Why use Tenant Representation Services

Throughout my career, I have enjoyed providing tenant representation services to many businesses assisting them with their real estate decisions. Ownership brings many benefits, and additional duties. Leasing permits you to focus solely on your business; making the day to day decisions of building operations and maintenance “someone else’s problem”. Neither choice is inherently right or wrong. It is my job to make certain that my clients enter into these commitments with the best possible information that I can provide.

Many times I have heard prospective clients express a concern about being “tied to one broker”. This seems to be based in one of two thoughts. They had a bad experience with another broker that was unresponsive and unprofessional or they fear that they will not see “all of the options” that are available. The reality is that the only way to receive a comprehensive overview of the market is to “hire” your advocate. As a commissioned broker we are compensated only if and when a transaction is consummated. Our coin in trade is the time spent working with or securing clients. Brokers that are working without a commitment will spend the bare minimum performing the service. Economics 101 dictates that they mitigate the risk of working on “open listings” by presenting only the “obvious” solutions. As a business owner or manager, your time is valuable. If you want the best possible service, see more alternatives, and spend your time more efficiently does it not make sense to work exclusively with one qualified broker?

We ask that our clients engage Avison Young Pittsburgh just as they would any other professional. The client is not obligated to move or to pay us for our services. We seek compensation from the owner of the property and/or operate as a sub agent under a listing agreement with another broker if the property is listed. This commitment insures total engagement, presenting all available or potential options for review and consideration. My best source of new business is providing superior service to my existing clients. Referrals from a satisfied customer are the second best form of business generation, repeat business is the first!

OK We have secured your business. What exactly is the service that we provide?

Defining the Requirement

We team with numerous professionals to help our client clearly define their requirements. Architects can be an invaluable tool early in the process. A Needs Assessment can be commissioned to determine if you are efficiently using the space that you are in. The architect can identify process, linkages and workflow to best determine the most efficient layout for your space. Often we have found that a client may be renting more space than they actually need. This is powerful knowledge; especially when negotiating a lease renewal. We believe it is imperative to undertake this process to insure that we are searching for the correct space for current and future operations. After the requirement is clearly defined, we prepare an outline of the requirement which will eventually be used in the Request for Proposal.

Market Survey

We can now go to the market with an educated request for submittal. Using our proprietary database of brokers, economic development officers, developers and other industry stakeholders we make certain that all interested parties are put on notice of the upcoming requirement. This is important in that even with the best and most comprehensive access to commercial real estate databases we can never be sure that a landlord or broker does not have knowledge of a space coming to market through a lease termination, relocation or newly proposed building. Coupled with this request for submittal is a thorough search of all of the available listing services; CoStar, Loopnet, REIS, etc.

Qualifying the Submittals

The submittals are received from the owner’s representatives or brokers who have a suitable alternative listed or are aware of an alternative that may soon be available. An example of this is the facility presently occupied by your company. If you relocate as anticipated, the building you currently occupy will be available for lease or for sale. Brokers are aware of these “unlisted” opportunities and will make us aware of such unlisted alternatives. Additionally, submittals are reviewed from databases systems that specialize in commercial real estate information. We will continually search both current listings and alternatives that become available during the search process. We will track ALL new properties that hit the market via CoStar / Loopnet through filters that we design.

Touring the Alternatives:

Once the submittals have been received and qualified, we will assemble a tour package with a summary, brochures on each property, floor plans of each property, and a locator map. All of the alternatives to be toured will have been previewed by the team and a route programed using proprietary software which maximizes your time.

Requesting Proposals:

Once all of the alternatives have been toured and a few of the best choices have been vetted we then present a customized, detailed Requests for Proposals to the most likely candidates. Test fits will be requested to provide an idea of the efficiency of the targeted space, or the suitability of a potential acquisition.

Negotiating Economic Points:

The team will prepare a comprehensive analysis of all proposals received. This may include lease vs. own analysis, Net Present Value calculations of the proposed lease terms and the “soft” issues such as proximity to key employees, amenities, access to public transit and other “Qualitative” requirements. Once the best alternative is selected a non-binding Letter of Intent is executed detailing the business terms to be expressed in the lease or agreement of sale.

Execution:

The team works with local or corporate counsel to negotiate a final document in conformity with the Letter of Intent. The terms of the final document are monitored and tracked during the construction of the tenant improvements or the due diligence period of the agreement of sale. Key dates are noted and reminders sent out to the clients to help monitor the critical path to occupancy.

 

 

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