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Entries Tagged as 'Tenant Representation'

What does a Tenant Rep do?

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The following is from our OfficeFinder LinkedIn group discussion on the most importnat activities Tenant Reps provide their clients on addition to just finding space:

boston tenant repI believe the top Time & Money saving services that we provide to clients all revolve around the Transfer of Specialized Knowledge to the client, so that they may make the most informed decision. Up to date market information, understanding the players involved, defining and executing the process required for a successful outcome and most importantly, proactive advocacy, each individually represents significant savings for a client.
Mike in Boston

 

Tenant RepAvoiding mistakes is another important aspect of why tenant representation is so important for office tenants. We do this every day, just like the landlords and listing agents. Tenants only search and negotiate for office space every few years. Landlords and listing agents love to see tenants coming unrepresented. It makes their business much more profitable than when a tenant is represented by experienced and knowledgeable tenant reps...like the ones we have at OfficeFinder!
Jim - OfficeFinder Founder

 

St louis Tenant Rep We provide lease digests and early reminders of important dates i.e. rights and renewal options. We also place these dates on an earlier call up internally so that we remind the tenant that they need to be addressing their real estate needs, even if their intent is to renew. We also assist with renewals. In today’s market the lease signed five years ago is most likely far above today’s market rates.

A 10% discount off of today's asking rate may sound good however, the market may be giving a 25% discount. Only through the use of their own broker can a tenant gain an accurate opinion of today’s market.

Any business who leases office, retail or industrial space expiring within the next 6 to 18 months should be talking with a broker to represent their interests. This not only pertains to renewals subject to negotiation but also pre-stated rent renewals. This is also a good time to negotiate terms and conditions not included in the original lease.

We have a good system in place and when started at the right time in the renewal process, we have been successful in leveraging our position, procuring rent reductions and changes in other terms beneficial to the tenant. We've also been able to facilitate early renewals where the tenant benefits from the negotiated terms and conditions sooner than later.

Lynn in St Louis

Orange county Office Tenant repThere is no question as a tenant representative we can all save our clients real money in the transaction and "time" money by not only doing things they would have to do but also the fact we know what to look for in the first place.

We might want to consider the money we can save clients by handling non-transactional issues after the lease is signed. Two examples: 1) client is a 501C-3 teaching museum- eligible for property tax relief. Worked with county and LL-client received over $100K in refunds over 12 years. 2)Client located in Enterprise Zone. Another client/accounting firm specializes in that area of tax. Put them together...anticipate over $500K in saving over next 6 years. There's a lot more we can do than just focus on the transaction. Just my $.02 :)
Jerry in Orange County, Ca

Office Leasing Tips , Office Space Negotiations , Tenant Representation

Third Biggest Mistake Made By Tenants

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Failure to understand all the office leasing costs

There are more costs involved in leasing office space than just the rent.  Many of these costs are quoted in different fashions so it can all get quite complicated when comparing alternatives. It becomes difficult to compare proposals on an apple-to-apples basis. In fact, it can even become difficult for an inexperienced tenant representative to decipher the various costs involved in comparing different office space alternatives.

First of all, there are different lease types including full service, gross, semi-gross, net, triple net and other variations which specify which, if any, expenses the tenant pays.

How about the base year for operating expense pass throughs? This is the base year amount of operating expenses that your additional costs are based on. If you don’t pay attention or don’t know you could find yourself liable to pay for increases over a base year that could be 5 year old and cost you several dollars per square foot right off the bat. What if the building is only 25% occupied? Who will pay for the operating expenses on the vacant space? What is the norm for your market?

If your lease is a triple net lease are the expenses in line with what could be considered normal in your market or are they somehow higher due to extra landlord fees?

There are also different levels of tenant improvements which can be included in the lease. Landlords will very often offer a per square foot allowance for tenant improvements. Is this on the net rentable space or usable area or is it from shell condition or below the ceiling?

Another big one could be the load factor in calculating useable vs. rentable space measurement. It is the percentage of space on a floor that is not usable plus a pro-rata share of the building common area, expressed as a percent of Usable Area. It is also known as the Common Area Factor or the Loss Factor. A Typical load factor range is 10% to 18%. Some inefficient buildings can have load factors as high as 25% or more. Once again, what is the norm in your market?

The answers to these questions can make a significant difference in the overall cost of renting office space. Which is why making mistake number one in this series can be so damaging. Understanding all of the leasing costs and being able to communicate that information to you is an important part of what a tenant representative does. It can save you thousands of dollars in avoiding mistakes. Tenant representatives provide many more services to their clients and there is no cost to you in engaging their services. It costs you nothing, but can save you thousands.

Biggest Mistake Made By Tenants
Second Biggest Mistake Made By Tenants

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

The Biggest Mistake Made By Tenants

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The biggest mistake made by tenants looking for commercial office space is not engaging the services of a tenant representative; thinking it will cost them money. It doesn’t.  A good tenant representative, like the ones we have at OfficeFinder, is invaluable in making sure you find the right alternative, negotiate the best possible deal and avoid costly mistakes. They do this every day and only get paid when you get what you want. And you don’t even have to pay them. It costs you nothing. Most Landlords hire listing agents and the tenant rep will share in that fee.  If there is no tenant rep, the listing agent keeps the entire fee and you are on your own. Tenant rep services will save you money by making sure you do it right with solid information and advice.

Many tenants don't understand what a good office tenant representative does. A tenant rep does more than just find office space. A good tenant rep will coordinate the entire office leasing process from helping you define your needs all the way to ensuring your space plan works for you. In between, an office tenant rep will not only find suitable alternatives, help you negotiate the deal, but also help with information, advice, space planning and lease review.

Here are just a few of the many comments from businesses who have taken advantage of using an OfficeFinder tenant rep:

Our OfficeFinder rep did more than I ever thought that this free service would. I hope that this man gets a Raise. He really went above and beyond the call of duty. I thank him very much.
Elizabeth M. Palmisano - Phoenix, Az

The amount of information I received and the professionalism of our OfficeFinder rep was astounding.  His knowledge and understanding of what I needed was overwhelming. He will always have my business, and I have no need to recommend anyone else.
Chris Van - Level 7 Productions - Los Angeles, Ca

I have never rated anyone at this high of a level but Jeff, our OfficeFinder Rep is exceptional.  I don't know how he could exceed the level of service he has provided for us.  I will not only recommend him to others, I will look for opportunities to recommend him.
Michael Shovlain - New Life Outpatient Center - Davenport, Ia

Thanks for your follow up.  Our OfficeFinder rep has been extremely helpful in assisting us to find the proper offices over the last several months.  We are now in our new location and I frankly don't know how we would have done it without him.
Jenny Makakoa - Xinify Technologies, Inc - San Ramon, Ca

Find a Tenant Represenative

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

Find Office Space Quickly

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You’re an entrepreneur who’s excited to start up or grow your business. However, although it’s tempting to work from home, you realize you want a corporate location that doesn’t include kids’ toys and a laundry room. But where can you find office space for lease quickly and easily?

Ironically, finding office space is as easy as heading to your computer! In the age of the Internet, small business people like you can locate office space all over the world with just a few strokes of the keyboard. Of course, you first have to make a few decisions in order to expedite your office space finding experience:

1. Determine where you want to work.

Are you going to look for office space in your hometown or are you willing to commute to a neighboring city? It’s important to think about what type of work you do when considering this. For instance, if you’re going to host many clients at your office space locale, you’ll want to pick a place that’s convenient for them (rather than convenient for you.) If you’re not planning on having many on-site client meetings, a more out-of-the-way office space may be acceptable.

2. Figure out how much office space you need.

Will 200 square feet be enough for you? How about 500 square feet? Or do you need much more? If you’re not certain what such a space looks like, it’s easy to map it out at home. Just pick a rectangular-sized room and measure the walls in feet. Then, multiple the long side by shorter side. Thus, a 12 foot by 10 foot living room would be 120 square feet. A rule of thumb for conventional office space is about 200 square feet per person. To get a better idea, try our office space calculator or visit our space standards page.

3. Decide if you want to share an office space with someone else.

If you’re not in competing businesses, sharing office space can make a great deal of economic sense, especially for entrepreneurs. For example, you could potentially purchase a larger office space than either of you could afford individually as well as share the costs such as heating and electric. Additionally, you might be able to eventually share a receptionist. Executive Suites and virtual offices are also an option.

4. Determine what kind of office building in which you’d like to work.

Are you the type of person who likes to work in a corporate office space? Then you’d probably do well in a large building that was built specifically for commercial offices. On the other hand, if you’re looking to have a “homier” atmosphere for your business, you may want to seek out a nontraditional office space, such as one that’s part of what used to be a Victorian home or a red brick schoolhouse.

5. Figure out what your budget is.

Finally, before you start looking for office space, you’ll need to figure out how much you can reasonably afford. It’s always a good idea to take this step before ever jumping on the web to look for a location for your business. That way, you won’t be tempted to incur more debt than you can actually afford. our office market information in the OfficeFinder Local can help get you familiar with what is happening in your market.

6. Get professional assistance.

There are agents who specialize in representing small businesses like yours find the right office space and make sure you avoid mistakes. Using a tenant representaive won't cost you anything. All the fees are paid by the landlord. OfficeFinder is a good place to start with local reps inover 550 markets.

Remember – if you need an office space, it’s as easy to find as your keyboard and mouse!

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

A GREAT Time to Renegotiate Your Office Space Lease

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With office space vacancy rates at recent time highs, office rental rates down as much as 30% in many office markets and no bottom found in the woes for office building owners, now is a great time to renegotiate your lease. Even if you have 2 or more years left on your current office lease you may be surprised at the willingness of landlords to renegotiate. It is not a market specific phenomena, but one that is nationwide. It doesn't matter if you lease office space in Manhattan, Chicago, Houston, Denver, Los Angeles or even small markets such as Fresno, Raleigh or Rochester. Every office space market has been affected.   Many office building owners are having financial difficulties not only on the occupancy side, but also on the mortgage side. If a landlord has a refinance coming due, you may find yourself in a great position to blend and extend.  What this means is that you would extend your office space lease for another 3 to 5 years at a lower rate in order for the landlord to show to their office building lender that they have long term office space tenants.  No office building owner will agree to reducing a financially strong tenant's rent, unless the restructured agreement provides them with some sort of economic benefit. In this case while you are paying less rent, it turns out to be a win-win situation since your new lease will help in the refinance process for the office building owner.

How do you get this process started?
The best way is to contact your Local OfficeFinder Office Tenant representative. Office Tenant Representative services won’t cost you anything and they are professionals at negotiating office leases. OfficeFinder Office Tenant Reps average over 12 years of experience and many have advance designations earned though demonstrating their skills and knowledge. It is a no lose proposition for you. Give them a try. There is no obligation.

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