Why Tenant/Buyer Representation?
Leverage Time, Personnel, and Real Estate Leasing or buying office or industrial space is a complicated business decision that has an impact on an organizations financial position. As in any business decision the more accurate the information and assumptions used the better the decision. An organization can leverage market knowledge by utilizing a licensed real estate broker as its representative. Time can be leveraged two ways
1. Adding a temporary member to your staff for a specific project.
2. Allowing enough lead-time for the decision process.
On a super-fast track the process of looking for small offices could take 10+ weeks. Looking for larger offices such as 20,000 square feet to 100,000 square feet could require 9 to 36+ months. Besides identifying the location, time must be allowed for design of the space, lease negotiations, legal review, signing, construction pricing, any required permits, and then the actual construction of tenant improvements.
Part of being well represented is being well informed. Sometimes the result of an extensive site search is a lease renewal. In cases such as a lease renewal the knowledge gained by going through the entire decision process, which includes receiving lease proposals, assists in creating competition for and educating the existing Landlord. It has to be real competition, not just a list of available spaces, not a bluff.
Some of the issues in the process include:
• Type of space
• Geographic area defined
• Estimated budget
• Customized market survey
• Property tour
• Preparation of request for proposals
• Analysis and comparison of terms offered
• Tenant selection of site
• Architect for space planning and Building evaluation
• Space planning for Short listed Buildings
• Lease negotiations
• Comparison of Proposed Lease terms- non-legal
• Projections & Comparison of Occupancy Cost over lease term
• Lease Verses or buy
• Renew or relocate
• Overpaying or Market Comparison
• Growth and /or reduced capacity
• Future relocations
• Analyze the market from the tenant’s point of view.