Benefits of Tenant Representation UNDERSTANDING AGENT VALUE IN THE LEASE PROCESS
Benefits of Tenant Representation TABLE OF CONTENTS
1. Your Trusted Real Estate Advisor 2. Initial Consultation 3. Benefits of Exclusive Representation 4. Locating and Viewing Properties 5. Evaluating Selected Properties 6. Writing Offers 7. Documentation and Closing
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1. Your Trusted Real Estate Advisor Leasing a commercial property can be challenging. A trusted real estate advisor can act as your expert guide, negotiating on your behalf and navigating the multitude of issues, including complicated lease negotiations and construction buildout, — helping you avoid costly mistakes.
Leveraging the Sotheby’s International Realty Brand Sotheby’s International Realty is the globally recognized brand that lends credibility to your offers and elevates your representation. Our success is defined by our deep commitment to our clients. This trust has been built over a legacy of 280 years and counting, with the legendary Sotheby’s auction house representing its clients’ most prized possessions.
Navigating the Leased Property Having an experienced professional in your corner offers a competitive advantage when searching for your commercial lease. An agent’s broad perspective, experience and market knowledge can provide a stabilizing force through what can be a challenging process.
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2. Initial Consultation The initial meeting is important to understand your leasing needs and develop a strategy to complete a successful lease.
Understanding Your Real Estate Goals • • • • •
Leasing timeframes Space needs Location criteria Past experiences with leasing Addressing all business needs
Refining Property Search Criteria • • • • •
Best location within the city Best asset class Price range Specific requirements and non-negotiables Condition of properties
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3. Benefits of Exclusive Representation Our agents form partnerships with our clients, providing ongoing services that famously go beyond the deal. As true advocates, we are accountable from start to finish to ensure that you have the greatest outcome in any transaction. Specific to a commercial lease transaction, we generally follow several phases — with established process flows — to assist our clients through the leasing process, including:
Planning • Define business drivers • Identify location needs based on labor, existing employees, clients • Identify type of space best suited for needs (manufacturing, research and development, lab, data center, warehouse/distribution, office) • Perform demographic mapping to establish location criteria
Programming • • • •
Determine number of employees for immediate and future needs Identify job positions and space needs Benchmark to best-in-class space use, including square footage per employee Evaluate business drivers which may impact occupancy requirements
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Budget • •
Identify real estate market conditions and range of pricing for areas under consideration Identify potential capital required for the project
Schedule • • •
Determine required occupancy date Build schedule with team to meet requirement goals Identify critical dates or potential problems in meeting proposed schedule
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4. Locating and Viewing Properties As your advocate, your commercial team will continually follow local market dynamics and are here to guide you in finding the best commercial property that meets your stated goals.
Real Estate Market Information • High-level market overview highlighting key attributes of areas under consideration • Long-list survey to identify all potential options within location criteria that meet the requirements • Short-list best-suited opportunities that meet your needs and arrange tours • Prepare market survey containing detailed information on each short-listed property, providing information about building, pricing, space available, ownership and amenities • Identify incentive opportunities and compare/contrast each alternative
Tours • • •
Arrange tours of the buildings or sites with the project team Review tour findings with project team and develop list of options for your consideration Complete building or site evaluations for each property under consideration
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5. Evaluating Selected Properties Our process ensures that all properties are reviewed and submitted to you on an “apples to apples” comparison.
Requests for Proposal (i.e., space lease acquisitions) • • • •
Customize RFP for each project Send RFPs from transaction manager to short list of buildings Respond to all questions regarding the RFP Obtain CAD plans for each building
Summary of Proposals (Financial/Non-financial) • Summarize all responses received, in matrix format, on both financial and non-financial basis • Quantify any incomplete or questionable available information • Prepare test-fit plans and construction estimates for each viable option, to determine efficiency and cost variance (prepared by project architect) • Prepare draft of financial analysis based on proposals received and input from architect
Counterproposals • Issue counterproposals to selected options to request clarification of specific issues, confirm items, counter business terms • Summarize responses received and update financial and non-financial summary to include changes • Continue dialogue/negotiations with viable options 8 • Share findings and recommendations with the client
6. Writing Offers Once we have found the property that meets your needs, our commercial team will guide you through the process of submitting the appropriate offer and negotiating your preferred terms.
Offer to Lease • Prepare detailed, non-binding letter of understanding, incorporating all business terms agreed to and outlining key lease issues that must be addressed and agreed to prior to lease • Re-draft as necessary until an acceptable document is produced • Present letter as the basis for drafting lease (to minimize potential deal-breaking issues from arising during lease drafting)
Lease Review Negotiation • • • • •
Review and provide red-lined comments on all lease drafts and distribute to the team Obtain input from the team Coordinate and submit consolidated lease comments to the landlord Coordinate conference calls and/or meetings to discuss and negotiate open issues Provide you with concise updates and/or recommendations on unresolved issues
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7. Documentation and Closing
Your commercial team will provide you with a closing summary for the transaction, including:
Transaction Documentation • Prepare lease summary, highlighting key attributes of the lease for delivery with executable leases if applicable • Include all economic terms and conditions for client review • Provide interface with the required information for submission of executed leases • Monitor the return of fully executed documents • Provide detailed closeout package, including lease abstract
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Nothing compares to what’s next.
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