Know What You Want - Tenant Reps

Chapter 1

Know What You Want

Before you ever start looking at spaces and negotiating prices and terms, take some time as a business to figure out what you actually need from the space that you will be leasing. While every business's needs are different, here are some of the questions that your business should ask itself:

1. How long do we plan to be in this space?

2. What parts of our business will benefit from the space?

3. What kind of people (employees, vendors, customers, etc.) are we serving with this space?

4. What is the role of the space vis-a-vis the company's various branding messages?

5. What type of location in terms of both its physical place in the city and its proximity to transportation and parking?

This process is lengthy, extensive, and potentially costly. Doing it up front, though, will streamline your commercial lease negotiation process and will save you money in the long run.

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Chapter 2

Get Going NOW

In a perfect world, you can get into a space pretty quickly. Find a space, complete a commercial lease negotiation, sign the lease, and get it built out. Worst case, that takes six months, right?

attorneys involved, the negotiating process can take anywhere from one to two months. At this point, we've already spent four to five months.

Wrong.

That's how it works in a perfect world. In the actual world, the right space might not be available, so you either have to wait for someone to vacate it or for a developer to build a building. You might negotiate for a space and lose it to a more aggressive tenant, which means that you have to start all over again. You could run into delays in construction, and you might need time to correct punch list items after you think everything is done. Because of all of this, it's best to

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give yourself at least a year, and possibly more time to complete the entire commercial lease negotiation process.

Learn Why You Need a Tenant Rep Broker on Your Side

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Chapter 3

Organize

While the commercial lease negotiation process is less paper-intensive than it was in in the past, you will still be handing hundreds or thousands of pages of electronic documents. Between initial flyers for the properties you tour, the

requests for proposals (RFPs) that you send landlords, the responses they send you, the letters of intent (LOIs) that you negotiate with them, and the final leases that you, your landlord and your respective attorneys pass back and forth to finally get signed, there's a lot of paper flying around. Given that most documents bring counters, there's even more than most people realize. And it can be very easy to lose track of one, miss a change or miss a date.

While your team can help you with some of these challenges, it's important to get ready for all of the logistical challenges that a commercial lease negotiation presents right up front. In addition to being ready for all of the documents, it's a good idea to organize your time that so that you can review what is coming in and make decisions on a timely basis.

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