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GWCC is a Temporary Hospital for COVID-19…Again

coronavirus

Georgia authorities began using the Georgia World Congress Center as a temporary hospital in April of 2020 to handle COVID-19 excess patients. The focus of the center is on the patients with mild to moderate coronavirus symptoms. Per Georgia Emergency Management Agency’s Deputy Director Mark Sexton, “The intent is to let the local area hospitals have a location where they can move the patients out that are beyond their most critical needs, and place them in this facility so we can let them complete their recovery. It looks like a hospital.” The governor has acknowledged that moving more patients with coronavirus to the GWCC would help to relieve the burden on state hospitals.

Recently, with coronavirus hospitalizations growing to record-breaking highs, Governor Brian Kemp is reopening the facility after it closed on May 16. When it was initially opened, it was in anticipation of an expected peak of cases around April 26. The peak never fully developed, however, and the hospital was broken down. The state reported a single-day record high of 4,484 new cases on Friday, and the alternative care facility was contracted back into use, with an expected addition to the infrastructure of nearly 100 ICU beds.

As 82% of Georgia’s critical care beds are in use, hospitals are rapidly reaching capacity. Emory Healthcare claims hospitalizations of COVID-19 patients have tripled in the past two weeks. The state, in addition to the care facility at the Georgia World Congress Center, has sent mobile care units to Albany, Rome, Gainesville, and Macon.

While more and more hospitals are approaching maximum occupancy and cases continue to increase, it seems that for quite some time we may not hit the peak. Per Governor Kemp’s office, “The state is coordinating and paying for increased staff at dozens of healthcare and long-term care facilities across Georgia. We are supplying personal protective equipment, working with local leaders, and projecting future needs in accordance with the Department of Public Health’s guidance at every turn.” If we keep going in a similar direction, we will leave coronavirus in the past and move forward with a stronger, safer, healthier future.

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Atlanta Snapshot: Change is Coming

Atlanta

While the city has not exactly been bustling…

with the high energy it normally would be this time of year, it is certain that change is coming to Atlanta. You may not see those changes immediately due to current events, but by the time the city is up and running again, it will seem like you are walking into a brand new Atlanta.

As the first order of business, you may have noticed that our governor, Brian Kemp, and Atlanta’s
mayor, Keisha Bottoms, have been in utter disagreeance over the issue of reopening. She announced on
July 10 th that she, her husband and one of her four children tested COVID-19 positive. She was adamant
on rolling the city back into Phase 1 that same day, making mask use mandatory. All at the same,
Governor Kemp insists a mask mandate is impossible to enforce and claims the city should not be drawn
back into Phase 1. Except for essential trips, individuals are to stay at home when possible, wear a face
mask when in public, and follow social distancing protocol when under Phase 1.

Restaurants and retail establishments are to return to To-Go and curbside pickups, and nonessential businesses and facilities will remain closed. Per Kemp, “Mayor Bottoms’ action today is merely guidance both non-binding and legally unenforceable. As stated, no local action can be more or less restrictive, and the rule applies statewide. If the Mayor actually wants to flatten the curve in Atlanta, she should start enforcing state restrictions, which she has failed to do.” Asked what state restrictions were not enforced, the office of the governor claimed that he was unavailable to comment. The mayor says, “As it relates to the mask mandate I do find it peculiar that when the city of Savannah instituted its mask mandate, that the
Governor’s office was silent on that, yet when Atlanta has instituted, suddenly the governor’s office has
a public opinion about it.”

Then Brian sued Keisha…the saga continues. 

As of July 6th, the Georgia World Congress Center Authority has announced the indefinite closure of the
Centennial Olympic Park. Their executive director, Frank Poe, says “The financial ramifications stemming
from this global pandemic have hit the hospitality industry, including Georgia World Congress Center
Authority, especially hard. The park relies on operating support from GWCC and without event activities
on our campus the costs associated with maintaining public access to the park is not feasible.” The
Authority will work “in anticipation of daily use sometime in the future” to preserve the green space and
landscape at the park. Also this year due to the pandemic, the annual Fourth of July fireworks
celebration at the park was cancelled and the GWCC is being reactivated as a COVID-19 overflow facility due to the record-breaking spike in cases.

Dragon Con 2020 will not be held in person.

adding to the list of recent cancellations. They have instead opted for a virtual version of the event. This virtual version will be free, and will feature new content as well as virtual cosplay events, “best of” panels, and events from previous years. Anyone who has purchased a membership for 2020, it will be rolled over automatically to 2021. Anyone who wishes to have a refund can request it through a Google form attached on their website.

Several businesses are now closing, along with cancellations due to the ongoing pandemic. The Decatur-
based Highland Bakery recently permanently closed its doors. Since mid-March, the restaurant has been
closed because of the pandemic, however, several other Highland Bakery locations remain open, such as locations in the Old Fourth Ward, Cumberland, and Midtown. Highland Bakery joins various other recently permanently closed Decatur restaurants, including Doggy Dogg, Ted’s Montana Grill, and The Pinewood. Further closures throughout the city include Genki Noodles and Sushi, Amelie’s French Bakery, Dantanna’s, and Mother Bar + Kitchen. In addition, The Varsity closed on Thursday after an employee tested positive for coronavirus. The restaurant’s doors will reopen but the drive-in service will be forced to stay closed. Management says the decision to close the drive-in service comes as a result of multiple problems posed to the restaurant by COVID-19. Evaluating the current situation and gauging the difficulties of social distancing, masks, plexiglass protection and other issues, keeping the drive-in service open was seen as almost impossible. One of the biggest problems The Varsity faces, along with other businesses in Downtown Atlanta, is the lack of visitors. Without sporting events, concerts, conventions, or other attractions, it’s tough to get people in the door, even for a city icon like The Varsity.

Opened in 1973, Woodruff Park features 6 acres of land between Peachtree Street NE and Park Place
NE, including two fountains, a performance pavilion, and several monuments. Located in Atlanta’s
geographic center, the space attracts thousands of Atlanta residents—and with that, hundreds of
homeless individuals. The solution to this, though, is simple.

Woodruff Park has its own case manager.

Woodruff Park is one of few parks nationwide that has its own case manage or social worker. Janika
Robinson, who works at least three days a week in person due to the current state of global affairs, is
dedicated full-time to providing housing, social assistance, and service referrals to anyone who
approaches her or that she comes across. In September 2018, she became Woodruff’s first case
manager, and since her employment, she has helped to place 135 people in permanent housing and
connected over 1,000 others to social services. 

We need good Samaritans in these uncertain times, to help lift our spirits. There’s been consistently
more bad news now than ever, and little success stories are helping to brighten our hope for the world.
If there is anything small or large that you can do to help or support a person, group or business in your
vicinity, please do so. The little things count and they help a ton!

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The GMA is Under Way

commercial real estate construction with people standing

GMA New Headquarters and Renovation Project

On February 1st of 2019, the The Georgia Municipal Association, Inc. (GMA) began soliciting proposals from firms interested in providing professional architectural services for the construction of a project known as the Georgia Municipal Association New Headquarters and Renovation Project, located in Atlanta, Georgia, consisting of a new building, a parking deck, and a renovation of an existing building.  New South Construction broke ground on new downtown Atlanta headquarters at the top of 2020. Truist financed the project.

On Monday, January 27, 2020, the GMA held a groundbreaking ceremony for the new four-story, 27,000-square-foot building.  The building brings GMA much needed additional office space, and will include a five-story, 146-space parking deck to directly connect three (3) floors of the building. The new building will include a first-floor conference room for GMA Board meetings and other functions for a capacity of 140 people. The fourth floor of the building will feature a roof-top terrace large enough to accommodate up to 200 people for special events. The existing 24,000-square-foot building, The Burgess Building, will also be renovated and connected the new building via a beautiful courtyard.  The new building is scheduled to deliver in December 2020, however, the pandemic may affect the timeline.  Not unlike a bulk of what has happened this year, this project is history-making.

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Navigating 2020 – A Tenant Rep Broker’s Story

Downtown Atlanta Commercial Real Estate Specialist Re'Nauta Bell

Downtown:  My Home

I wanted to take a different route and talk to you guys more on a personal level about business.  This year has been quite tumultuous for most people, including myself.  My story is the same.  Only the details are different.  I think we all came into 2020 believing the turn of this decade would bring magic and wonder in the form of new opportunities…but all we’ve really seen is chaos.  Who would have thought the world would end up on this path?  My own journey through this has been interesting.  I’ve been at three different brokerages in my career and, alas, I finally found my home.  In mid-March of this year I started working as a tenant representation broker at my dream brokerage, however, my first day was the day they shut the offices down for the pandemic.  It was an eerie feeling.  I found myself sitting in the lobby waiting to be called upstairs and, despite that the building itself is 41-stories tall and there’s a waiting list for the parking deck, I was the only one there besides concierge and the cleaning crew.  I wasn’t sure how to feel or what to expect, but I certainly didn’t think I’d be writing this blog post 3 ½ months later from my home office.

Navigating the commercial real estate industry is tough enough but when you add a pandemic plus rioting, it tends to complicate things even further.  It also doesn’t help when the bulk of the rioting took place in your chosen submarket of focus.  Since things are unsafe on so many levels, I usually only leave my house to buy groceries and to take clients out on tours, but I made an exception last week.  A client needed assistance with site selection, so I had to venture out to my submarket of choice.  I decided to bring my son, a future broker, along with me so he could take notes and get some exposure and real-life training.  I thought it would be great to take him to my favorite taqueria before we got to work.  I found some street parking and we started our walk to the restaurant.  As we turned the corner to get to the street we were looking for, my heart sank. 

Am I really not getting tacos today??

It was as if I wasn’t aware of all the rioting that took place there.  Maybe on some subconscious level, I momentarily blocked out what happened in order to enjoy that moment of walking to my favorite Mexican restaurant with my son.  I’m not sure what it was exactly, but when I saw at all those amazing restaurants boarded up, I became deeply sad.  Knowing destruction is one thing.  Experiencing it is another.  Then I thought about my career.  “How am I going to navigate this storm?”  I couldn’t let myself get down in front of my son, so I decided to discard the bigger gloomy cloud and focus on the smaller one.  “Am I really not getting tacos today??”  Even though it looked like a boarded-up ghost town, I decided to start walking down the street anyway.  Right as I was about to apologize to my son about the food, I saw two college students walk out of the restaurant.  The joy I felt was immense (nowadays, it’s all about the little things)! 

My first thought was, “Yay…I get food!”  My next thoughts were about hope.

Going into that taqueria and ordering the same thing I have always ordered from the same man for the past 4 years gave me hope.  It renewed my belief that there is always a positive outcome if you try hard enough.  It showed me that even though there may be barriers in life right now, beautiful creations are still cooking within those walls, even if you can’t see it.  It reminded me that I can find some peace and stability in this, and you can too.  All you have to do…is keep walking anyway.

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FOR SALE: The Heart of Downtown Atlanta

cnn center downtown atlanta georgia

Downtown Atlanta is shaking some trees

I heard about the sale of the CNN Center last night and I cannot stop thinking about it!  The CNN Center, located in Atlanta, Georgia, is the headquarters for CNN and other WarnerMedia companies around the world. WarnerMedia, deeply rooted in the Atlanta culture, made the bold decision to sell the CNN Center and relocate operations to its newly renovated Techwood center. The change will not be immediate, and employees will remain at their present location for quite some time. This makes sense considering WarnerMedia unveiled a commissioned mural portrait of Turner at the building park late last year.

WarnerMedia plans to sell and lease back the CNN Center for at least five years in an effort to raise capital.  Desroches has been working for some time to determine the highest and best use of the CNN Center and, he and his team, have ultimately decided the best course of action is to sell.  Furthermore, many of CNN’s most popular, have moved to New York City.

 

Only time will tell…

Opened as the Omni Complex in 1976, the CNN Center has been a tourist attraction for decades, providing behind-the-scenes tours that allow an inside look at how live broadcasts are created and transmitted globally. CNN has occupied this building since 1987, when Ted Turner moved the network from the original Techwood campus. The center featured the Omni Hotel and a large food court and gift shop.  On May 29th, protests over George Floyd’s death at the hands of police turned violent, resulting in damage to the exterior of the building and some part of the interior. The famous CNN sign, located at one of the main entrances, was damaged too but was fixed the next day.

It may seem that the protests sparked the decision to sell, and although the announcement was made only one month after the initial damage, that’s not the case. The decision to sell the property was made to cut costs has been in the works for years.  The plan was set in motion after AT&T purchased Time Warner. Perhaps rioting and disruptions were unpleasant catalysts setting the plans into immediate action, or it was initially been projected for this time frame. Pascal Desroches, CFO of WarnerMedia, suggests that the existing CNN Center could be repurposed from an office building to have more emphasis on retail and mixed-use.  That could be an amazing addition to the downtown submarket.

Over its 30+ year presence in Atlanta, the CNN Center has had a major impact on the city.  Just a few years ago, in honor of the founder, the road that runs in front of the building was renamed “Ted Turner”. While they aren’t turning their back on the city, the move will displace a significant number of WarnerMedia’s 6,000 Atlanta personnel.  Because of the ongoing pandemic, we probably won’t see the effects of the relocation for quite a while. Who knows?  The move may very well be for Atlanta’s benefit.  Only time will tell.

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Why You Should Expand Your Business to Atlanta

Atlanta Skyline

If you are a smart business person and have ever considered a business move that you know could take you to the next level, then consider Atlanta.  It’s a good look and the right move for fast-growing companies who are looking to expand into a strong market.  Atlanta has so much to offer (way too much to shove inside one article), so let’s just focus on downtown for now.

DOWNTOWN ATLANTA

You may have already heard about the amazing connectivity the Atlanta Beltline is providing and new developments are still underway.  Take a look and see what’s happening in ATL!

 

ferris wheel

 

 

 

 

 

 

 

 

 

 

 

 

    • The Beltline is slated to be connected to Centennial Park via a 3 mile trail which will be erected by the PATH Foundation.
    • Germany based developer, Newport, has purchased 47 properties downtown on Peachtree Street, Martin Luther King Jr Drive, Mitchell Street, and Broad Street.  Newport plans to do a $500 million makeover which will give south downtown a facelift and a brand, new swagger.
    • The proposed Signia Hilton Hotel, designed by Gensler, is slated to kick off in late April or May soon after the NCAA Final Four Tournament.
    • The former Norfolk Southern Atlanta HQ is being transformed into a $70 million, 280,000 square foot adaptive-reuse project called Freight House which is conveniently located right off of Highway 20.  It will house 6-7 retailers, 50,000 square feet of office space, and hundreds of new residents.  This project will be hot and will link downtown and Castleberry Hill.
    • Underground Atlanta is also getting a “touch up”.  The property will change into a $300 billion blend of apartments, student housing, and retail.  It encompasses 12 underground acres plus 225,000 square feet of shopping and entertainment.
    • The Gulch is probably one of the city’s most awaited projects.  It is being rebranded as the Centennial Yards which will be a $5 billion dollar mini city consisting of 8 million square feet of office space, 1,000 residences, 1,500 hotel rooms, and a regional mall’s worth of retail.
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downtown atlanta

 

 

 

 

 

 

    CAN WE SAY, “PRE-LEASE”? 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We are talking about $10 billion dollars in new developments slated for downtown.  In addition to that, an 8 member 501(c)(6) CPD (Central Park District) advisory committee, including major property owners as well as representation from the Atlanta Convention & Visitor’s Bureau, has been formed.  They are working together to pool resources to make Atlanta more appealing to visitors and to attract more tourists. 

Strengthen your brand, elevate your standards, and turn your “shoulds” into “musts”.  Atlanta is where your business should must be.

 

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What Can a Tenant Representation Broker Do For Me?

What Can a Tenant Representative Do For Me

Got Difficulties?  No problem.

 

If you are seeking commercial office space to lease for your business, hiring a skilled tenant representation broker is the way to go.  With a tenant representation broker, you will find that many of the difficulties associated with finding commercial space will be alleviated.   A good tenant rep broker will find you the office space that meets your companies needs while paying attention to your bottom line.  Read on to find out what a tenant representative can do for you:

 

#1  Offer Industry Insight

During the search or the negotiation process, you might have some questions to ask about choosing the ideal office space and what makes the most sense for you.  A tenant representation broker will enlighten you on areas where you hold leverage as well as areas where the landlord may not budge on negotiations.  This knowledge comes from handing several transactions in your respective market.

 

#2  Help You Establish Your Needs

 

With some experience in the bag, tenant representatives know the right questions to define what kind of office space will be ideal for your company. After a meeting with your tenant rep broker, you may find that your primary idea of a perfect office might not be the best fit for your company after all.

 

#3 Explain Your Market

 

It is challenging to determine whether you’re getting a fair deal from a landlord if you don’t have an accurate understanding of the market. A tenant rep broker can provide you with data to help you see how an offer measures up against current market rates in the area.

 

#4  Tell You About Pocket Listings

 

Many office spaces are not advertised to the general public. Landlords need tenants so they tend to have good relationships with tenant reps.  This direct connection to the landlord can help you gain access to places that you may not have considered or had access to on your own.  Experienced tenant brokers are familiar with the tenants in the buildings located in their sub-markets and know those who are not renewing their leases.  This insider knowledge could afford you the option to snag a great and sought-after space.

 

#5  Have the Right Connections

 

A lot of tenant rep brokers have existing relationships with space planners, interior designers, and real estate attorneys and can help you with referrals for capable professionals whose services you may need in the future.  If you have a good tenant rep, they may help you manage some level of the build-out stage.

 

#6  Help You Win Leverage

 

When you have a tenant representative beside you on the table, you’ll have an extra advantage during the negotiation process. The tenant rep broker will argue in favor of your company and help you engage the prospective landlord. They will make sure you get favorable concessions and make sure all business terms are correct in the final lease draft.  A broker can also point to you the right time to agree or when it would be better to walk away from a deal.

 

#7 Help You Read the Fine Print

 

Commercial leases are very complicated, long documents, filled with things you might not understand properly. Lease drafts tend to be very landlord-centric and, sometimes, can be outright ridiculous.  On your own, you may not understand this fact but a tenant rep broker can read the fine print and see clauses that could be problematic in the future.  In addition, they can explain in simple terms what the lease agreement entails before you sign the agreement preventing you from making a poor business decision that could affect you for years.

 

#8 Not Charge You A Penny

 

The tenant representative’s fee is taken care of by the landlord, not your company. Because of this, you can enjoy all the benefits of having one on your team during the search and negotiation process without altering your budget.  It’s a win-win for you!

 

#9 Security

In conclusion, having tenant representation is truly essential in securing good office space for your business. It also will create security in lease negotiations.  The tenant representative helps you identify hidden opportunities in the market and make your search easier.  With all of this said, doesn’t it make sense to hire a tenant rep broker?  What do you have lose?  A lot if you go about your commercial real estate search without representation.

 

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Renewing Your Lease? Consider This First!

Renewing Your Lease

Need to Renew?

 

Renewing a lease can be a pretty overwhelming and complex situation for corporate tenants who are accustomed to simply doing their job and not worrying about real estate.  While that’s tough, it’s also a way to learn what the current market is doing and how the current position of your business can determine whether you can negotiate better lease terms moving forward.

When you truly understand your options during a lease renewal negotiation, you can be a force to be reckoned with.  A tenant representation broker will arm you with market knowledge that you may not otherwise be privy to, help you to negotiate a lower rate, acquire additional amenities, and secure  the best deal possible for your business.

Read on to find out more way you can ensure a good deal for your business as well as how you can protect your future commercial real estate ventures.

 

Negotiate Early…It Only Makes Sense

 

When considering a commercial real estate lease renewal, it is always best to be proactive. Evaluate your situation, determine what is and is not working for your business, and communicate with your landlord 9-12 months before your lease agreement expires. Your landlord will consider these points while reviewing your renewal and will be well aware that time is on your side – time for you to look for a new space if your concerns are not fairly considered.

In the event that you don’t have time, I’ve got you covered.  What I just described is the best-case scenario, however, I have closed Class A office space deals within the span of a business week so I know it can be done.  If you have a tenant representation broker who is “Johhny on the spot” and is as “quick as lightning”, then you’ve got a great teammate fighting for you.  That kind of broker will alert the landlord upfront that “time is of the essence” and the deal needs to close fast.  If the landlord is on board, you’ve got a great situation in front of you and even greater representation behind you.

 

What’s Going On With Your Current Space?

 

Before making any sudden decisions, take the time to analyze how your business is performing in its current commercial space. This is an opportunity to determine if the space is still suitable for your company and its future growth. Items to consider are location, amenities for employees, office configurations, and tech-enabled infrastructure. These can all serve as discussion points in the negotiation of your renewal. There is a possibility that your current landlord may incur these costs if it means keeping your company as a tenant.  When you determine these factors, you can really increase your market knowledge which will facilitate an opportunity for you to have more leverage in negotiation.

 

Understand the Market Conditions

 

The commercial real estate market is dynamic, resulting in continuous changes year after year. It is important to be up-to-date on the current state of the market when looking to sign a new commercial lease or renew your current lease. Look at the market around you; are the rents similar to what you are currently paying for space? Are there other properties that offer additional benefits? Having this knowledge gives you the ability to be well informed while negotiating your current lease. If there is the potential to have some of these added benefits, lease renewal is the time to present them to your landlord.

Once you are more knowledgeable about the current market conditions, ask your tenant representative to negotiate an option or two for you.  The market changes every year so it would best serve you to lock in a good rate for as long as you can.  If it costs too many dollars for the same thing you had last year, it doesn’t make sense.  Don’t you agree?

 

Research Alternative Options

 

Even if you are comfortable in your current commercial space, it is always beneficial to educate yourself on other buildings and owners in the market. You may determine an opportunity that is a better fit for your company. Availabilities, rental rates, and amenities have probably changed since you were last in the market, so it is worth the time to look at your options. During your research, you will become more knowledgeable about the commercial real estate market. Whether you stay in your current space or sign another commercial lease, this information can benefit your negotiation process.

 

Work with a Commercial Real Estate Broker to Negotiate

 

Do not underestimate the importance of using a broker to help you negotiate your commercial real estate lease renewals. In addition to sharing their market expertise, tenant representation brokers are always aware of the current market conditions, opportunities, owners, and other brokers. They provide you with leverage to get the incentives that you and your business deserve and have a genuine interest in seeing you win.  Tenant reps know how important the right office space is for your business. An experienced broker can add value to your commercial lease renewal process, negotiate any required terms, and answer any lease related questions.

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Looking to Move Your Office? Leave it to the Professionals

Looking To Move Your Office?

 

You are a successful business owner and everything is booming in your world. 

Your current location has been good to you but your client base has grown dramatically.  The past few years have afforded you a great proof of concept but you know you could offer your clients more.  You know you need a new atmosphere and better location to best serve your clients.  Where do you start?  How do you accomplish that?

It sounds like you a need a tenant representation broker.  A broker will find you a great new space and negotiate you a killer deal.  That sounds simple enough, right?  Let’s delve in a little deeper.  Read on for your “no-cost-to-YOU” solution for getting a better space.

 

#1: YOU are the first priority

 

A tenant rep will have great relationships with many landlords and listing brokers.  As a result, this will lead to a smooth transaction for you.  Tenant representation brokers work on your behalf.  They have no obligation to landlords or the buildings they present. It is their legal, fiduciary responsibility to you to evaluate buildings, locations, and leases without any bias.  Additionally, they will not promote one building over another. Tenant representatives will work to position your deal in the marketplace.  They will also leverage the best possible transaction both qualitatively and quantitatively.  They will help your bottom line.

 

 

#2: Evaluating commercial real estate is a full-time career

 

In order to accurately identify lease opportunities, significant time and work goes into the process.  This is time that you, like many professionals, don’t have to spare. Tenant representation brokers will determine your unique office needs and engage the market.  They will analyze all alternatives and negotiate terms.  Ultimately, they will find you an office space that meets your business needs. This process will ensure that you make the proper real estate decisions while paying attention to your operations.

 

#3: We focus on what we know so you can focus on what you do

 

Rather than taking time to educate yourself on the commercial real estate market, a tenant representation broker will do that for you.  They can manage everything from needs assessments, parking requirements, zoning restrictions, and as well as establishing timelines and the lease execution. The decisions you make now will impact the efficiency, productivity, and profit of your organization.  A tenant representation broker is sensitive to that.

#4: Tenant reps help you to determine what’s best

 

Defining and analyzing your business objectives will help you determine what you need in your office space.  A tenant representative will apply consideration to your budget and future growth. Do your projections include expansion?  Do your employees need to be near public transit?  Do you need all offices on glass?  Is walkability a major factor for your business model?  A tenant representation broker will know all of the right questions to ask.  This will help to determine the right commercial space for you.

 

#5: Tenant representatives have numerous resources…seriously

 

Searching for new space on your own can be frustrating. It is difficult to get an accurate idea of what’s available in the commercial real estate market.  Many websites that have out-of-date or incomplete information.  It may even be hard to get a listing broker to call you back!   A tenant representative will have the most inclusive list of commercial real estate options in the market. Tenant reps have access to exclusive commercial real estate databases, industry relationships and knowledge of off-market options.  This enables tenant reps to give you a variety of quality options that may not be possible to acquire on your own.  If you don’t believe me, try calling a few numbers on the “For Lease” signs and see how things go.  You’ll see that I’m right!

 

#6: Tenant Representatives will handle negotiations

 

Going through the negotiation process can be overwhelming.  Having a tenant representative who knows the market and is exclusively representing your interests is important. They understand the need to capitalize on timing and market conditions.  They will apply negotiation techniques to create the most leverage on your behalf. This will help you receive the best lease terms possible without the stress of negotiating alone.  Lastly, they know the tricks of the trade which will help you.

For instance, if the market price for milk is $3.06 per gallon, you will pay $3.06 for that gallon of milk from the grocery store.  If you are a vendor, you could go directly to that distributor and negotiate a much lower price point.  As a vendor, you have more negotiation power.  Distributors deal with vendors.  HMOs deal with doctors.  Landlords deal with tenant representation brokers.  It’s as simple as that.  Landlords will always negotiate with tenant representation brokers on your behalf.  They do so because they trust the tenant rep to qualify their client before bringing them to the space.  This saves the landlord a time by not having to qualify the prospective tenant upfront.

Tenant representatives can get you a ton of other incentives.  Some include free rent and a break on the rental rate.  They may even be able to get you more concessions!

 

How Much Is It Going to Cost Me?

On a final note, remember when I said you can get your space at no cost to you?  Let me clarify!  Tenant representation services are free because the landlord pays your representation for you.  I know that sounds super crazy but that IS how this crazy thing works.  The landlord sets aside a budget for representation when he/she acquires a commercial property.  Whatever that budget is, is typically split down the middle.  Half goes to the landlord’s representation and the other half goes to the tenant’s representation.

Why would a landlord do such a thing, you ask?  A landlord is willing to pay a tenant rep’s commission because he/she feels confident that they are bringing a viable tenant to their establishment.  They are willing to pay for that.  I know it’s weird and I don’t make the rules…I just play by them.  If you are looking for office space, I’m more than happy to point you in the right direction.  I hope you found this helpful!

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Commercial Real Estate Conflict – A Real Hurdle for Consideration

Commercial Real Estate Conflict - It's Real

 

Resist the Urge

 

You are driving in your car and you see a  “For Lease” sign on the building. You happen to be in the market for space and you want to call for more information.  Logically, that makes the most sense, however, the phone number you see is for the building owner’s representation.  If you do not have your own representation, the situation can quickly become unfavorable for you.  You are one of the lucky ones if you DO know you are dealing with the competition but, unfortunately, many business owners aren’t even aware of the conflict in the first place.  They simply see a desirable building and call the number none the wiser.  Resist the urge to call the number on the “For Lease” sign.  Instead, take down the number and the broker’s information and give it to you tenant representation broker.

 

This is when the tenant representative rides in on the white horse and forsakes all landlord allegiances to represent only the tenant in commercial real estate transaction. Tenant representation has taken root in corporate America, where space users seek out tenant-only brokers and tenant-only brokerage firms have grown in response to this demand.

 

Get Exclusive

 

Tenant representation brokers are commercial real estate brokers who work exclusively for the tenant and never represent the landlord.  The tenant representative role developed in response to the conflicts of interest that were, and still sometimes are, rife in the industry. They are now a universally embraced, specialized sector of commercial brokerage, with a broader range of services focused on the unique needs of a tenant such as space planning, construction management, lease renewal consulting, site search, financial analysis and strategic negotiations.

 

Risk of Conflict

 

There is a very real risk of working with a broker who has blatant conflicts of interest.  It is in your best interest to be intentional when searching for a broker who only focuses on tenant representation.  In the old model, the landlords and their brokers held all the cards. The tenants were merely a means to an end. With the advent of tenant representation, the industry is waking up to the reality that the tenants actually hold all the cards, because the tenants pay the rent. In truth, landlords are utterly dependent on the rent tenants pay as their sole source of income.  Unfortunately, many tenants don’t realize they hold all the cards and have all of the power.  A good tenant representation broker will enlighten you on the leverage you actually do have.