ABOUT TENANT & BUYER REPRESENTATION
As a “Tenant Rep”, Integrity Commercial Real Estate specializes in the representation of tenants and buyers. Our mission is to help secure a physical location and environment that best suits our clients’ needs under the most favorable terms. Our goal is to develop long-term relationships with our clients through continued support long after the lease is signed.
An experienced tenant & buyer representative will empower a client/tenant with valuable information such as current market prices, terms and details on facilities that meet your needs. The benefits of representation include:
Valuable Market Data
We maintain a rich database of commercial properties as well as information on new developments. Our services include a comprehensive survey of locations that match your specific criteria.
No Conflict of Interest
We will represent the interests of the tenant/buyer, not the landlord. That means each transaction is viewed from your point as a tenant/buyer, using the entire scope of market data to optimize property selection and negotiations.
We do the leg work which saves valuable time and expense. From previewing potential locations to sourcing comparative rates, we save our client the time required to deal with multiple property owners, landlords/sellers and real estate brokers attempting to “sell” a specific property.
We are committed to securing well-designed and competitively priced facilities that will enhance our client’s profitability and provide a good capital investment whether a lease or a purchase. Our involvement and market knowledge create a competitive negotiating environment.
No Cost to You
As standard protocol, all commissions are paid by the landlord at the close of the transaction.
WHY NOT SEARCH FOR COMMERCIAL PROPERTY MYSELF?
For the same reasons you use an accountant, lawyer or advertising agency each specializes in their field. Each professional can accomplish your requirements in less time providing higher quality results. In commercial real estate this service is provided free of charge when represented by a Tenant or Buyers Broker. An owner builds into the rent or sales price a commission; if you negotiate directly with the owners agent the owner’s agent receives the total commission. It is the owner’s agent’s job to receive the highest rent or sales price possible for the owner. If a Tenant or Buyers Broker represents you the owner’s agent splits commission with your representative the Tenant or Buyers Broker. In fact by trying to negotiate yourself, you are actually paying the owners agent to negotiate against you. Tenant or Buyers Brokers are experts in negotiating the best possible lease terms, including rent, lease term, free rent, construction allowances, base landlord work, securities, taxes, operating and cost of living increases in leases and the best possible sales price, terms, contingencies and feasibility terms in the case of a purchase. These and many other items are critical to your contract negotiation. A Tenant or Buyers Brokers experience, knowledge and advice will not only help you find the property that suits your needs, but also save you time and money.
TENANT AND BUYER REPRESENTATION STEPS OF SERVICE
I. Define Requirements
After the tenant or buyer hires Integrity Commercial Real Estate by executing the North Texas Commercial Association of Realtors (NTCAR) Professional Services Agreement – Buyer and Tenant Representation, we starts the process of representing the client by gathering information about the client’s business goals to fully identify the specifics of the commercial real estate need and requirement.
II. Market Survey /Analysis
Based upon the client’s objectives and desires, we make an initial selection of properties using various commercial real estate listing services or other resources developed by Integrity Commercial Realty in their 34+ year career in commercial real estate. Unlike residential real estate where there is one listing service of all available properties, commercial real estate has several listing services that may or may not list available properties. We gather all pertinent economic information including sales price or quoted rent, operating expenses or “triple nets”, handling of utilities, cleaning, repairs and maintenance, allowances for improvements, incentives for each potential property that fits the client’s needs and requirement and then present it in a market survey format. In addition, zoning, future use plans from the subject city, demographics, traffic counts, future roadway plans and enhancements can be assembled where available.
III. Site Selection
Based on the initial market survey, the client selects properties that they are interested in viewing. The client will pick properties, we will set up property tours and then they will physically look at the proposed space(s) to see if they are a fit for the clients business.
IV. Obtaining Proposals
Following the tour, we request proposals from the various owners and Landlord-Seller Brokers. The requests specify the client’s objectives including, but not limited to: delivery date, expansion capabilities, renewal options, tenant improvement allowances and any rental concessions such as free rent where possible. These proposals will establish a starting point for negotiations
V. Comparative Analysis
With the proposals on hand, we help the client evaluate the non-economic and economic factors of each property in order to determine which property makes the cut to the next step. Comparison of each proposal to the other properties and the market is completed in this step.
VI.Creating Counter offers
After review of the proposals with the client, we draft counter offers to each proposal with business points which may include expense stop caps, favorable assignment language, extended Tenant Improvement periods to name a few. Economic deal points are aggressively negotiated based on market conditions and offers made by the competing properties. This process can repeat itself several times until mutually agreeable terms are reached which at that point results in the lease being drafted.
VII. Lease Review – Business Points
The landlord will draft the lease form and deliver it to us and we will deliver to the client. We will review the business points of the lease form to ensure they match up to the final agreed proposal. We will also make recommendations on business points contained in the lease such as holdover, notice periods and other comments based on the lease form presented by the landlord. Our lease comments relate to business points only and we recommend the client hire a real estate attorney for review of the legal points in the lease.
VIII. Legal Review of Lease Agreement
Legal review of the lease form is suggested by a real estate attorney of the client’s choice. Even with corporate counsel involved, we remain active throughout lease and/or purchase negotiations to facilitate the process. Some of the items subject to legal review include but not limited to the following: indemnification, insurance, environmental, non-disturbance agreement, and special stipulations.
IX. Construction Process
In most cases, the client can use their own contractor and architect. If needed we can recommend contractors and architects through our comprehensive real estate relationship network. We will work with the client and Contractor/Architect as a liaison to facilitate the construction process. Typically the construction process is 90 – 120 days depending on the clients use.
X. Follow Up
After the client has moved in and occupies the space, we still maintain contact to help the client with any future questions or issues relating to their lease– renewal options, expansion needs, etc. We view the opportunity of serving the client in a real estate transaction as an ongoing service.
10 IMPORTANT THINGS TO ASK ABOUT YOUR NEXT LEASE TRANSACTION
- Do you want to work with a company to whom you are only the next deal rather than one who is looking to be your company’s long term real estate partner?
- Do you want to sit in your office for the next 3-5 years wondering if you really got the best facility at the best possible price in the location you wanted to be in?
- Do you want 5-10 different brokers sending you partial information on properties they think are right for your company versus one point-of-contact who truly knows your needs & sends you detailed, accurate information on pertinent real estate?
- Do you enjoy or think it is a good use of your valuable time to drive every street in the market calling off signs, trying to get brokers/landlords to call you back, and then spending more time negotiating a proposal and subsequent lease document?
- Do you have a professional review/audit your year-end reconciliations (Taxes, Insurance & CAM statements) each year to make sure they are accurate & in-keeping with market?
- Do you have a proprietary database of every available property in the DFW Metroplex (officially on the market or not)? Additionally, do you have a database of transactions done in your area?
- Did you or your broker request a HVAC report from your landlord before you signed your lease? Furthermore, did your broker suggest you have the HVAC system inspected by a professional to make sure you were protected?
- Does your current lease provide for landlord replacement if you’re the copper is stolen from your HVAC unit or do you have to pay to replace it?
- Does your current lease document contain a Renewal Option so that your landlord cannot have the ultimate decision whether you stay or leave at the end of your term?
- Does your current lease document contain a Right of First Refusal on Adjacent Space which would allow your company to be flexible in its expansion needs?
If you answered NO to any of the 10 questions above & you want the very best representation for your company, please call or email me now. You may not have a current need for real estate services, however, it is never too early to learn about the market & get a feel for future markets. Currently real estate transactions take an average of 8 MONTHS to complete, so if want a new location in a year or less, now is the time to call. Integrity Commercial Real Estate can advise you on locations available to lease, buy or on sites to construct a new facility, or a combination of any or all.
WHAT OPTIONS ARE PROVIDED IN YOUR LEASE? YOUR BUSINESS IS EVOLVING AND SO ARE YOUR SPACE NEEDS.
Most companies prepare annual budgets, sales targets and performance reviews but very few of them conduct an annual review of their commercial office lease. Many simply file the lease away and don’t think about it until they are contacted by their landlord. This can leave the tenant with very little negotiating room and/or too little time to find substitute space.
Ideally, every company should review its lease annually to check for the following:
- Expiration Date
- Do you have a right to renew? If so, how far in advance must you give notice?
- Do you have enough space to meet your needs now and in the future?
- If you need more space do you have a right of first refusal or first offer and what are the notice requirements?
- If you need to downsize, do you have a right to sublet or assign?
- What rate is your landlord quoting for comparable space in your building?
Failure to understand all of the important dates, deadlines, terms, and conditions can result in a serious disruption to your business.