About Commercial Property Brokers - Using a qualified commercial property broker will save you time and money. Not only will your broker do much of the grunt work, your broker will possess a deeper market knowledge, and better market information.

About Commercial Property Brokers - A qualified commercial property broker will put you in control of your lease transaction. Since you are the one who will live with the lease, control is exactly what you need.

About Commercial Property Brokers - Real Estate brokers are either specialists or generalists. In leasing, you need a specialist to work for you in attaining your best results.

About Commercial Property Brokers - Commercial leasing brokers fall into two categories: full service brokers, who serve as agents for both landlord and tenant; and tenant-only representatives. You will benefit from attaining the skills of a tenant rep.

About Commercial Property Brokers - When encountering anyone representing a property of interest to you, be sure to ask if they are an agent, or an employee of the owner. This will protect your interests.

About Commercial Property Brokers - Agency is an action; if a real estate licensee acts as your agent, they become your agent. A broker owes you a fiduciary duty. In other words: an absolutely faithful duty to perform in your best interest, and to do no harm.

About Commercial Property Brokers - Dual agency occurs when one agent works for two opposing parties in the same transaction; for a landlord and a tenant. Dual agency must be disclosed and all parties must agree to accept the dual agency scenario.

About Commercial Property Brokers - Any broker, even a tenant rep, can inadvertently become a dual agent in a transaction by performing an agency action for the other party.

About Commercial Property Brokers - Experience is the most important factor in choosing a broker. In evaluating experience, consider both the depth and the volume of experience.

About Commercial Property Brokers - A full service broker receives as well as initiates transactions. They develop strong problem solving and negotiating skill. Full service brokers often work on more transaction than their tenant rep counterparts.

About Commercial Property Brokers - Brokers are paid upon the completion of the transaction, and not paid if the transaction fails for any reason. Commissions are calculated in two ways: a percentage of the rent for all the years of the lease; or a certain number of dollars per square foot based upon the lease term.

About Commercial Property Brokers - When a broker's commission is a percentage of the rent for all the years of the lease, the amount payable declines with the length of the lease. On a fixed amount per square foot commission, the amount per square foot declines at fixed stages for the length of the lease.

About Commercial Property Brokers - When hiring as broker, select one qualified specialist in the area and type of property you desire, and enter into an exclusive agreement with that broker.

About Commercial Property Brokers - To protect your interests, put your agreement with your broker in writing and include the right to terminate the agreement on five to ten days written notice. IN this way, you can end the relationship quickly if your broker is not doing an outstanding job for you.

Timing Your Transaction - You should begin your relocation efforts 4-8 months before your move date. By planning well in advance, time will be your ally, not your enemy.

Timing Your Transaction - If time becomes an issue in your relocation process, keep cool; most economic concessions are made right before the deadline of the transaction. You should avoid telegraphing your need to close quickly. Rather than reveal you are under time pressure, attempt to work out alternative solutions with your existing landlord.

Timing Your Transaction - In addition to beginning your relocation efforts 4-8 months in advance of your move date, establish a time line of the leasing process. This will help you to accomplish all of your objectives in the right order, and in time.

Timing Your Transaction - Develop a complete definition of your requirements. This could include meeting with all managers, department heads, and perhaps your architect. Conduct broker interviews.

Timing Your Transaction - Begin to survey the market locating available properties meeting your requirements. Conduct inspection tours of the most desirable properties.

Timing Your Transaction - Make preliminary proposals, and open negotiations. Commence the space-planning process, allowing 1-2weeks turn around for plans. Cost estimates can take up to another 2 weeks.

Timing Your Transaction- Review responses, evaluating counter-offers. Review space plans, and cost estimates

Timing Your Transaction - Once an economic agreement is reached, and space planning is competed, it will typically take 2 or more weeks for review of the legal documentation.

Timing Your Transaction - Lease contract negotiations take place. If all has gone smoothly, you could find yourself at the point of signing a lease.

Timing Your Transaction - Working drawings for your tenant improvements, based upon previous iterations of your space plan, will begin after lease execution. Allow 2-3 weeks for these plans to be completed.

Timing Your Transaction - Permits and any required engineering can take from 2-6 weeks (or longer) depending on the various approvals required. Some owners will start construction upon application for permits to expedite the occupancy.

Timing Your Transaction - Depending on the size of the job, you should allow 8-12 weeks for the physical construction.

Timing Your Transaction - Based on a typical time line, you should allow 19-26 weeks for relocating, if everything goes well. If time is short, there are some short cuts, but they may be more costly. An alternative is to limit your choices to buildings with space that comes very close to your needs, and make only minor alterations. Or you can always look for sublease space meeting your requirements.

Steps of Commercial Leasing - There are a number of important questions to ask to accurately define your requirements. doing this in advance will save you time, and avoid starting in the wrong direction. Committing your requirements to paper will also help as you visit properties to make sure nothing is overlooked.

Steps of Commercial Leasing - As a broker, there are a number of questions I ask my clients to help them move from a rough idea of their needs to a clearly defined objective. You will use this information to screen out unsuitable properties once you start to make calls on available sites.

Steps of Commercial Leasing - Some examples of Location questions: What area and vicinity is of most interest to you? Is a view important? what is the lowest floor your company would be willing to locate on? How many people will be employed at this location? What is your annual budget? What length of lease is preferable? What are your parking and transportation needs?

Steps of Commercial Leasing - Some examples of Space Configuration questions/concerns: number & size of private offices, other offices, open workstations, conference rooms, storage/supply rooms, filing cabinets. How large a reception area is required/desired? Any special electrical needs? Special heating, ventilating and air conditioning? Americans with Disabilities Act compliance.

Steps of Commercial Leasing - When touring potential locations to lease, you are likely to be asked some qualifying questions. You might want to think about what information you are prepared to give up, and what you will want to hold back. In negotiation, information given too quickly can compromise your bargaining power, especially if time is short.

Steps of Commercial Leasing - Some examples of Qualifying Questions owners/landlords might ask: When does your current lease expire? What is your budget? What else have you seen? Why do you have to move? Do you have any other options? Are you working with a broker?

Steps of Commercial Leasing - As a rule of thumb, for office users, plan on between 150-250 square feet per person. As leases generally run from 5-10 years, remember to anticipate personnel growth in your calculations. A qualified broker can ease these calculations for you, and will consider many factors unknown to many.

Locating Suitable Properties - The best time to drive the market is early Sunday morning. There is virtually no traffic, it is easy to pull over and capture an address and phone number.

Locating Suitable Properties - In deciding on suitable properties you visit, the super high-tech, using a digital camera with voice recording capability will save you time and effort.

Locating Suitable Properties - When touring the properties which most closely meet your requirements, it is important to be prepared to ask the most important questions first. Review your list of questions beforehand, and rank them; a 3 beside anything you cannot live without, a 2 beside that which is very important but you might be able to work around, and a 1 next to those desirable-but-not-necessary items.

Understanding Rental Rates - Normally, the rate quoted reflects the amount of rent you pay per square foot. Generally, square foot prices are quoted on a monthly basis. However, there are markets quoted on an annual basis. Urban office leasing is generally quoted as an annual rate, while industrial and retail are typically stated as monthly rates.

Understanding Rental Rates - An essential question in comparing the final cost of leasing one property to another: "Please tell me all the things I will be paying for, that are not included in the rent?"

Understanding Rental Rates - When it is time to make your screening calls, there are two objectives: decide which ones are worth the time to inspect, and obtain written information and floor plans of the offering.

Understanding Rental Rates - Normally, the rate quoted reflects the amount of rent you pay per square foot. Generally, square foot prices are quoted on a monthly basis. However, there are markets quoted on an annual basis. Urban office leasing is generally quoted as an annual rate, while industrial and retail are typically stated as monthly rates.

Understanding Rental Rates - An essential question in comparing the final cost of leasing one property to another: "Please tell me all the things I will be paying for, that are not included in the rent?"

Understanding Rental Rates - When it is time to make your screening calls, there are two objectives: decide which ones are worth the time to inspect, and obtain written information and floor plans of the offering.

Understanding Rental Rates - Understand that commercial space often needs to be modified to meet the needs of the tenant and rarely do the existing conditions of space precisely meet the needs of the incoming tenant. Landlords anticipate this and are prepared to negotiate improvements for the tenant.

How Space is Measured - Gross square footage is most typically used with warehouses, industrial buildings and other stand-alone buildings, such as freestanding retail sites. Typically, the calculation will include the thickness of the side walls when measuring the total footprint of the site.

How Space is Measured - The actual square footage that an office-user may occupy is typically less than the amount upon which the rent is based. The square footage you use exclusively is termed "usable square feet" and the amount upon which the rent is based is called "rentable square feet." When using a broker, ask for a lease analysis of both the rentable and the usable square footage.

How Space is Measured - An office plan that calls for a high percentage of interior partition walls can integrate columns well into the plan, often affording striking design elements. While open plan users may find that too many columns can increase the cost of furniture systems and in crease their square footage requirements.

How Space is Measured - Private office intensive users need to look closely at how window spacing affects office sizes, particularly where a mixture of office sizes is desired. The dividers between windows are referred to as "mullions." The difference 4.5-foot mullion and a 5-foot mullion can mean a dramatic difference in office size without a substantial benefit in usability.

Touring the Property - Try to set up your inspection tours in groups of 3-4 buildings at a time; about 30 minutes per property plus travel time will be sufficient. This way you can more readily compare the features and benefits of the properties while the impressions are fresh in your mind. Also, be sure and ask your broker for a Tour Site Checklist.

Creating a Proposal to Lease - If you are negotiating for more than one space, I advise you not to go much beyond the 1st round of proposal responses or into multiple space-planning sessions without informing the property owners. Creating competition in a softer market can work well I your favor, so letting the other side(s) know you have other options can garner some nice concessions.

Creating a Proposal to Lease - In preparing letters of intent, I prefer the approach which makes the proposal simple. This means to gain agreement on the big issues first and set aside smaller issues to work out later in the lease negotiations. This negotiation strategy relieves much of the inherent tension in negotiating, and makes agreement on the side issues easier to obtain.

Creating a Proposal to Lease - Negotiation tip: an owner might be more willing to grant rent abatement if you propose half-rent for a longer time rather than free rent for a shorter period. Free rent can also be spread out over the term, which is often more palatable to owners.

Creating a Proposal to Lease - Negotiation tip: in most retail transactions, which commonly use net rents, the onus is on the tenant to make their own improvements or install fixtures. Therefore, it is customary to start the lease but delay the start of the rent for a time to allow the tenant to do this work.

Creating a Proposal to Lease - If the property is a multi-tenant property you will need to define the owner's obligations related to the common areas.

Creating a Proposal to Lease - Tenants are required to pay for any increases in the cost of operating the building after the first year of the lease. The first year of the lease is called the base year, because it is the year to which all future operating expense budgets are compared. Base years are most often calendar years, especially in multi-tenant properties.

Creating a Proposal to Lease - Owners expect the first month's rent will be paid upon lease execution even if there are several months before the commencement date.

Creating a Proposal to Lease - Negotiation tip: if you are leasing more space than you need initially, you may be able to structure the rent so it starts lower, then graduates. Or you might ask that the first year's rent be calculated only on the portion of the space you will be using initially.

Creating a Proposal to Lease - Negotiation tip: If you are providing your own space planner, it is sometimes possible to negotiate for payment of your architect by the owner. Typically this occurs when space-planning services are already being offered by the owner to attract tenants. It is always worth a try.

Creating a Proposal to Lease - Be aware that if you are offered a reimbursement for tenant improvements provided by you, it could cause a taxable event. Consult a tax advisor before agreeing to any cash allowance that comes as a reimbursement.

Creating a Proposal to Lease - If you have been provided with a floor plan of existing conditions, mark it up and include it with your proposal.

Creating a Proposal to Lease - If you use hazardous materials, it is important to discuss that up front to avoid wasting everyone's time. In industrial space you will want assurances the space is clean before occupancy: Be sure to ask the owner for a complete written disclosure about prior uses of the premises.

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