Leasing 101

/Leasing 101

The Number 1 Reason Tenants Loose in Landlord Negotiations

2017-10-14T13:49:50+00:00

For today's topic, I want to talk about the number one reasons that tenants get beat on landlord negotiations. The number one reason that tenants get beat is quite simple. It's fear of loss. When a landlord understands that your business is dependent on that location or if you have, let's say you're a print shop and you have $100,000 of equipment in that center. They understand that they have leverage over you. They understand the pains of moving. They know that 75% of tenants typically renew their lease. That puts them in a naturally advantageous position. For a tenant, you [...]

The Number 1 Reason Tenants Loose in Landlord Negotiations2017-10-14T13:49:50+00:00

How to Project Total Cost of an Expansion or New Space (Office, Industrial, Retail)

2016-09-06T13:27:07+00:00

Are you trying to decide whether or not you should lease space?  Whether this is your first or 50th location, this guide will give you insight on how to work with your WorkSpace Agent to get the answers you need to move forward (or not move forward) with confidence. Considering Real Estate cost is second only to the cost of HR for a company, there are a multitude of questions that should be taken into consideration when factoring in a new space: Am I certain how much space I will need? Why do I need space? When do I need space? [...]

How to Project Total Cost of an Expansion or New Space (Office, Industrial, Retail)2016-09-06T13:27:07+00:00

Don’t Let Real Estate Costs Sink Your Business

2017-10-14T13:49:53+00:00

You (and everyone else) want the absolute best space they can for the lowest price possible.  Attractive curb appeal, great visibility, signage opportunities, at a low price.  As the captain of your ship, make sure that you are looking at what lies beneath the surface while navigating the economic waters.  A simple lease transaction could have unexpected consequences that could devastate your business financially.   Cost of staying The average rent increase for a commercial lease is between 3%-8%. Depending on the amount of rent you are currently paying, this could be a lot of month and it could take your [...]

Don’t Let Real Estate Costs Sink Your Business2017-10-14T13:49:53+00:00

5 Big Real Estate Blunders Business Owners Make

2017-10-14T13:49:53+00:00

Getting the first property for a business, or relocating to a different one, can be an extremely costly venture. The one thing that will bring down the cost in regards to the purchase or lease negotiation is the use of an experienced broker to ensure the business owner is getting everything they need at the best price. Here are five big real estate blunders that business owners make. Starting the Process Too Late More than a few business owners I have met are highly reactive when it comes to their lease renewal, having gotten notice of a rate increase, furious because [...]

5 Big Real Estate Blunders Business Owners Make2017-10-14T13:49:53+00:00

Capital Improvements

2015-05-12T01:32:59+00:00

What are Capital Improvements? Capital improvement is work done to a commercial property (office, retail, or industrial) that is undertaken to improve or extend the normal economic life of an existing structure.  Deductions are not done for capital repairs, the cost is added to the cost of the property. Why does this matter to tenants? The cost of a capital improvement cannot be deducted from income from the building.  It must be added to the cost of the property. In other words, the landlord cannot treat these type of repairs as an expense. How does this affect my cost in a [...]

Capital Improvements2015-05-12T01:32:59+00:00

Understanding Commercial Building Classifications

2015-05-12T01:33:40+00:00

Class A Class A buildings are the most prestigious of  buildings--competing for premier office users with rents above average for the area. Class A buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence. Class B Class B buildings compete for a wide range of users with rents in the average range for the area.  Finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price. Class C Class C Buildings competing for tenants requiring functional space at rents [...]

Understanding Commercial Building Classifications2015-05-12T01:33:40+00:00

Common Area Defined

2017-10-14T13:49:53+00:00

Common Area defined For lease purposes, common area is defined as the areas of a building that are available for the nonexclusive use of all its tenants, such as lobbies, corridors, and parking lots. Common Area Maintenance (CAM) Common Area Maintenance (CAM) charges are charges that are paid by the tenant for the upkeep of areas designated for use and benefit for all tenants.  CAM charges are common in commercial transactions and may include lobby areas, centralized bathrooms, parking lots and more.  Capital Improvements are commonly included within CAM charges when a tenant receives a statement from the landlord. Why does this matter [...]

Common Area Defined2017-10-14T13:49:53+00:00

What is Rentable Versus Usable SF

2017-10-14T13:49:53+00:00

Loss Factor Loss factor is the square footage in an office or industrial building that is not usable by the tenant.  This includes common area, hallways, lobby areas, etc.  The way to determine the amount of rentable SF in an office building is by multiplying the space you want to lease by 1+ loss factor to go from usable SF to rentable SF.  An example is if you owned a (very small) 5,000 SF small office building and 500 SF was devoted to common area you have a 10% loss factor.   If a tenant wanted to lease 1000 SF in this [...]

What is Rentable Versus Usable SF2017-10-14T13:49:53+00:00

How Tenant Rep Brokers Level the Playing Field

2017-10-14T13:49:53+00:00

Tenant Representation Brokers Know the Cards and How They are Played We are full time commercial real estate experts that have landlord and tenant rep experience.  We have been on both sides of the table and know how to achieve goals for our clients with a track record to prove it!  We fully understand the business points of a lease and know what concessions are acceptable in the market 5 years ago, now, and in the future because do deals throughout the State of Texas. We are big believers in a tenant representation process and strong negotiation strategy.  We take our [...]

How Tenant Rep Brokers Level the Playing Field2017-10-14T13:49:53+00:00