Insight - howardcommercial

What Is Exclusive Tenant Representation and Why Do You Need It?

Leasing Commercial Space is a RiskyApproach On Your Own… The process of securing commercial space for your organization, whether it’s a new location or extending a lease in your current building, is a complex and time-consuming process. This endeavor is filled with numerous opportunities to make a decision that does not best compliment your business objectives. Tackling this process without the benefit of an experienced exclusive tenant representative to guide you through the process and structure a transaction that best serves your operational needs and financial objectives only increases the chances of making the wrong move. In my 25 plus…

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Are You Taking Advantage of this Amazing CRE Market?

The increased vacancy in office space over the last 18 months has created a golden opportunity for Tenants. Forward thinking occupiers of office space are looking to take advantage of the reduced pricing in rental rates and the heightened concessions (free rent, tenant improvement allowances etc.) that currently exist in todays “Tenant’s” market. How long this dynamic will last is uncertain. As the economy continues to rebound, absorption of office space will start to accelerate. NAIOP’s latest demand forecast indicates a return to normal (as measured by net absorption) by the second half of 2022. While many companies will…

By hcadmin

Commercial Real Estate Owners…. Are You Prepared for the End of the Cycle?

Commercial Real estate is cyclical. No one can predict exactly when the economy will tip into the next recession, but most experts agree we’re in the later stages of this current cycle. The question commercial real estate owners and operators should be asking themselves is not when the next downturn will hit, but are they prepared for it when it does? Now is the time to take advantage of what’s left of the good times, while money is relatively cheap, vacancies are low and rents are high to prepare for the inevitable downturn. Here are some tips to get you started:…

By hcadmin

Commercial Real Estate Owners…. Are You Prepared For the End of the Cycle?

Commercial Real estate is cyclical. No one can predict exactly when the economy will tip into the next recession but most experts agree we’re in the later stages of this current cycle. The question commercial real estate owners and operators should be asking themselves is not when the next downturn will hit, but are they prepared for it when it does? Now is the time to take advantage of what’s left of the good times, while money is relatively cheap, vacancies are low and rents are high to prepare for the inevitable downturn. Here are some tips to get you…

By hcadmin

Top 10 Tips for Commercial Lease Negotiations

Looking for commercial space? To set yourself up for success at the negotiating table, follow these tips: 1. Prioritize It's unlikely that you'll get everything that you want from a negotiation, so it's important to know what's most important going in. Determine which demands are deal-breakers, highly desired and would-be-nice-to-have in order to help you stay focused. 2. Knowledge is Key Having in-depth knowledge of current market conditions is essential to a successful negotiation. When you can back up your requests with data to show that what you're asking for is “market”, you're more likely to win the landlord over.…

By hcadmin

Your Building’s Been Sold. Now What?

If you occupy a building that’s been sold, be aware of the following changes. When your building sells to a new owner, an immediate change that can happen is that you will have a new property manager. If this happens you'll be notified of the change of address under the notices provision of your lease. All rent payments and correspondence will need to go to the new landlord or landlord agent. However, your lease terms do not change under new ownership. Your lease is a legally binding document until it expires. Before the sale finalizes you will be asked by…

By hcadmin

How to Craft a Flexible Lease

Even if you have a clear vision for your company and a smart strategic plan to help you get there, the future is unpredictable. The office space that’s ideal for your needs today could end up being a less-than-perfect fit before your lease expires. Making your office lease as flexible as possible is a way to hedge against this unpredictability. Here are a few of the ways that you can create a more flexible lease: Consider a Shorter Term “Short-term” lease is a relative term. For a tech startup it might mean month-to-month. For an established law firm it might…

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Looking for Office Space? Follow These Tips

Whether you're looking for your first office for a start-up, are opening a second office or need to relocate, the idea of finding the perfect space can be overwhelming. To simplify the process, follow these tips as you begin to consider office spaces. 1. Start with Location Before you start looking for new office space consider what you need at your new location. Is it advantageous to be in a part of town where businesses similar to yours are located? Do you need to be close to clients or others you do business with? Without question places that are easily…

By hcadmin

Relocating? A Guide to How Much Time You Need

Market conditions, the size and complexity of the transaction, and option notice dates can help determine when to begin the process of evaluating your office lease. Time should be your ally, not your enemy during negotiations with any landlord. Landlords know that other buildings you’re considering will most likely have to create a space plan, get construction pricing, agree on a rental rate, prepare and execute a lease document, apply for construction permits and prepare the space for occupancy. This is, at a minimum, a 4 to 6 month process. So a tenant who waits until there are only…

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WATCH OUT!…THE DEVIL’S IN THE DETAILS

The Restoration Provision When reviewing a multipage, landlord-centric commercial lease it’s easy to get glassy-eyed and often overlook seemingly harmless language. The restoration provision, usually tucked away under the Surrender of Premises Clause in your lease, is a perfect example and could be a potential tripwire hiding in plain sight. It’s a legal obligation for a tenant to restore, at the landlord’s request, the premises back to the condition it was in before you moved in or remove alterations and improvements as the landlord sees fit. This could be a very expensive parting gift to your landlord should they exercise this…