The Tenant Representation Process has become increasingly
complex and time consuming requiring multiple steps to deliver the optimal solution in an 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.
Abstract – Review and summarize burdens and benefits of the existing lease. Essential when setting goals and
creating a strategy to achieve goals.
Invoice Review –
Review landlord's invoicing to 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 an analysis, projection and comparison of the Cost of Occupancy for properties being considered. Cash
flow total, net present value & annutized cost comparisons.
Strategic Planning – Develop a consensus on objectives and optimal timing.
Develop schedule for the Transaction Management and begin selection for a team of core consultants including architect, engineer,
project manager, telecommunications advisor and real estate attorney.
Financial, Operating and Qualitative Goals - Meet with decision makers to establish
preliminary financial, operating and qualitative goals and to make decisions as required. Goals are often adjusted as the
transaction management progresses.
Market Analysis –
Create a market report for the target market including the offering facts on 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 often 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 pressure on negotiations and decision making.