1. Include Your Entire Team on the Tour. It is advisable to have all of your project team members present (and, if possible all decision makers). Without the feedback of all team members, you may become interested in spaces that ultimately will not work out.

2. Be Prepared. Prepare your questions about the space(s) and research everything you can before physically touring the building. You should be clear on exactly which issues and factors in a space are priorities and which are negotiable.

3. Be Neutral. Enthusiasm and excitement for the space can ruin any advantage you may have during negotiations. Asking questions regarding the space and its suitability for the company’s requirements are good but save the discussion about whether or not it is an ideal location until after you have left the building. You should however make it clear to the landlord or leasing agent that you are looking at a number of buildings and locations. Just don’t tell them which ones!

4. Don’t rush the process. Take time at each individual space and take notes and pictures. It can be difficult to distinguish properties after the fact without good notes.

5. Ask about the tenant mix. Review the building directory to determine if there are competitors that you do not want in your building or other undesirable tenants. Also make note of tenants that could be complimentary.

6. Visit the bathrooms and ride the elevators.

7. Check parking. Does there appear to be enough? Is ingress and egress a problem? You may want to return during rush hour.

8. Evaluate Security. Ask about card key entry and whether or not there is security on site. Are there security cameras?

9. Ask about Signage. Is exterior signage available? Find out what is included for free and what if any; expense will be incurred for exterior signage.

10. Heating, Ventilation and Air Conditioning. Find out the building standard hours for HVAC. If you will need HVAC in addition to those hours, ask about charges for after-hours services.

11. Covid 19 Related Precautions. Ask what precautions the landlord has taken to minimize the risks of Covid 19.  For example, has the landlord upgraded air flow in the building and installed ultraviolet filters?  Are there touchless options for moving through the building?  Are there enhanced cleaning protocols?

At Mobiliti CRE we focus 100% on representing tenants with relocations, expansions, contractions, and subleases throughout Tampa Bay and the entire West Coast of Florida.  We also assist businesses that are looking to purchase office, medical office, industrial, and retail space.  Reach out to us for assistance with all of your commercial real estate needs at (813)-300-2227 or email us at pam@mobiliticre.com

More Tenant Related Information

• Tampa Bay Commercial Office Market Snapshot
• How to Maximize Tenant Renewals
• Tips for Renegotiating Rent Due to COVID-19
• Having Your Own Buyer’s Representative Can Save Money
• Cost Saving Strategies to Reduce Rental Expenses
• Determining How Much Office Space You Need

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The time required for a successful move depends on the size of the space required and the complexity of the new space. For an office user with 10,000 or more square feet, it is best to begin the process within 18 months prior to the expiration of the current lease. It is critical to begin the process early enough to maintain leverage in lease negotiations and to be exposed to as many alternatives as possible.  Last week we discussed the importance of reviewing your existing lease prior to doing anything else.  Once you have done that it’s time to assemble the team, the timeline and the budget.

1. Choose a Team Leader and Make them Aware of Management’s Goals. Being the point person on an internal office move can require a substantial time commitment. The team leader should be made aware of this and may need to delegate some of their normal duties to someone else during the search process. In addition, it is imperative that the team leader receives clearly defined goals and instructions from all decision-makers involved. Often the best choice for a team leader is the CFO, general counsel, head of facilities or an office manager.
2. Assemble an External Team. The first step for the team leader should be to interview and hire a real estate broker. The broker can then assist in hiring other professionals such as architects, engineers, and construction managers.
3. Clearly Define the Role and Responsibility of Each Member of the Team. The roles of each team member should be clearly defined, and they should be held accountable.
4. Create a Project Schedule. The team leader, together with assistance from the broker, should create and maintain a project schedule that keeps everyone on track. The project schedule should outline each team member’s duties and should include key deadlines for completion and budgets. Staying on schedule will prevent you from moving too late and having to pay holdover rent or from moving too early and having to pay rent on two locations.
5. Establish a Preliminary Project Budget. The budget should address costs for construction, if any, professional fees, furniture, equipment, moving costs and any other costs not covered by landlord concessions.

Next week we will discuss the process used to determine how much space is needed.

At Mobiliti CRE we focus 100% on representing tenants with office relocations, expansions, contractions, and subleases.  We also assist businesses who are looking to purchase office, medical office, industrial, and retail space.  Reach out to us for assistance at 813-300-2227 or via email at pam@mobiliticre.com Here at Mobiliti CRE we assist both small and large investors as well as owner-occupiers with commercial real estate purchases.  

More Tenant Related Information

• Tampa Bay Commercial Office Market Snapshot
• How to Maximize Tenant Renewals
• Tips for Renegotiating Rent Due to COVID-19
• 5 Things to Ignore on a Virtual Tour
• Cost Saving Strategies to Reduce Rental Expenses

The post Thinking About an Office Move? Do These 5 Things First appeared first on Mobiliti CRE.

There are times the landlord’s agent represents both the landlord and the tenant.  This is called dual agency. Although the agent already has sworn his or her loyalty in writing to represent the landlord as his principal with a fiduciary responsibility to act in the best interests of the landlord, the dual agent then pledges to represent the tenant prospect as agent.  When the landlord’s agent acts as a dual agent, there is always a potential conflict of interest. It is never beneficial to a tenant when an agent represents both sides of the transaction.

A commercial real estate tenant is better served by hiring a tenant representative to represent the tenant exclusively. The exclusive tenant representative will perform a site search of all available properties, filter those buildings meeting the tenant requirements, arrange tours of properties the tenant would like to visit, and negotiate letters of intent to lease space on behalf of the tenant. Finally, the tenant representative assists the tenant in negotiating business points for the lease agreement. As exclusive agent for the tenant, tenant reps provide objective, conflict-free advice.

Although landlord agents work to get the best deal they can for the landlord, tenant reps owe their loyalty and fiduciary responsibility to the tenant. The tenant gets a much better chance of a fair deal when the tenant rep is working on his or her behalf.

In the past landlords had an overwhelming advantage in terms of commercial real estate market information, but with the advent of tenant reps, tenants now have a mechanism to fill the knowledge gap. Tenant reps provide a source of current market data to help level the playing field for the tenant.

Rental rates are currently rising as the economy improves and vacancies decrease.  We expect that rates will continue to increase over the next several years as the economy continues to improve.  There are still opportunities to be had and we are encouraging our clients to review their leases now in order to determine if it makes sense to extend the term of their lease in order to lock in a rate moving forward.  Please feel free to contact us at any time for a free lease analysis. Retrieved from “http://www.articlesbase.com/real-estate-articles/no-cost-for-tenant-rep-2263659.html“

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Check for Restoration Provisions:  Your existing commercial lease will spell out the obligations that relate to the maintenance and/or demolition of your current space.  If the landlord is hoping to reuse parts of your existing space, the lease will contain language designed to minimize the damage caused during your move.  If the landlord is intending to demo the space, the lease might contain language requiring the tenant to pay for the removal of certain items.

Check for Holdover Provisions:  Holdover provisions require the tenant to pay damages to the landlord if the tenant remains in place after the lease term expires.  In general, these damages range from one and one half to double the rent being paid at the expiration of the term.

Review Your Lease Extension Options:  Your lease may contain an option to extend.  If so the terms of the extension are often at “fair market value”.  Having an extension option is important because it can prevent the landlord from leasing your space out from under you if you wish to remain in the space.  You should review your lease well in advance of expiration because options to extend usually require the tenant to give a significant amount of advance notice to the landlord prior to lease expiration.

Review Your Landlord’s Right to Show Your Space:  Your lease may specify that as the expiration approaches, the landlord has the right to show the space to new prospects.  Typically this process starts six to twelve months’ prior to expiration.  Look for provisions that require the landlord to give you notice prior to the time your space will be shown in order to minimize disruption to your business.

If you have any questions regarding leasing commercial real estate in Tampa or St Petersburg, Florida please do not hesitate to reach out to us.  Mobiliti CRE is a leading provider of commercial real estate services specializing 100% in tenant representation.  For assistance contact Pam at (813) 300-3337 or email pam@mobiliticre.com

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Establish Client Goals – Before a plan can be formulated, it is imperative to understand all of the buyer/investor objectives. An owner-occupier will need to consider physical space needs, brand/image, employees, clients, competitors, location and budget. An investor will need to consider which asset classes are the most attractive at the time, cap rates, internal rates of return, geography, tenant mix and credit worthiness, location, local economy and facility condition.

Market Review and Evaluation – Once the organization’s goals and objectives have been defined, we will develop a list of the most suitable options and the advantages and limitations of each. Pertinent industry trends including vacancy rates, cap rates, new construction, supply/demand, recent sales and other market information will be compiled and analysed. We will tour the market and the preferred options will be “short listed.”

Comparative and Financial Analysis – My team will perform a detailed financial analysis of each property. We calculate the present value of each option and if appropriate, we will prepare a lease versus own comparison. In addition, we will evaluate each location based on subjective requirements such as location and company image. A detailed summary will be developed, highlighting key economic and non-economic concerns. Specific client concerns are also incorporated.

Market Information Regarding Comparables – Real estate consultants are only as good as the information they provide and successful transactions are guided by accurate market information. We will provide you with detailed market information regarding comparable sales in the market. This information is obtained through both technology as well as years of experience in the market. The information provided to you will assist you in making the most informed decision and enable us to negotiate the best possible terms.

Letter of Intent – After several rounds of negotiations among competing sites, the preferred building and/or property is selected and letter of intent terms are negotiated. During this phase, Mobiliti CRE will prepare a letter of intent outlining key business and legal issues thereby laying the groundwork for a smooth negotiation of the purchase.

Document Review – Mobiliti CRE will review the purchase agreement to ensure that all of the terms outlined in the letter of intent are reflected in the purchase agreement. In addition we will identify any problematic provisions in the agreement and generally assist your attorney in finalizing the transaction.

If you have any questions regarding leasing commercial real estate in Tampa or St Petersburg, Florida please do not hesitate to reach out to us. Mobiliti CRE is a leading provider of commercial real estate services specializing 100% in tenant representation. For assistance contact Pam at (813) 300-3337 or email pam@mobiliticre.com

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