3 Basics to Minimizing the Cost of your next Office and Warehouse Space
Every company large or small wants to identify the highest quality office space at the lowest cost. In order to achieve this goal, a company must understand what the major drivers of cost. Your chances of securing the best price on space are increased significantly by utilizing the expertise of an exclusive Tenant Representative who strictly looks out for the interests of Tenants vs Landlord Listing Agents, who post "FOR LEASE" signs in front of buildings that work on behalf of Property Owners.
The Three (3) most basic factors that influence the cost of office space are Location, Lease Structure, and the Space Configuration. It is imperative to understand these three components to obtain the best deal on space. Tenants that find themselves in too much space are stuck overpaying or underutilizing space because they were not property advised of these factors. Listing Brokerage firms, who represent Property Owners are motivated to only look out for the Landlords interests whereas, Exclusive Tenant Representatives are incentivized to exclusively look out for the interests of Tenants.
The first basic factor a Tenant Representative seeks to secure on behalf of the client is the Location. The first step a Tenant Broker undertakes is to understand the marketplace and undergo a thorough search of the market would be to identify every worthwhile option for your business location. The location drives costs for both labor and leasing costs which the Landlord will strive to maximize compared to what the current market conditions will bear. The costs can vary significantly both among market areas and the situations of particular business owners. A comprehensive search by an exclusive Tenant Representative who will contact every Property Owner and Listing Agent on your behalf in a specific market can serve to uncover hidden opportunities, value that is often overlooked by a Landlords Listing Agents that would rather have you locate your building in one of their property owner's locations. Through a credible market search completed by a Tenant Representative, competition is created for your tenancy, which proves quite beneficial which brings us to our second basic factor, the Lease Negotiation.
The lease negotiation process is the second basic factor that requires attention in order to minimize the cost of office space. It is crucial to take current market conditions into account and negotiate favorable financial terms that complement the objectives of your company. Great deals are not just sitting there for you to find. They are structured through an effective negotiation strategy. In today's market especially, Landlords are offering more flexible lease terms and aggressive concessions to attract dependable tenants. To take full advantage of these favorable market conditions and create leverage in lease negotiations, it is best advised to utilize an experienced Tenant Representative.
The third basic factor key to taking cost effective space is Layout. Maintaining cost control over the design and construction process will be a major contributor in keeping occupancy costs down. A lot of companies today are increasing their focus on space utilization with the objective of doing more with less. Securing the right amount of office space through efficient design, space standards and construction management can produce significant cost savings.
If you are seeking to identify a Tenant Representative to assist on your requirement, we have over 80 agents in key markets throughout the US, Canada and Mexico to assist you. Synergy Real Estate Group, Corporate Advisory (www.synreg.com ), can help you identify a Tenant Representative assist you on your lease renegotiation or office or warehouse relocation. Feel free to contact us at: (888) 979-7787.