If you are considering a lease renewal or relocation, you should always tour competitive properties with a trusted broker to investigate the market to leverage your negotiation position. There are many things to keep in mind when seeking a renewal or a relocation, but most importantly as a tenant, remember you are seeking a long-term financial relationship in the form of a lease. Below are 5 tips for touring office space:
Prepare for the Tour and Have a List of Questions to Ask
Did you give your broker sufficient guidelines or requirements that match your desired area, rate, type of building (high rise, low rise) square footage, and timing? Your broker should be helping you in asking the right questions, however, be sure that if these questions aren’t asked, these details are communicated. Your Brokers skills and experience matters, but communicating your full office space needs as a Tenant greatly enables them to put their best into practice for you. Once you get a list of potential properties, make sure you understand why these properties were chosen.
Limit Your Tour to 5 Properties
Tenants should be able to select a set list of their “top 5” properties they would like to tour from the properties provided from their broker. In my 30 years of practicing real estate as a tenant representation broker, I have found that most Tenants tend to lose focus, properties tend to start to blend together, and they stop taking notes after a certain amount of time. It’s my recommendation that if you desire to see more buildings, ask to divide your tour into separate days.
Is the office pipeline outpacing demand?
Listen to Listing Broker or Landlord’s Presentation
In the best case scenario, your tour is scheduled so that you and your broker can meet the Listing Broker or Landlord. They are usually knowledgeable regarding the building and can answer most questions you may have as a potential future tenant.
Do Not Undermine Your Negotiation Position
Once you selected your short list and toured the market, you hopefully will have found your ideal, compatible office space which can be very exciting. However, my fourth tip for you is to not overexpress your enthusiasm and not to reveal any key information to the Listing Broker. If anything, let them know you are on tour and looking at other buildings as well. As a potential tenant, don’t undermine your negotiation position when a Listing Broker asks you questions. Always refer them to your experienced Tenant Representation Broker who knows the ins and outs of the negotiation process.
Compare the General Appearance, Amenities and Upkeep of the Building
A tour gives you an opportunity to evaluate each building – pretty obvious enough. Taking pictures and notes also may help you remember details. But I advise you not to forget about the details that so many clients need reminding of. Check out the following as you tour the property.
- Condition and cleanliness of the Lobby and Restrooms;
- Condition and responsiveness of the elevators, HVAC;
- Amenities of the building (i.e. Conference rooms, work out facilities, eating establishments, internet providers)
- Tenant roster, like type Tenants, do they have a lot of foot traffic ( i.e., Doctors) if you’re not a medical tenant
- Parking, surface or covered, cost of parking
Your tour may provide you with an opportunity to judge the leasing/management staff, Landlord; who will play an important role if you sign a long term lease. Take the time to form an impression as you tour each potential option.
Exploring commercial leasing is in-depth and challenging. You should retain a Commercial Tenant Representation Broker to help you decide which properties are best for your business and guide you through the relocation/renewal process. Our expert team has what you need to find the best Denver office space for you. If you are in current need of representation or simply would like to speak with an expert, I encourage you to reach out. Call Steve Miller 720.881.6346
By: Steve Miller, Senior Broker
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