One of the biggest challenges of brokerage is managing all of the shifting dynamics and priorities of the various stakeholders. Everybody is busy and the long project timelines make it easy for clients to back-burner a real estate project in favor of more pressing issues. I’ve written before about the importance of leaving enough time … Continue reading Critical dates
Category: Lease negotiations
4 Considerations before you sublease your office
There are a variety of reasons that a tenant might consider placing their space on the sublease market. Whether it’s because you've outgrown the space and need more capacity or business has contracted and there is too much capacity, subleasing can provide some relief from the lease obligation. Here are four things to consider as you … Continue reading 4 Considerations before you sublease your office
What’s your back up plan?
I can't even remember how many times I've had deals go sideways when everything seemed to be going so well. It’s easy to get focused (and lazy) when you have an ideal transaction that should be a win-win. The price is right, the terms are okay, and everything seems to make sense. But for lack of a … Continue reading What’s your back up plan?
Information Asymmetry in Real Estate
Information asymmetry is a challenge that has existed within the real estate industry since the beginning of time. Whether we are dealing with agent-principal conflicts as they relate to adverse selection in a lease negotiations, there is usually one party that has more information than the other. It’s not a perfect market and decisions don’t get made at … Continue reading Information Asymmetry in Real Estate
How’s the market?
It's a question I get a lot, and here's the basic answer: If you hire the right broker, it doesn't really matter. From a tenant broker's perspective, I've seen unbelievably high-priced rents in the midst of "terrible" markets and world-beating pricing achieved in "strong" markets. Instead of thinking about the market in terms of "strong" or "weak," … Continue reading How’s the market?
The biggest secret to successful negotiations
It's simple, really... Have a plan and start early. I wrote about this as part of a post a few weeks ago in relation to the amount of time it takes to complete a deal, but think it's worth adding some detail. Starting early and controlling the pace of negotiations is a very powerful. Time … Continue reading The biggest secret to successful negotiations
Success Story – Home Housewares Company
My team and I recently finished helping a home housewares client restructure their headquarters lease. The project presented some unique opportunities and challenges based on the nature of the business, the average employee tenure, and conditions in the market. The client has been enjoying exponential growth over the past five years. Despite the economy, they … Continue reading Success Story – Home Housewares Company
3 reasons to start negotiating early
I was speaking with a client about his pending lease expiration. He has 13 months before the expiration date and felt there was plenty of time to address the project once the summer comes. He is a major tenant in the building and by his rationale there was no reason to expect that the landlord wouldn't … Continue reading 3 reasons to start negotiating early
3 things about your tenant improvement allowance
The tenant improvement allowance is part of an overall incentive package provided by a landlord to either attract a tenant to their building or retain a current tenant as part of a lease renewal. Here are three things to remember when negotiating an improvement allowance: 1. The tenant improvement allowance is amortized into the lease … Continue reading 3 things about your tenant improvement allowance
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