Landmark Advisory Services was founded in 2013 in Montreal, Quebec, Canada. However, Landmark’s heritage of representing commercial tenants goes back more than 30 years. We were rolled out of a property management firm that was representing private and institutional landlords while also representing tenants through an advisory division. As each business grew, they needed to be separated and so we were created in 2013 and subsequently the landlord management firm was sold to Colliers International.
Tag: lease negotiations
The same happens in commercial real estate. When one tenants moves out, another will be moving in. If the current tenant cannot vacate in time, that exposes the successor tenant who won’t be able to move in on time. One holdover begets another holdover. Luckily for the real estate world, these broken chains are usually few and far between and the impact can be mitigated through overtime workers, temporary space or even paying some punitive holdover rent. Now, however, we’re in completely unchartered waters.
In order to compare a deal to the market, one must have access to quality data. Maintaining a database of relevant transaction comps is critical. Comps need to include details on all variables which drive landlord returns; this includes average net rental rates over the term of the lease, as well as landlord concessions such as tenant improvement allowances, free rent, and commissions.
Every tenant is in a different situation, so there are no hard and fast rules. However, your representation team (both your broker and your real estate lawyer) needs to be strategic in language negotiated to clearly define the landlord right, various mechanics of exercising the right, and the limitations of the right to protect your business.
Landlords need relocation rights to maximize revenues for the building or project. This scenario occurs frequently in a newly completed building or one that is under construction and pre-leasing space. Having the ability to move a smaller tenant to another area on the same floor or to another floor in order to accommodate a larger tenant is ideal for landlords in securing tenants that may need a full floor or prefer a certain area of the building.
“One of our oldest clients went on and on about how responsive we were in the beginning of our first transaction with them. That hustle made a big impression on the client, and in turn, that client’s acknowledgment made a big impression on us about what customer service should look like. In the beginning, hustle was the best thing we had to offer, and now that we are seasoned pros, it still matters just as much as it did on day one.”
Companies move like an organism on a daily basis: grow, shrink, move, share, and so on. But how do you facilitate this in an office building that usually requires a long-term lease obligation? Think about changes within your organization, market conditions and the way in which your employees will perform their work in the future.