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Tenant Reps Should be Involved in Almost All Landlord Communications
By: Washington Realty Group, Inc.
August 2011
As long as companies conduct business inside a building, their office space will continue to be critical to maintaining success. The simple act of occupying commercial square footage impacts the way daily business is conducted. While levels of involvement with your landlord may vary on occasion, it's crucial that business leaders react to employee issues, physical problems and financial questions as soon as possible.
Addressing concerns over your space also leads to another critical question: To what degree should you involve your tenant representative when dealing with every-day landlord issues?
The short answer: almost always.
It is important to understand that every interaction with your landlord is in essence a negotiation. Your questions, concerns and complaints become fodder for consideration in renewal or expansion scenarios.
Like a patient in a medical practice, you have a record in your landlord's office. Each time you engage the landlord for repair or services, it costs them money and goes on file. And they know which tenants cost them the most. Therefore, consider strongly contacting your tenant representative to, at the very least, receive advice on how best to address your landlord for even menial concerns.
Many landlords forget, or neglect, their legal responsibilities to their tenants when a property concern arises, whether it be unsafe lighting in a parking area or a broken window. Or, they may suggest a "joint effort" to resolve the issue. Again, for the landlord, it's about minimizing expenses.
Since it is the job of your tenant representative to comprehensively understand your lease, they can quickly let you and your landlord know which party is responsible for addressing the myriad of issues that arise in a commercial office building.
You should always send a copy of your year-end Operating Expense Reconciliation to your tenant representative immediately upon receipt, as this is when disputes with landlords will often crescendo. Even if a lease audit isn't needed, there are almost always reasons to double-check what your company owes its landlord. This will involve reviewing the lease and exploring the number of ways superfluous costs can be hidden by the landlord. You may even be charged for expenses that you were assured were the landlord's responsibility. And once again, it takes careful communication to work through the confusion. |
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Debt, Downgrade and Double Dip Throw CRE into a New Cycle of Uncertainty
By: Mark Heschmeyer, Costar Group
8/10/2011
Marty Busekrus, a senior associate investment properties for CB Richard Ellis | Capital Markets in Boca Raton, FL, got a call this past Monday morning from a potential office building buyer as mania struck the stock markets. The buyer, who has been trying to buy an office building from one of Busekrus' clients, said his seller better sell quick as the stock markets were tanking.
Busekrus contacted the seller who responded with a different take, saying instead that everyone is shifting to hard assets so he's thinking about raising the price.
Read more: http://www.costar.com/News/Article/Debt-Downgrade-and-Double-Dip-Throw-CRE-into-a-New-Cycle-of-Uncertainty/131182 |
How the Office is Evolving
By: Eric Kintz, GigaOm
8/5/2011
The traditional office space is in the midst of its most dramatic shift since it was rocked by the creation of the cubicle more than 40 years ago. Driven by new communication technologies, the globalization of supply chains and an increased emphasis on real estate cost reduction, we've seen a massive change in the way people work.
The "New Office" is an airport lounge on a tablet, a midnight video call on the kitchen counter, a shared table at the office or a collaboration pod for ad hoc meetings. These new workspaces create fresh challenges for IT departments and technological demands from today's workforce - from new productivity tools to broader communication and collaboration solutions.
Read more: http://gigaom.com/collaboration/how-the-office-is-evolving/ |
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Office Tenants Should Always be Planning for the Next Lease
By: Washington Realty Group, Inc.
August 2011
You have heard that it's wise to begin preparing for your lease expiration at least 12 to 18 months before its culmination. In truth, you should always be planning for it.
Even in the middle of a long-term lease, aspects of your business are changing that will impact future occupancy scenarios. If you're growing, then an expansion will be necessary. If you're workforce has become more mobile or your company has outsourced an entire department, then another, more flexible solution is required. Every significant shift in business needs to be made congruent with your facility needs.
It's very possible that a relocation may not be needed, especially in today's market. Ask your tenant representative to compare market alternatives to remaining in or reconfiguring your existing space to provide the best solution. Nevertheless, even staying in the same building needs to be planned for with similar attention to business requirements. Tenants will have the greatest negotiating leverage well in advance of the lease expiration.
It is also critical to remain abreast of your local real estate market, which is why maintaining consistent contact with your ATR tenant representative is important. Space that is available this month may be unavailable next. Or, it could have been subdivided or made part of a larger space. With every change in your market's vacancy rate, whether positive or negative, your next occupancy scenario is altered.
With early planning, you provide yourself the time it takes to accumulate the information needed to make the most fruitful decision. It helps to spot trends, watch your competition and understand the geographic nuances of your market. If one particular area is becoming a hotspot for brands in your sector, do you join them or create awareness by bucking the trend? Are your employees gradually collecting in a specific area? These are pertinent factors in office space decisions that require months of tracking to be properly assimilated into your real estate strategy.
If you're not in a rush and your operational and geographic needs are in order, you'll have a more stable foundation on which to base your negotiation position. That foundation is best built over time. |
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Guaranteed Front-Row Parking Downtown for 69 Cents a Day?
By: Vicky Garza, Austin Business Journal
8/5/2011
The city of Austin may consider making changes to valet operations downtown, including increasing permitting fees and creating valet zones. The recommendations were included in a report on extended meter parking hours by the joint subcommittee of the Urban Transportation Commission and Downtown Commission to help manage downtown parking.
The changes could go into effect before the beginning of next year, when most valet operators renew their permits. With an increase in development downtown, on-street metered spaces have become a very valuable city asset.
Read more: http://www.bizjournals.com/austin/print-edition/2011/08/05/guaranteed-front-row-parking-downtown.html |
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