In the current climate, nothing businesses do should be for the long-term even when it comes to renting office space. At least, that is what the prevailing wisdom tells us. If we are in an economic downturn for which we have little to no control over, should anyone lease commercial real estate? Should businesses continue finding new offices during a lockdown? Well, there is talk coming out from the White House, about a phased reopening of businesses. A mix of working at home, along with commercial offices reopening while in-keeping with social distancing rules. Businesses want to be the first to reopen, they want to be at the tip of the spear. Considering the economic bull run that will follow. To protect you and your business, using a tenant representative during the renting office space negotiations is recommended.
Is it costly?
First, a renegotiation rent expert is worth the money. In most cases, tenant representative fees for commercial real estate is covered by the landlord while finding new offices. The tenant doesn’t get off scot-free. You have to pay some fees here and there but to a large extent. A good tenant rep will get you such a good deal that you won’t take a financial hit before you enter the office space. Tenant reps are great for office lease negotiations. They're also good at getting deals on offices from commercial real estate companies like Brookfield, Boston Properties, and JBG Smith.
It's not always about money
One other reason having a tenant rep while engaging in office lease negotiations are that they'll be educated on latest office trends. Are you better off getting $3 off the square footage price of commercial real estate? Even though the office doesn't fit your needs or employee number. The tenant rep will do his or her research into the landlord and take an office tour themselves. They will know which landlord is reputable and which office spaces are as good as they appear to be. During any renegotiation rent, they will consider for you the costs you don’t see right away, such as the occupancy costs. When you're finding new offices, a small, cheap and cheerful office might look all right. But what if it has electrical damage or piping that needs repairing? Common area maintenance fees might also be an issue.
Know their place
Covid-19 has made sure that we never look at renting office spaces the same again. It's in the back of people’s mind, how crowded offices are and the affects high human density areas have on physical and mental health. A tenant rep is aware of other options besides the office space you’re interested in. They will take notes during each office tour they go on. He or she will bring this up with the landlord and put their feet to the fire. Their skills can be used to have renegotiation rent price meetings. Commercial office portfolio giants like Brookfield, JBG Smith and Boston Properties are notable alternatives. JBG smith is pumping $2 billion into it's real estate stimulus scheme. Brookfield is offering $5 billion of its retailers and Boston Properties is pumping $1.25 billion to save its tenants. A tenant rep will understand the current commercial office portfolio climate and give you options.
During office lease negotiations, ask yourself do you need to be in a typical commercial office building? High-rise real estate isn’t the only option for those wanting a professional workspace. Tenant reps will seek out new office buildings and book you an office tour to help you decide. Many shopping malls, retail stores and warehouses are being converted into office space. Their location and recent overhaul may mean you can take advantage of the cheaper prices listed in their commercial office portfolio.