News and Updates

NEWS AND UPDATES FOR COMMERCIAL TENANTS IN THE MARKET

Wine, Water and Real Estate Brokers

How much do labels affect our perception of quality? Apparently very much, as shown in study after study. Wine In 2001 a researcher at the University of Bordeaux, the very epicenter of the fine wine world, recruited 54 oenology undergraduates (those are students studying to get a Bachelor of Science in winemaking) to participate in ...
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When Should You Start Thinking About Your Lease?

Most people only start to think about their real estate situation when they are coming up to the expiration of their lease term. Since many leases are seven years or more in length, people don’t think about their real estate very much. When they finally do, they are sometimes reacting to an emergency situation rather ...
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Potato Chips and Leasing

We’ve all done it. Opened up a bag of potato chips to find a lot of empty air where the afternoon snack should be. In the food industry there’s a name for all that air. It’s called “Slack Fill.” Food producers will tell you that there is a legitimate reason for Slack Fill. They say ...
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Why Large Companies Don’t Maximize Negotiation Leverage

It’s startling to read a large tenant’s lease and discover how less favorable it is compared to what smaller tenants with less leverage achieved at the same time in the market. Sometimes, the rent and other cost exposures are higher; other times, the work letter was poorly negotiated or the company is overexposed to liability ...
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How to Stay Within Your Tenant Improvement Budget

“A budget tells us what we can’t afford but it doesn’t keep us from buying it.” – William Feather Building out new office space can be somewhat akin to buying a new car. We have all walked into a car dealership with a firm budget in mind but then we make the mistake of test driving ...
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Who Should Fit Out the Tenant’s Space?

Tenants spend a lot of time trying to find the right location for their business. They visit numerous buildings; test fit the spaces for efficiency and suitability and go back and forth on negotiations with the landlord over the economic terms. However, the tenant often fails to realize that after the lease is signed, a lot ...
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When is a Market Comp Not a Comp?

A tenant came to us recently asking for help. They were involved in a transaction with another broker and were concerned about the objectivity of the advice they were getting. The tenant was looking for about 50,000sf of space and was considering a building that was a bit off the beaten track but in an ...
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Why Landlords Want to Pay Commissions

Every now and then, someone who hasn’t worked with us previously will ask: But, if my landlord doesn’t have to pay a broker, won’t he give me a better deal? Let’s just make believe for a moment that landlords don’t pay other entities (both in-house and third party) more when a tenant representative is not ...
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