Offered by: Blaine Hardy, CCIM and Jill Hardy, Realtor
The number one mistake made by tenants is waiting too long to begin the process of negotiating the lease. The process should begin 6 months prior to the current lease expiring or 9 to 18 months for users who need more than 20,000 sq ft.
No time to waste. Most decision-makes do not have the luxury of devoting substantial portions of their time to a successful relocation.
What about the Broker's fees? Most building owners are represented by an exclusive agent who shares the fee with the tenant's broker. The fee is not discounted just because the tenant walked in the door without representation. And, as in the legal system, who wants to be represented by the opposing lawyer?
Choosing to stay or move. Landlords are competitive only when they need to be. When landlords know that relocation alternatives are abundant and tempting, they are likely to give more concessions.
Discounted cash-flow analysis of the various alternatives and evaluations of free rent, tenant improvement costs that go beyond standard building allowances, parking charges, lease rent increases, operating expense calculations, and options to renew and or expand are all useful reports that can be provided.
Developers and landlords know that tenants with experienced tenant representation are aware of competing buildings and can switch negotiations if transactions do not proceed smoothly. This alone can save tenants substantial amounts of time and money.
Experienced tenant representatives understand the needs and requirements of tenants and landlords, and they are able to serve both parties fully. Lease contracts that used to be a few pages long are now commonly 20 or more pages. The bottom-line effects of an improperly negotiated lease contract can have long-term devastating effects on the tenant. |