Most companies understand the value of tenant representation and advisory services if they are looking for new space. A tenant advisor can help business owners identify on-market and off-market sites saving you an enormous amount of time and effort. Additionally, the business owner can recognize increased savings through exploring the market and increasing negotiating leverage in a competitive marketplace.
But, what about on renewals? Why should you hire us?
The majority of our business is not moving a tenant to another building or even another space. Most of our work is spent renewing tenants in their existing space, downsizing (rightsizing) tenants in a portion of their larger space, or expanding tenants to neighboring spaces. Most landlords look for some sort of additional lease term (renewal or extension) in exchange for a downsize or expansion.
Because of the apparent simplicity of a renewal lease/extension, many companies do not take the time to engage professional representation when they receive the Landlord’s call to discuss the status of their lease. However, an analysis of current transactions illustrates that the majority of the highest rental rates in the market result from companies who do not engage a broker specializing in tenant representation.
In addition, not only do these companies lose the opportunity to achieve significantly better economic terms, they also ignore the chance to renegotiate the onerous lease underwriting terms, which were forced upon them at a time when the market was different. A tenant represented by a real estate advisor creates the impression that the tenant is willing to exercise the market and potentially relocate. This helps motivate the landlord to offer the most competitive lease rate.
Let’s analyze the facts:
The Landlord Facts
- Renewals are a landlord’s most profitable transaction
- The landlord knows the market and is very active in it
- The landlord has representation
- The landlord knows the competitive properties
- The landlord understands supply and demand in the market
- Real estate is the landlord’s core business
- The landlord understands a lease
- The landlord leverages their market knowledge to maximize transaction value
- The landlord capitalizes on potential inefficiencies of corporate decision making
The Whitebox Facts
- Real estate is OUR core business
- We cost you nothing
- We know the market and are extremely active in it
- We have a fiduciary solely to our clients
- We have depth of market knowledge and can leverage the best possible deal
- We understand the supply and demand in the market and use it to our advantage
- We understand a lease and negotiate renewal lease
- We have insight regarding the landlord’s business philosophy
- We save you time
- We take emotion out of the transaction
- We have a fiduciary to show you all properties in the marketplace
We get it, we are entrepreneurs, too. We like to win and the feel of getting the best deal. Let us be your tool to achieve those goals. We work for you and cost you nothing.