This post originally appeared on tBL member Michael Kushner’s blog Omni Realty Group and is republished with permission. Find out how to syndicate your content with theBrokerList.
A critically important part of any business is where they plan to work. For many, this means leasing commercial real estate such as office, retail, or industrial space. On the surface, finding and leasing space may sound simple. You can search for buildings for rent online, or drive around your preferred location looking for signs of available space. Unfortunately, it often isn’t that simple – at least if you want to be sure you found the right space at the best possible price. Many properties that are available might not put a sign out or post something online. This is why working with a Tenant Representative or Buyer’s Agent is so important for streamlining your search process and helping you make a smart decision. These are professionals who are skilled in finding and comparing commercial real estate properties and who act in the best interest of the tenant/buyer and not the landlord.
If you are a business owner who is in search of commercial real estate, you’ll be interested to learn just how Tenant Representatives serve their clients and help them compare available space as close to apples-to-apples as possible. Keep reading to learn the methods Tenant Representatives use to find, compare, and negotiate commercial real estate space for business owners, like you.
Keeping a Pulse on the Market
At Omni Realty Group, we keep a pulse on the local market by comparing data and reports prepared by CoStar. CoStar provides a combination of reliable tools, resources, and deep understanding on over 5.9 million commercial real estate properties across every market. On a monthly basis, we are able to compare this data and identify trends that can help determine the fair pricing of commercial real estate in the local market. This works to the advantage of the tenants we represent in identifying key properties and negotiating fair leasing prices and terms.
Comparative Lease Analysis Software
In addition to market reports, technology also equips us with comparative lease analysis software where any number of properties can be quickly and accurately analyzed. This provides a strong foundation when conducting property searches for clients. We can narrow down the properties to only those that fit the specifications of the ideal property – location, size, price range, class, and much more. Before a tenant ever steps foot inside a property, they are equipped with the knowledge of whether the space fits their needs or not.
Comparing What’s Included in the Rent
What’s included in the cost of rent varies from property to property and is often dictated by the landlord. Understanding what’s included helps to give tenants a better comparison of the cost per square foot and one how property stacks up against another. Price alone can be deceiving because the lowest priced property may actually cost more per month once you add in things like utilities, janitorial services, and parking. We identify and list out everything that the cost of rent includes for a property so tenants can compare and arrive at an informed decision on the actual cost.
And Comparing What’s Not Included
And much like comparing what’s included in the cost of rent, it’s equally important to consider what’s not included. These are hidden costs that can come with a budget-breaking price tag if not identified early in the property search process. If a space is already at the maximum of what you wish to pay for rent, having to also pay for electricity or water on top of this monthly rent would push it right out of your budget and could put a strain on your business. It’s a Tenant Representative’s job to uncover all costs, especially those not included in the price per square foot, and make these clear to potential tenants.
Valuing Flexibility and Convenience
One final thing to compare when looking at various commercial rental properties is to place a value on flexible and convenient lease terms. For a lower rental price, some landlords may want you to lock into a long-term contract. While the lower price is great, you need to assess whether it’s smart for your business to commit to something that may need to change over time. If your business grows, or you need a different space you may not have the flexibility to terminate your lease, or at least not without a cost. This is where a Tenant Representative can help step in and negotiate flexible and convenient lease terms on your behalf. Through experience, Tenant Representatives understand what’s attractive to a landlord and where they may be willing to offer you something favorable if you can offer them something favorable as well. When all parties come to an agreement and are satisfied, this sets the tenant-landlord relationship up for success from the start.
If you or someone you know is in the market for commercial real estate space to run your business, keep in mind that you should consider a lot more than just the cost of rent. There can be hidden costs and other disadvantages to the terms of the lease that can add up. What’s most important is to begin by talking to a Tenant Representative who can lead you through the process, narrow down the best properties, and negotiate in your favor. With a Tenant Representative or Buyer’s Agent on your side, you will be able to compare commercial properties apples-to-apples and find the one the best meets your needs.
If you need the help of a Tenant Representative, contact Omni Realty Group today! We are 100% exclusive to representing tenants and buyers of commercial real estate and have experience representing businesses of all sizes in Central Pennsylvania.
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