At Advantage Tenant Leasing, we understand the importance a lease can have on the profits of your company. The following guide is meant to help you with the issues and the risks you face as your expiration nears. Whether you choose to work with Advantage Tenant Leasing for your lease renewal or possible relocation, we’re confident this information will serve your practice well.
If your landlord thinks you’re going to stay he will assume that he has no competition. Therefore, the options that you have are limited to his building and this gives him a stronger negotiating position resulting in higher costs to you.
This won’t happen if you have a plan that explores your options. The plan will not only let your landlord know that you may have interest elsewhere, but it also provides you much needed leverage and market knowledge assuring you the best lease terms possible.
Leases are designed to protect the landlord’s property, ownership rights and lending institution. It’s this situation that creates the need for conflict-free, tenant representation. Pay attention to which firm represents building owners and consider hiring a firm who’s job isn’t to represent the best interests of that landlord. It’s impossible for a commercial real estate company to represent the landlord's best interests while also representing tenants best interests.
Building owners typically make more profit in a simple renewal than in leasing to a new tenant. Understanding this dollar amount is imperative in winning back a portion of this in exchange for renewing your lease. Despite what your relationship is with your landlord, their interests are often not aligned with yours.
Negotiating is time consuming and downright painful if you have no leverage. Creating leverage requires a well developed real estate strategy backed by relevant market information and options. Unless you’re able to present viable options backed by strong financial analyses’, your landlord will be unwilling to negotiate substantive points within your lease.
It’s true that you may love your office space and want to stay, but appearing as if you’d like to relocate provides much needed negotiating leverage. Also, you may find space in another building that better suits your needs, provides more amenities and increases visibility, thus business.
The longer you wait to start the planning process, the greater the likelihood that you’ll be forced to live with the terms that are offered. Have a real estate strategy developed one to two years prior your lease expiration.
At Advantage Tenant Leasing, we turn real estate into a strategic advantage. Your leasing will conform to your business goals while providing the flexibility your business may require due to unexpected changes in the economy.
Our approach is simple. We represent only tenants and provide a conflict-free, fiduciary relationship that tenants need. Overhead costs are the second most costly line item next to an organization’s employees so it’s vital to be represented by a firm that only represents tenants and their best interests. Our client’s typically reduce their costs up to 35%.
If you find yourself within two years of your lease expiration it’s time to develop a real estate strategy with a tenant representation firm. Call us today to learn more about our complimentary, tenant representation services.