York Property Company
Corporate Real Estate | Tenant Representation

The Leasing Process

The leasing process for office and industrial space occupiers can be time consuming.

Tenants can lease space from landlords from a position of strength, or conversely, with an absence of leverage - a position of weakness. When engaged, a professional Tenant Representative will use their knowledge of the market and the dynamics involved to establish the most favorable terms and conditions for tenant-clients.

Following is an outline of the Exclusive Tenant Representative’s leasing process, with important things to consider from start to finish.

Space Needs Analysis

A. Square Footage: Estimate usable square feet needed based on employee count, configuration and design, planned growth, walking corridors, special functions, clear height, dock positions, trailer storage, etc.
B. Rental Budget: Determine objectives and restrictions.
C. Geographical Boundaries: Multiple locations or consolidation?
D. Amenities: Parking, transportation, food service, security, banking and retail support, logistics. E. Voice and Data: Telecommunications, redundancy, fiber optics, cable, and generators.
F. Security: Staffed guards, cameras, driving patrol, and lighting.
G. Image: Quality of finishes, views, prestige, and signage capabilities.
H. Likes and dislikes in reference to current building.
I. Likes and dislikes in reference to buildings in target area.
J. Anticipation of future needs to expand, contract, or reconfigure.
K. Understanding current problems, concerns, and objectives.

Survey the Subject Area

A. Review and consider property lists, email flyers, subscription-based websites, newspapers, Subleases (discounted opportunities), renewal in existing building, and direct communications with the brokerage community.
B. Create Excel spreadsheet with detailed alternatives. Visit selected properties and attain a better understanding of the merits for each location, the building, the interior office space, and amenities.

The Leasing Process Requests for Proposal

A. Create and issue customized RFPs to short listed buildings’ agents and owners.
B. Each RFP carefully outlines the tenant’s required terms from the various landlords and will ultimately lead to securing the most favorable location at the best possible terms. This process creates a ‘competitive bidding environment’. When this dynamic is in place, landlords no longer perceive the tenant as a ‘captive audience’.

Comparative Financial Analysis

A. Design comprehensive financial analysis of short listed options.
B. Compare lead options quantitatively and qualitatively.
C. Determine priorities.
D. Consider intangibles. Does the CAM seem to be accurate and equitable? How is the management style? Do the Landlord and Property Manager appear to be flexible, fair and responsive to tenant needs?

Negotiating the Deal

A. Negotiate multiple properties simultaneously.
B. Continue ‘balanced bargaining’ – Don’t risk losing credibility, or the option that you want/don’t want to lose.
C. Successful negotiation requires a certain amount of knowledge and empathy with regard to the significant issues faced by the opposing party.

Document Review

A. Mark-up lease and draft comments/recommended changes to return to the landlord for revision. (Broker comments complement legal review)
B. Many tenants simply accept the landlord’s boilerplate lease language - and profoundly regret this passive behavior later. If the tenant has never experienced a disaster such as a fire or flood, then casualty provisions would likely be glossed over and not revised; however, in the event of a casualty, this clause could massively adversely impact the operations of an organization - financially and logistically.

Monitor Deal Conclusion

A. Confirm that the final lease document reflects the negotiated changes.
B. Monitor the landlord’s compliance with build-out and space improvements according to the plans and specifications within the allocated time-frame through occupancy.

Landlords engage listing agents to represent THEIR side of the table. Your company’s interests are best served when you engage an experienced Tenant Rep advisor to represent YOUR side of the table. Best of all, there is no charge to your company for our services.

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