TENANT BROKERAGE

"WE CAN SAVE YOU MONEY...

AND GIVE YOU TIME!"

Every business property is represented either by the owner’s broker, an employee of the owner, or the owner himself. Neither of these scenarios place your interests above the owner’s. Negotiating leases is their business. You may negotiate a lease every five years. A landlord and his agent do it every day…So do we.


Your tenant broker splits the commission that the landlord pays his broker, so at least half of the brokerage commission is working for you when you have your own, designated tenant representative broker – paid for by the Landlord. 
 

Other considerations which we may advocate on your behalf:

  • How will your space be measured? Will you pay for space occupied by utilities, columns, etc.?

  • What will happen if larger tenants expand? Where will you be moved? Will the space be as good, the view as nice, access as convenient?

  • What if you expand?

  • What’s the current status of larger tenants in the building? Who are they? What kinds of people come to do business with them?

  • Beware of government office neighbors. Government offices can mean demonstrations, pickets, media crowds, all of which can disrupt your business.

  • Is there a welfare office in the building?

  • What’s the quality of elevator service? Is there an adequate number? How fast are they? Do multi-floor tenants dominate elevators?

  • Are stairways and hallway restrooms locked for security?

  • Where will you park?

  • If the building has a parking garage, will you receive free spaces with your lease, or reduced fees? Is it lighted well?

  • Who will pay your moving costs? In a soft market, landlord participation in moving expense. Free rent and parking spaces are not unusual lease perks.

  • What does the lease stipulate about sub-leasing or outright termination?

  • Beware the word “reasonable.” Define “reasonable” in the lease.

  • Is your space build-out allowance adequate to do what you need? Whose contractor will do the work? Will there be three bids? If the work costs less than the allowance, who gets the savings?

  • Do you want to share a building with competitors? Will the landlord include in the lease exclusivity for you?

 

These are some of the extraordinary number of details involved in a satisfactory lease. Building ownership may change during your lease. A previous owner’s promises are worthless unless they are written in the lease. We will guard your interests in every detail before you sign a lease. You have no negotiating room later.
Never wait to negotiate renewal.


Many tenants put off renewal negotiations until too late. They end up with no options, and become a captive market for the landlords. That’s why renewal rates offered to existing tenants are from 5 percent to 38 percent higher than rates offered to new tenants.


You should begin negotiating lease renewal no less than 12 months before your current lease expires. If you lease 20,000 sq. ft. or more, we should begin 18 months before expiration. It will give us time to develop options, and only when you have options do you have negotiating power.


One of the most critical aspects of leasing is to develop as many options as you can. The greater your options, the greater the likelihood that you will find the right location for you, and that you will not leave money or benefits on the table in lease negotiations.


The more options you have, the more negotiating leverage you can wield. You can make comparisons between locations, buildings, building management, rental rates, amenities, and extra benefits, such as parking and sub-leasing privileges.
We maintain data on all buildings in the market, comparable rates and amenities, and have a broad market knowledge of building advantages and disadvantages.


Don’t forget, every landlord has budgeted in your rental rate an amount for brokerage commissions. Since you’re paying for it, you should see to it that some of this money works for you, rather than going 100 percent to the landlord’s broker, whose interests are the landlord’s, not yours.

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