By hcadmin

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

Tenant Representation, , , , ,
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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By hcadmin

How to Craft a Flexible Lease

Tenant Representation, , , , ,
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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By hcadmin

Relocating? A Guide to How Much Time You Need

Tenant Representation, , , , , , ,
  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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By hcadmin

WATCH OUT!…THE DEVIL’S IN THE DETAILS

Tenant Representation, , , , , , ,
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…
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By hcadmin

Commercial Real Estate Lease vs. Purchase

Tenant Representation, , ,
The purchase side of the lease vs. purchase equation usually comes into play when your company's needs are fixed and predictable for the long term. If you know that your needs won't change for at least a decade or more, purchasing can be a good option. It gives you total control over your space and a great deal of certainty over cost and what you can do with the space since, after all, you own it. Is it best to lease or purchase commercial space? The type of business you have, your future goals, your financial resources and the conditions…
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By hcadmin

The 3 Most Commonly Used Leases in Commercial Real Estate

Tenant Representation, , , , , , ,
There are 3 basic types of leases used in Commercial real estate. They are all complex documents but can be understood when you have some background about the terminology associated with each of them. The three types of leases are: 1. Gross Lease  With a gross lease, also known as a full service lease, the rental rate includes all of the operating expenses for a property, such as the utilities, maintenance, property taxes and property insurance. If these expenses increase over the term of the lease, the landlord typically passes through the incremental cost to the tenant as “additional rent”. Many…
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By hcadmin

Should I Stay or Should I Go?

Tenant Representation, , , , , ,
  As the life cycles of businesses mature and grow over time it becomes necessary to re-evaluate your office space when your lease is coming up for renewal. Square footage requirements factor as just one component of the decision process to remain where you are or look for new space. A comprehensive evaluation also includes the following issues in today’s modern business atmosphere and serve as a guide to stay or go. 1. Are You Using Your Square Footage Efficiently? Take a hard look at where your business is now and where it’s likely to be in 5-10 years. Do…
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By hcadmin

What is CRE Dual Representation?

Tenant Representation, , , , , ,
If you’re involved in any leasing/purchasing real estate process it’s likely you’ve come across the term “dual representation” and it’s basically this: dual agency representation happens when the same broker or firm represents both the tenant and landlord in the same transaction. It’s common to find this happening when big firms are involved in the process. What might seem like an ideal solution at the time can cause problems during the transaction because it’s not possible to represent both parties fairly in dual representation real estate transactions. There are too many conflicts of interest between the tenant and the landlord.…
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By hcadmin

What Should You Expect From Your Commercial Real Estate Advisor?

Tenant Representation, , ,
The logic behind a commercial real estate advisor who specializes in tenant representation is that in order for a tenant to secure the best possible contract terms they will need access to market information, transaction expertise and negotiating skills equal to that of the landlord who utilizes professional representation. Tenants should look for a real estate advisor who specializes in tenant representation with the appropriate market knowledge, relative experience and most importantly is someone they can trust to assist them with an important business and financial decision. Your advisor should: Be willing to invest the time to truly understand your…
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By hcadmin

Considering a Relocation? A Guide to How Much Time You Need

Tenant Representation, , , , , , , , ,
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 that waits until there are only six…
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