tenant representation Archives

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

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…

By hcadmin

Questions to Ask Before Choosing Your Commercial Real Estate Advisor

Choosing a commercial real estate broker/advisor to serve as your tenant representative can be a challenge. Asking the right questions can help determine whether or not a broker is a good fit for you. Here are six good ones and some guidance on what to look for. 1. Does your firm focus exclusively on tenant representation or do you also represent landlords? If the answer is “we represent both” then there is an inherent conflict of interest. To insure that your best interest aligns with that of your advisor, choose a firm that focuses exclusively on representing tenants. This eliminates any…

By hcadmin

The 3 Most Commonly Used Leases in Commercial Real Estate

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…

By hcadmin

What is CRE Dual 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.…

By hcadmin

Here’s What You Should Know if Your Building Has Been Sold

If you occupy a building that’s been sold, be aware of the following changes. One immediate change that can happen is you will have a new property manager. If so you'll be notified of the change of address under the notices provision of your lease. Going forward all rent payments and correspondence will need to go to the new landlord or landlord agent. However, under new ownership your lease terms do not change. Your lease is a legally binding document until it expires. Before the sale finalizes you will be asked by your current landlord/seller to sign an estoppel agreement,…

By hcadmin

A Simple Guide to Leasing Commercial Real Estate

Whether you're getting ready to move to a larger office space or planning to add a second, third, or fourth location to your portfolio, there is a lot to consider when it comes to commercial real estate leasing. Keep the following tips in mind as you move through the process to ensure the best outcome and make the process as smooth as possible: 1. Start the Process Early The search and negotiation for commercial real estate takes much longer than most companies think. Ideally, depending on the size of your requirement, you should begin thinking about your next move at least…

By hcadmin

Considering a Relocation? 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 that waits until there are only six…

By hcadmin

Explore Your Alternatives Before Exercising Your Lease Renewal Option!

Each lease expiration should be viewed as an opportunity to explore and develop alternative space options. Only after an exhaustive search can the decision to either renew or relocate be made with confidence. Needless to say, this can be a lengthy process which should start well in advance of the lease expiration depending on the size of the requirement. If your first choice is to renew, this process will provide the much needed leverage you will need when negotiating with your current landlord. Most commercial leases typically run between 5-10 years. In well negotiated leases there are provisions to the…

By hcadmin

Why You Need An Exclusive Tenant Representative

Leasing Commercial Space is a Risky Approach On Your Own... The process of securing commercial space for your organization, whether it is a new location or extending a lease in your current building, is a complex and time…