July 28, 2009
Mark Rauch's Tenant Rep Times
Southern California Tenant Representation     
Intelligence   Integrity  Focus                                         
 
Taking Your Facility Requirement To A New Level 
Artistically   Creatively   Passionately
           Downtown Los Angeles Cityscape Sunset  
Call or email me if your lease expiration date falls within the next 24 months
   to discuss all of your options-you might be surprised. 
            "Never tell people how to do things.  Tell them what to do and they 
               will surprise you with their ingenuity."     George S. Patton
In This Issue  
 
6 THOUGHTS FOR RENEWING AND IMPROVING YOUR OFFICE SPACE
 
ANNOUNCEMENT   
 
THIS WEEKS RESOURCE
 
POSITIVE MARKET BRIEF 
 
FREQUENTLY ASKED QUESTIONS
 
ARCHIVED NEWSLETTERS
 
Announcement
 

Would you like your company to be profiled in my newsletter which currently has an audience of over 3,000 professionals and is continually growing?
 
In addition to being profiled, your company name, address, phone number and website will become a part of my "Million Dollar Rolodex" of my most recommended professionals.
 
It is one of my biggest desires to consistantly add value to my clients and potential clients. 
 
This Weeks Resource 
Marketing experts are fond of telling us two things: people buy from those they 'know, like and trust', plus they need to receive somewhere between 5 and 9 marketing messages from you, in sequence, before they even begin to notice what you are saying. Or even, pay attention. But whom do we market to and how?
There are three basic steps:
 
1) Focus on developing a targeted list of potential clients you can market to who meet your ideal client profile, instead of assuming that all people are your ideal client.
 
2) Create a highly targeted email campaign, including a monthly newsletter, specifically designed to convey relevant information that adds value to the email recipient, instead of only sending out generic information that's available everywhere.
 
3) Allow clients to tell you when they are ready for your service - instead of asking for the sale again and again.
 
The results will be nothing less than remarkable 

 
Positive News Brief
 
Laid off Wall Streeters find entrepreneurial spirit-Christian Science Monitor-July 23rd 2009-Abridged verson
 
With thousands of Wall Street go-getters out of work, New York has a plan: Make it easier for them to channel their inner entrepreneur.
The city is opening up a small-business incubator just a few subway stops from the financial district. This is where anyone who has a fledgling plan for a small business can apply to set up shop and get off the ground.
What makes the incubator attractive is its low rent - far lower than the cost of most office space in New York City. Also, with multiple endeavors under one roof, the workers can compare notes and feed off one another's energy.
A few perks come with the space, too. The Bill Gates-wannabes will have Bloomberg machines, which provide extensive business data. And the entrepreneurs can get an assist from interns - students from a university.
The city wants the incubator to scale up and up, with the ultimate goal of challenging America's leading entrepreneurial and incubator centers.
"Given the scale of New York and [its] economy, we are hitting below our weight compared to other centers like Boston and Silicon Valley," says Seth Pinsky, president of the city's Economic Development Corp., which is spearheading the effort. "We want to start to carry the weight that is appropriate given the size of the city and our economy."
To get there, the city is spending $15 million over five years. It will also draw on some $30 million in unused 9/11 federal money. Moreover, the city hopes to add some private capital, including $10 million in Angel Funds - money from affluent individuals who want an early equity interest in a promising new business.
"We estimate when this is all said and done, these [efforts] will create 25,000 jobs over 10 years," Mr. Pinsky says. 
Frequently Asked Questions  
Question: Mark, What are the different types of rent?
Answer: The most common types of rent for office space are Full Service Gross, Modified Gross and Triple Net (NNN). Full Service Gross is the most comprehensive rental structure, inclusive of most real estate-related expenses a tenant would normally incur. Most Class A buildings (other than Downtown Los Angeles) offer a Full Service Gross rent structure.  A Modified Gross rent will usually include a tenant's pro rata share of Operating Expenses, but might not include utilities or janitorial services. The least inclusive type of rent is Triple Net. This type of rent is "net" of the tenant's pro rata share of taxes, insurance and common area maintenance (CAM), which means there will always be an additional monthly fee for Operating Expenses. With Triple Net, it's imperative to know what these expenses are up front so they can be factored into a company's real estate budget.

Archived Newsletters
May 4th 2009 Newsletter Premier Issue
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MARK DAVID RAUCH
Greetings!
Welcome to the "Tenant Rep Times".  You are receiving this edition of my eNewsletter because you  rent or own commercial office space and are either my client or a potential client.  I trust you will enjoy this issue and get a "gem" or two out of it.   
 
Your email address will only be used to communicate with you and will NEVER be sold, shared, rented or otherwise provided to other entities.
 
Thank you for taking the time to spend a few minutes with me.

Sincerely, 
 
Mark D. Rauch                               
Senior Vice President
Travers Realty Corporation
Direct: 213-430-2469
Mobile: 818-943-2959
License # 01019455
 
6 Thoughts For Renewing And Improving Your Office Space 
By Mark D. Rauch
 
It often makes sense for a renewing office tenant, who has been in the same location for a number of years, to consider having their office premises re-painted and re-carpeted.  As someone specializing in exclusive tenant representation, it's usually a fair request to ask the landlord to pay for these improvements, particularly for a space with 7 or more years of wear-and-tear. 

If there's a 5-year lease renewal on the table and the carpeting has weathered well, but is just beginning to show signs of age, one question may be, how will these premises look in 2 or 3 more years, when there will be no economic incentive for the landlord to redo the space at that time? Factors involved in how long office carpeting should last include the following: 

High-traffic businesses (i.e. call centers, insurance claims offices, etc.) will experience significantly more wear-and-tear than do professional services companies, such as law firms and CPA offices.
 
Lower-grade carpet, generally speaking, will wear quicker than more expensive, higher grades.  Whether carpet is installed over pad or glued-down, as well as the original floor preparations, may affect wear-and-tear.  What's involved in a "paint 'n carpet job", where the tenant is already in the space?
 
 
Quick Paint & Carpet Jobs
These jobs typically don't involve reassigning offices, knocking-out/ removing walls or significant construction.  They're typically done for cosmetic improvements.  Because the construction isn't significant, the phases will usually occur over a weekend, with the move-out on a Friday and the move-back on Sunday.
 
What You Need To Know Is:
  
1) How big are the phases?
 
2) Where is the staging area?
 
3) When will the contents removal and return phases begin?
 
4) Will there be painting?  Can items remain on the walls?
 
5) Are they carpeting or can contents simply be moved away from the walls for painting?
 
6) Will the office contents be going back to exactly where they came from?
 
7) Who is going to be on site overseeing the return phase?

Always try to stage on-site & avoid trailer storage - trailer storage is more labor intensive, with more opportunity for damage.
· If everything goes back "as is", either request the tenant provide diagrams of each office and/or workstation or allow time for the supervisor to do it, to be posted on the door or cube entrance.

· A lot of times, people won't remodel areas with tile (VCT) floors, so be sure to confirm.

· Make sure the tenant disconnects all computers, even if the furniture is just being pushed-away from the wall, for paint-only jobs.

Major Remodels Involving "Swing Space"
Many times, companies will take advantage of a remodeling, to reconfigure their office. That means different people and departments will occupy different spaces, at different times.  Because these projects take longer, companies will often assign a swing space, where the employees occupy a temporary space.  Unlike a quick paint and carpet job, the move-out and the move-back are not identical.
 
Direct Moves:
 
This is where the employee or department moves once, directly into there final location.
 
Swing Space Moves:
 
This is where the employee or department moves twice, once to a temporary space and again to their final location.
 
Tips:  
· Always try to stage on-site, avoiding trailer or off-site storage.
· Get a detailed floor plan and schedule of who goes where, when, from the tenant.
· A lot of times, these involve temporary staging or storage, so inquire and make sure there is adequate staging/storage space for all the contents, etc. 

Modular Furniture & Remodeling Moves
Modular workstations can dramatically complicate a remodeling move. It's important to know what type of carpeting exists and what will be installed.  Rolled goods is the traditional type used most commonly and will generally require that all cubicles be completely disassembled and removed.  Carpet tiles are usually the less-common alternative, and, though often more expensive, usually can be installed without disassembling the stations.  On such occasions, the cubicle partitions can be raised slightly, using a "lift system", enabling the carpet installers to both demo the old carpet, as well as install the new carpet tiles.
Questions to be answered:
1) What type of carpet exists now & what kind is going back?

2) If carpet tiles, does the carpet company plan on using the lift system?  

3) Will the cubicles be configured exactly the same, in the move-back?

4) Are they adding new product to the existing?

5) Is there enough time (usually Friday pm, Saturday and Sunday) to complete all work to be completed?
Tips: 
· Leave plenty of time to complete the install, usually on a Sunday
· Look-out for weird start times, like 2 AM........try to avoid them! 
 
Who Hires Movers For This Kind of Work ?
Many times the tenant will purchase a turn-key project, where the TI contractor will take-on and manage the entire process, including the move.  It can also be any one of the following:
1) The tenant

2) The TI contractor

3) The building manager

4) The painting company

5) A Project manager
 
6) The Landlord
 
. Be sure to be on site to direct the movers.  This is especially important for the Sunday put-back phase and can defiuse potential unanswered questions that can otherwise result in the need for a return visit to crrect the situation.
· Don't assume the tenant knows how things work.  Most of them don't normally work with movers and many of their sub-contractors tend to be somewhat independent. We need more interaction with the tenant than the others.
 
Miscellaneous

· Clearly define packing and labeling responsibilities, because your customer sometimes doesn't view this like a regular move.  They think they can just leave Friday and come back Monday, without any inconvenience.  If a contractor is involved, make sure you define these responsibilities.  They may have given the  tenant an expectation of some kind.  Remember when we report to the contractor they have usually sold the customer a "turn-key project".
· Instruct the customer and the crew, to make a special note of punchlist items for the construction company, because they generally won't have time to note incomplete or damaged areas - The time frames are often too short. 
· Look-out for special finishes, like marble floors, wood-grain walls, etc.  There is usually no time for the contractor to do a punchlist and the mover is often blamed, in an effort to get change orders

· Look-out for freshly painted walls.  If the paint hasn't cured, wall protection can not  be installed - blue tape, commonly used to install wall/corner protection, can cause problems.
Proper planning and preparation can go a long way toward a smooth outcome, on paint and re-carpeting projects.

Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document.
My focused speciality is solely driven to advocate the office space interests of Southern California-based corporations and professional services firms in leasing and purchasing negotiations of all types-renewals, relocations, renegotiations, recasting, subleasing, terminations and investments on a local, regional, national and international basis through a network of offices in 200+ markets around the world.
 
Assignments range from single office lease transactions to national and multi-national real estate portfolios.
 
It is my sincere desire to develop meaningful, long term relationships as your trusted Tenant Rep Consultant and friend.
 
Regards, 
 
Mark
Mark David Rauch
Senior Vice President
License # 01019455 
Travers Logo
550 South Hope Street, Suite 2600
Los Angeles, CA 90071
Direct: 213-430-2469
Mobile: 818-943-2959