The only stupid question is the one not asked.
Contact Andrea Davis CRE, and get the answers you need to make the smart decision.
“Andrea Davis CRE did an outstanding job in helping our out-of-state dental company, Magic Smiles, purchase a 7,644 square foot facility in Arizona. Originally focused on leasing, during our due diligence process, we discovered that buying was a better avenue for our business model. Andrea’s market knowledge was invaluable to our business success. She diligently assisted us in every capacity. Her professionalism and extra effort kept us informed and made our purchase a smooth experience.”
John Momtazee, President of Magic Smiles Dental Care for Kids
A company can save time and money by hiring a tenant representation broker to handle its office space needs, just as it would if they hired a lawyer to help with legal matters or an accountant to help with financial matters. As tenant representation brokers, we are mitigating risk and negotiating flexibility into our transactions, which can be extremely valuable to your business.
We take time to understand your business goals toady and in the future to assess the best solutions for you. We discuss if it is best to lease direct from the landlord, sublease, or purchase an asset.
An experienced tenant representative (for lease, sales and investments) provides a vast array of services pulling from years of experience and market knowledge that benefits you. It’s not as simple as just showing buildings – a wide array of knowledge is necessary for every aspect of a transaction.
- Property Identification
- Accurate and up-to-date market information
- Detailed knowledge of lease documentation
- Expertise in the negotiation process of lease or sale terms or investment purchase
- Comprehensive financial analysis helping clients to compare alternatives on an ‘apples to apples’ basis.
- Construction familiarity for tenant improvement negotiations
- Qualified professionals to help with the process such as attorneys, contractors, architects, IT services, etc.
By utilizing the services of a quality tenant representative, a company can reduce occupancy costs, increase profitability, mitigate lease risks and minimize time invested.
All services are provided at no cost to the client. See “What do your services cost me?”
The landlord pays their listing broker a market-based fee (a commission) which is shared with Andrea Davis CRE at the completion of the transaction.
Throughout the transaction, Andrea Davis CRE represents you, the tenant/buyer. Our fiduciary obligation is to you and our job is to negotiate you the best possible market terms. Think of it as having your own “real estate department” complete with the best practice regime, current market research and lease/purchase expert.
The listing broker’s loyalties lie with the Landlord. Their job and fiduciary obligation is to structure the best possible terms for his/her client, the landlord.
In the event you do not engage tenant representation, the landlord pays the entire commission to their listing broker.
See “Will I obtain better economics if I represent myself?”
It’s simple, we care about you.
No. This is the single most misunderstood concept in our business.
There are no savings by representing yourself. Without a complete understanding of the concessions available in the marketplace, coupled with the knowledge of where deals are being done in comparable product, you will ultimately miss out on a below market transaction.
Failing to engage professional tenant representation significantly increases the landlord’s leverage. No matter how nice they are, you are negotiating with a party that is in the business of leasing office space at the highest rate the market will bear.
The landlord funded fee (commission) is paid in full whether or not you engage representation. Landlord’s proforma brokerage fees (commissions) into their annual budgeted forecast. It is a cost of doing business. Tenant representation brokers simply share in the listing broker’s fee, which is an industry standard fee and is spelled out in EVERY listing agreement.
When renewing your current lease, expanding or relocating, it is critical to start early. This allows ample time to ensure a position of strength with the Landlord. For small to mid-sized companies we suggest starting the process 6 to 8 months in advance of the lease expiration or desired move date. For larger companies allow a minimum of 12 to 18 months.
The typical tenant is not aware of the amount of time necessary to effectively renew or relocate a facility. It’s easy to stay focused on running your business and forget about details such as an upcoming renewal notification. When this happens, tenants are often out of time, therefore substantially decreasing their leverage with the landlord(s).
The first is, not leaving enough time for the process. One of the biggest mistakes tenants make towards the end of their lease term is waiting too long before starting the search for new space or beginning the process of negotiating a lease renewal.
The second common mistake that tenants make is not developing legitimate alternatives to their first choice, whether they are interested in new space or a lease renewal.
Here’s why: landlords watch your actions and can quickly see that you don’t intend to move. At that point, you’ve lost all negotiating leverage. Even tenants who have no reason to move must develop alternatives to their current space, otherwise they risk paying above market rents because they forfeit all leverage in negotiating the terms of their renewal.
Tenants often determine that they don’t want to move and plan to renew their lease for another term. Even if you don’t tell your landlord, he will often draw that conclusion from your actions. And once the landlord understands this, a tenant loses their negotiating leverage.
Landlords know it takes time to move a company. They know it takes time to find another office, perform any improvements necessary, change your address, notify vendors and everything else associated with an office move. Landlords know that your options and subsequently your bargaining leverage dwindle, as each day passes.
For renewal, please see: “Why I should engage professional representation to handle my renewal?”
Tenants often develop a friendly relationship with their landlord. Remember, your landlord is in the business of leasing office space and making a profit. Your renewal proposal will seldom be reflective of the marketplace.
To make an aggressive deal on a renewal, you must create a competitive environment for the landlord. Your landlord must know that you are actively exploring the marketplace, evaluating alternatives, and are willing to relocate should an opportunity present itself.
A renewal should carry fair market terms and include the same concessions being offered to new tenants in comparable product. Andrea Davis CRE has the experience and knowledge of the marketplace needed to create that competitive environment, therefore ensuring a fair market renewal transaction.