STAY PUT VS NEW LEASE
You have been in a workspace for a number of years. You and your employees are happy with the location and could probably make the drive with your eyes closed.
You know your lease expiration is quickly approaching and you, of course, plan on extending the lease. Although providing notice on your current lease may seem like an easy decision, you could be costing your company by not pursuing all options and evaluating the market. This point is when the landlord has all the power, and where a tenant advisor can give you the leverage you need.
So, what does a tenant advisor do? And why would you partner with an advisor?
A tenant advisor works for you and your best interests. Using employee, company, and customer data, an advisor can help you understand your specific needs and assist you with space forecasting for 3, 5 and sometimes 10+ years out. They’ll consider questions such as: how much square-meterage do you really need? What location makes the most sense for you? What rate should you pay compared to others in the market?
So, in summary:
- Tenant advisors bring all available space to the table. While landlord representatives may be biased to the space that they are representing, tenant reps have no allegiance to landlords. This allows you to see the full market and grasp all market options and prices.
- When the tenant advisor compares properties, “apples-to-apples”, they are able to show how “hidden” costs can impact the rental rate per year and over the life of the lease.
- As a tenant, you may see a lease document once every 5, 8, or maybe even 10 years. The tenant advisor see’s hundreds of leases and has the advantage of knowing market averages and what articles may need to be included in the lease. Leases are typically drafted by the landlord, meaning they are written in the landlord’s benefit.
- Negotiations are a process with a lot of back and forth. Since the landlord will be taking care of you and your space for the term of the lease, having a tenant advisor mitigate the transaction can ease any harsh feelings that may occur.
These are just some of the examples of how a tenant advisor can help you gain leverage with your upcoming lease. You owe it to yourself and your company to seek professional guidance in any lease transaction, so get in touch with the right help today.