Chris Macke, Senior Real Estate Strategist with CoStar Group provides an update on national office market performance including top cities for investment and markets prime economically for corporate headquarters. He also shares market advice for office users and expectations for 2011 and 2012.
Show host Michael Bull and industry leading guests cover current topics important for office users including strategic lease provisions for tenants, protecting lease rights before foreclosure, prevalent lease situations in this economy and the guests share best practices when renewing leases and securing new locations.
If your company uses office space or you advise companies that do, you will find this show very informative and enlightening."
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"I was recently asked that question by a reporter from Miami Today. Actually she emailed me the question in advance of an interview. My first off-the-cuff response was “simple, I pull the database, make a bunch of calls, know my buildings and off we go”. Then the next morning during my walk, I began thinking that it’s not that simple.
