HomeNYC Office Leasing ServicesThomas Birnbaum, PresidentRepresentative TransactionsTenant Representation ProcessAdvisory LettersProperties for LeaseNewsContact NYCRA


 

The Tenant Representation Process has become increasingly complex and time consuming requiring multiple steps to deliver the optimal solution in the ever 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 follow:

 

Lease Abstract – Review and summarize burdens and benefits of the existing lease. Critical 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 & Cost of Occupancy Projection - Create a pre-tax analysis of the Cost of Occupancy with comparison based upon basic rent, electricity, real estate tax and other escalations, commercial occupancy tax and other 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, project manager, telecommunications advisor and experienced office leasing attorney.

 

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

 

Market Analysis – Create a market report for the target market area including the offering facts on a range of select properties. Conduct inspection of properties and create a “short list” of viable alternatives.

 

The Pro-Active Tenant – Users of leased property commonly experience changes in needs over the term of a lease; the need to expand, contract, reduce the cost of occupancy, alter the layout, secure early renewal or termination. Tenants sometimes mistakenly assume that they are unable to address such issues because there is a remaining lease term.  However, the advice of a real estate professional could place such goals within reach. The dedicated tenant representative 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 dedicated tenant representative to advise and assist.  Importantly,  be sure to allow ample time to manage the entire process without undue pressue on negotiations and decision making.

                             

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


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