Choosing the right office space can be a challenge for both the tenant and the commercial real estate owner, but not if you have a broker! The key to creating a good deal between the tenant and owner, is by finding the right balance. The person who will help you find this right balance is a broker, who has your best interests in mind. This broker will usually ask the following questions and inquiries.
What does the Tenant want?
When finding the right location for your tenant, they most likely have asked you the standard questions: How many square feet is the office? What is the price per square foot? Will they provide an architect to remodel my new property? They will also want certain parameters of the office space: I want the building to be only a few miles from X. I want to make sure their is a room dedicated to my servers. I need to have a space for at least 4 offices inside the property.
This is the easy part! Your broker should be versed in the vast knowledge of the available properties around you, to find one that will suit your need. However, it is sometimes hard to find the “perfect” location. That’s when you need to prioritize.
Prioritizing their needs
Since it is especially hard to find that perfect match, what features of the property does the tenant really find value in? When meeting with the client, find out what is really important to them, as in, what are the “must haves” of the property they are looking for. If they have the most important items, are they willing to compromise on some of the other features? You want them to have a great experience finding a new property for their business, but you want to set realistic goals for them. If they will not budge on certain parameters, they may miss out on choosing a property that will suit them just as well.
Working with the Owner
Sometimes even when a company finds the right location and office space, they may end up being unhappy with the price per square foot. That’s when they can speak with their broker, who will negotiate with the owner of the property. Say the price per square foot is $27, for a 3 year lease, one way to make both parties happy is to provide value to both the tenant and the owner by lowering the price for the tenant, and extending the lease agreement for the owner. This way, the tenant gets a lower price, and the owner receives more assurance on their property.
Each tenant and owner will be different! That’s why you need to make sure you have a broker who understands both parties’ wants and needs before showing the properties to end up with the best outcome possible!
If you have any commercial real estate questions or concerns, please call Scott Douglas at 301-655-8253, or join our monthly newsletter here!