We believe that understanding your business is the most critical factor in a successful search. We view it as our job to provide you with comprehensive insights into the local market. Only then, can we begin searching for property that enables you to meet your business goals (e.g., financial, operational, timing).
Our tenant representation services cover multiple property sectors (retail, industrial, office) and include:
- Expansion into new space
- Renewal of existing space
- Sale-leaseback of existing facility
- Market expansion consulting (multiple locations)
Strong tenant representation is crucial
In most cases, a landlord has a built-in advantage when a tenant’s lease is expiring and it is time to renew.
- Statistics show that a typical tenant will renew their lease nearly three-quarters of the time. Those tenants who choose to relocate often have a specific reason for doing so (e.g., no ability to expand in current building).
- Landlords are professionals when it comes to lease negotiations since they negotiate several leases each month; a tenant might only do so once every three to ten years.
- There is a cost and disruption associated with moving a business. Many tenants simply do not want to deal with the perceived hassle.
In any negotiation, it is important to understand the other side’s (landlord’s) perspective so that a tenant can approach its next move in a strategic manner. This includes evaluating competitive space options and using the findings as part of a negotiation with a landlord. This applies even if the goal is to renew in your existing space and not relocate. A landlord knows it is always more cost-and operationally-effective to retain an existing tenant in good-standing than to let their former space remain vacant while searching for a replacement tenant who likely wants a larger construction allowance for renovation.
Tenant Representation Process
At 1912 Ventures, our tenant representation process can be broadly divided into these phases.
- Client Analysis: We approach a real estate requirement by asking a number of questions at the onset. Our goal is to understand your corporate strategy and offer recommendations on how future real estate decisions can directly benefit your corporate strategy.
- Market Analysis: This phase educates our clients on local market conditions and opportunities that include spaces available via a direct lease or sublease, projected pricing and concession packages for these competitive properties, and market factors that should be considered when pursuing the next project phase.
- Competitive Property Options: During this phase, we compile a list of target properties/spaces based on our understanding of your real estate needs. We then manage all interaction with the representatives of these properties so that you can focus on your core business.
- Lease Negotiation & Execution: During this phase, we will manage all negotiations with the landlord while working in concert with our client and their legal counsel through execution of the final lease agreement.
- Construction: As needed by clients, our role in this phase entails coordinating with third-party these vendors while working to ensure the project remains on time and on budget through buildout (construction) and occupancy. These vendors often include general contractors, architects, engineers, and attorneys.