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The Tenant Representation Process has become increasingly complex and time consuming requiring multiple steps to deliver the optimal solution in a changing market. Tenants must think strategically to manage the risks inherent in an office lease transaction and this necessitates reliance upon the unbiased information and advice of a real estate professional.  Basic steps include:

 

Lease Abstract – Review and summarize key business and legal issues in the existing lease to understand the rights and the obligations of the parties when setting goals and creating a strategy to achieve those goals.

 

Invoice Review – Review landlord's invoicing to determine if the billing is appropriate. Review could uncover improper or erroneous charges but is not intended to serve as an audit. Results will serve as the basis for a Cost of Occupancy analysis and projection of the existing obligation to determine the impact that obligation could have upon a new transaction whether a restructure, renewal or relocation.

 

Financial Analysis & Projection - Create a pre-tax picture of the Cost of Occupancy and comparison based upon basic rent, electricity, real estate tax and other escalations, commercial occupancy tax and related costs for properties being considered.  

 

Strategic Planning – Achieve a consensus on objectives and optimal timing to engage the market. Develop schedule for the Transaction Management Process and begin selection process to create a team of core consultants including architect, engineer, construction consultant, telecommunications advisor and experienced office leasing attorney.

 

Financial, Operating and Qualitative Goals - Meet with decision makers to establish preliminary financial, operating and qualitative goals. Goals are often adjusted as the transaction management progresses.

 

Market Analysis – Create a market report and analysis for the target market area that includes offering facts on a range of select properties including vacancies and current asking rentals. Inspect properties and create a “short list” of viable alternatives.

 

The Pro-Active Tenant – Users of leased property commonly experience changes in needs during the term of a lease; the need to grow, shrink, reduce the cost of occupancy, alter the layout, to secure an early renewal or relocate to a more appropriate location. Often tenants assume that they are unable to address these issues because there is a remaining lease term.  However, information and advice of a real estate professional could place such goals within reach. The real estate professional will strive to deliver flexibility in a new transaction that anticipates changes and manages risks. 
 
A pro–active approach by the tenant is the first step in the tenant representation process. Seek and secure an experienced, intelligent, energetic and unbiased tenant representative to advise and assist.  Allow ample time to manage the entire process without undue pressue on negotiations and decision making.

                             

Meet with NYC Realty Advisors LLC. to discuss your particular issue. No fee or obligation for initial consultation.


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