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Entries Tagged as 'Tenant Representation'

Negotiating the Best Lease for Commercial Office Space: An Introduction

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Perhaps you operate a small start-up business that has outgrown your home office. Maybe your company is mid-sized and is growing out of the commercial office space you occupy. Or, you may head a large organization that needs an additional facility to support a new contract. Whatever your situation, you’ve realized that you need to lease a commercial office space.

You’ve begun the search for space. You may have used an online commercial office locator such as Office Finder or you may have search by driving by empty facilities. Whatever method you used, you’ve found the perfect location that suits your every need. It has location, location, location, plenty of parking for employees and customers, good security, and you have decided it is the spot for your organization whether large or small.

Now you are ready to negotiate the best lease possible. The lease negotiation process is much like visiting a foreign country where you do not speak the language. You might walk into a restaurant, thinking you ordered chicken and be served fish.

In order to obtain a lease for the commercial office space, you need an experienced guide who will have your best interest at heart and who has negotiated many successful leases in the past. A lease broker is a necessity. It’s a sure bet that the landlord or property management company offering the lease has plenty of experienced assistance to help them get the advantage. So, protect yourself by following some important processes that can help you negotiate successfully.

In this series of posts we will look deeper into the necessary processes and step:

The Basic Process: In this process we will look into reading the standard commercial office space lease initially offered by the landlord and spotting the points that require negotiation.

The Team you Need on Your Side: Here we will look at choosing a Lease Broker, Space Planner, and Legal Counsel if needed. We’ll determine why this team is needed and what each party will do to help you negotiate the lease.

When Disaster Hits: - What terminology does the lease contain regarding damage, whether caused by you or by an act of nature and who is responsible for what costs. You really want to ensure you protect yourself and your organization when the totally unexpected occurs.

Financial Analysis: How and why do you need to do a full financial analysis on what it will really cost you to lease the commercial property?  The results may surprise you and negotiation points will be revealed that are not apparent by simply reading verbiage in the lease.

Relocation Clause Protection: What happens is your outgrow the office space before the lease ends? What happens if you need to relocate due to property condemnation or any other reason?

Tenant Improvements Allowances and Permissions: This important leasing process determines what tenant improvements will be permitted and who will pay for what. This negotiation point can cost you thousands of dollars if not addressed property. Learn how to get the best lease options in this area.

The Devil is in the Details: The fine print can be difficult to understand but is just as important as any other process of commercial lease negotiation. What details should you and your lease broker discuss in detail and how should they be negotiated to protect your unique interests?

The Final Step, Lease Signing: After negotiating the best commercial office space lease for your organization, it is at long last time for you and your lease broker to sit down at the table with the landlord and his or her team and sign the legal documents after a final review.: 

Lease Office Space

By: James Osgood

Lease Negotiations , Office Leasing Tips , Office Rental , Office Space , Tenant Representation

Office Lease Checklist - Get it done Right!

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We are pleased to announce that OfficeFinder has just added a new up to date Office Lease Checklist. The checklist was prepared by one of our OfficeFinder tenant representative members who has reviewed hundreds of office leases. The office lease checklist covers the most important items to consider when evaluating a lease agreement. Also available from the office lease checklist page is a professional office lease review service that includes a complete lease review, analysis and recommendations for only $395. The review is intended to provide tenants with the information they need to successfully negotiate with their landlord.

Visit the Office Lease Checklist

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By: James Osgood

Lease Negotiations , Office Leasing Tips , Office Space Design , Office Space Negotiations , Tenant Representation

NAR Predicting Improvement in Office Space Market & Increasing Rents

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The NAR quarterly forecast reports that all commercial real estate sectors are on the upswing. Their predictions include that the US office space vacancy will decline by 0.4% to 16% by the 1st quarter 2013. According to the report, office rents are expected to rise by 1.9 percent this year and 2.4 percent in 2013, with net absorption predicted to hit 20.1 million in 2012 and 28.1 million next year. More...

Washington, DC, currently has the lowest office space vacancy rate at 9.5%, with New York City in second place at 10% and, surprisingly, New Orleans at 12.4%. More Office Space Market Information.

What this means to office tenants is that now is the time to lock in long term rental rates to ensure you benefit from the bottom of the market. The best way to do so is by engaging the services of an office tenant representative who can show you how to take advantage of the current low office rental rates. There is no cost to tenants to obtain the services of a tenant rep, so there is no reason not to investigate what they can do for you. It is a no lose proposition.

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Lease Negotiations , Manhattan Office Space , New York Office Space , Office Rental , Office Space Negotiations , Office Vacancy Rate , Tenant Representation , Washington DC Office Space

How Do We Find Office Space For Our Clients?

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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.

Maimi office space tenant rep"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."

Guest Post by our Miami Office Representative

Miami Office Space , Office Leasing Tips , Office Rental , Office Space , Tenant Representation

Are Brokers Really Necessary When Negotiating a Lease Renewal?

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Some property owners of commercial real estate may not understand the reasoning behind why a tenant who has been renting a retail or industrial space for some time, perhaps 5 or 10 years, would want to include a commercial real estate broker tenant representative as an advisor when it is time to renew the lease, change the lease to include an expansion, or agree upon some other transaction with the landlord.

If you think about it, how is a renewal any different than an initial lease transaction? Does the commercial lease not need the same expertise, market and lease knowledge, and experience that can only be assured by engaging a professional advisor? Craig Trbovich, Sales and Leasing Advisor at Commercial Properties, Inc. commented in a LinkedIn Discussion Group, “Even if you have real estate and contract experience, it’s current market knowledge that will be invaluable. And being in the trenches every day is the only way to be current.”

Today, it is critical for top corporate executive to provide the company’s stakeholders with only the best financial decisions to ensure maximum profitability. Yet, a small business or corporate executive is not an expert on negotiating leases for commercial real estate. A professional advisor can help the tenant best determine the answer to questions such as:

·         How large should the leased facility be to need the tenant’s needs?

·         Exactly what configuration of space bets suits the business’s needs?

·         What interior improvements need to be performed and who will pay for these changes?

·         What is the best length of lease term is optimal for the tenant?

·         Should the tenant secure rights for expansion or consolidation?

·         What other options should be negotiated into the lease?

·         Can a period of free rent be rolled into the negotiations?

·         Is the landlord and building in good financial condition?

·         Should relocation be seriously considered?

The owner of the commercial real estate being leased would probably quite pleased if the leasing business does not want a tenant representative because negotiations will likely be very easy and the landlord will get options that benefit them rather than the business. Daniel Rudd, Executive Vice President and Office Broker at Colliers International states, “It is short sighted for a tenant not to have representation and the tenant is ceding the landlord an incredible amount of leverage.”  With a broker, the tenant can be assured they have someone fighting for their right and making sure their best interests are covered. 

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Lease Negotiations , Office Leasing Tips , Office Relocation , Office Space Negotiations , Tenant Representation