Monthly Archives: April 2012

Search and Sign: Commercial Real Estate Resources for Further Reading

As you begin your search for commercial property to lease or purchase, consider adding a commercial real estate broker to your team. His or her market knowledge, property analysis, and negotiation experience can help you make an informed decision that complements your company’s goals. From searching for the right property to signing the lease agreement, here are some additional resources on leasing commercial property:

For companies expanding or opening new offices, the terms of their lease agreement can dictate the flexibility and growth potential of that office or business. This government guide to leasing commercial space provides tenants with more information about what should be included in your lease and what to know before you begin negotiations.
When you do enter into lease agreement negotiations, identify the core needs and requirements that you want included in the contract. This guide from Entrepreneur Magazine provides more guidance on how to negotiate a commercial lease, including hiring a commercial real estate broker.
When searching for commercial property, ask yourself a few essential questions to help you find the appropriate space: Should I buy or rent? Where are my customers, what can I afford, and does this space align with the company’s future goals? For more information about finding commercial space for rent, consult this legal guide to commercial property.

For more information about commercial real estate, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Posted in TENANT REPRESENTATION

Commercial Real Estate Strategies: Negotiating Your Commercial Lease

Apr 18

Posted by Tom Pappas

Are you preparing to sign or renew a commercial lease agreement? Even if you are resigning an existing lease, be prepared to negotiate with your landlord on the terms of your agreement. Negotiating a commercial lease agreement can help you to achieve more advantageous terms and increased flexibility, positioning you and your company for long-term success. Learn more about successful commercial lease negotiations in this podcast from a commercial real estate broker.

In the podcast episode from 12/4/2009, a commercial broker discusses a few smart strategies for negotiation. Begin by performing a close read of the lease itself and look for points of vulnerability or disadvantage. Your exit terms, for example, will detail when your lease expires, any holdover penalties, and your renewal options. A tenant representative can also perform a lease review to clarify and analyze the terms and conditions of your agreement, providing you with the necessary knowledge for more successful negotiations.

For more information about commercial lease reviews and agreements, please contact Tom Pappas. As managing director at Studley, Inc., Tom specializes in strategic planning within the Denver market and develops real estate strategies to help his clients make sound commercial real estate decisions. Visit us online or call Tom today at (720) 259-1809.

Posted in TENANT REPRESENTATION

Searching Solo: 5 Common Commercial Real Estate Mistakes

Apr 12

Posted by Tom Pappas

An essential component of your commercial property search can be working with a professional commercial real estate broker. From the initial research to the final negotiations, the commercial market can be fraught with uncertainty and complex choices if navigated without the right guidance. A tenant representative can provide you with expert analysis of market conditions, available properties, and deceptive lease agreements, working to get you the best results at the best value. Those who undertake the commercial property search themselves often make a few key errors, like those below, that can be more costly in the long run.

Strategic Errors: Does this property have potential for expansion? Is it in a location that will continue to grow and thrive? These considerations should influence commercial real estate decisions but can be often overlooked by those without the knowledge to answer. An experienced commercial real estate broker can help you locate the property that is most advantageous to your short-term goals and long-term success.
Lease Mistakes: Most tenants have little experience negotiating and signing a commercial lease agreement. Without knowledge of landlord practices and reasonable requests, tenants can end up signing expensive and restrictive leases. A tenant representative can work with you to identify your needs and wants, negotiate effectively with landlords, and advocate for the most beneficial lease terms. He or she can also perform a lease review to help you better understand the terms of your agreement.
Paperwork Oversights: Leasing or purchasing commercial property requires a great deal of the necessary paperwork, some of which may be overlooked or little understood. With the assistance of an expert on the commercial market and legal guidelines, tenants can file the right paperwork more efficiently and move into their new space in less time.
Landlord Conflicts: Dealing directly with a landlord can be problematic for tenants, particularly when it comes to lease agreements. Some landlords can be difficult to work with, refusing to negotiate, and tenants do not always have the experience or knowledge to challenge them.
Conflicts of Interest: Many commercial real estate firms represent landlords and developers, which means they benefit most when their clients benefit. To avoid a situation in which your interests are subordinate to those of landlords whose business a firm covets, work with a tenant representative. A tenant representative works exclusively with tenants, aligning his or her goals with your own and advocating for your interests over the landlord’s or interested firms’.

Posted in TENANT REPRESENTATION

4 Factors to Consider When Searching for Commercial Real Estate

Apr 6

Posted by Tom Pappas

To the uninitiated, commercial real estate listings can appear as little more than a list of names, numbers and schematics. To a professional commercial real estate broker, though, each of those listings tells a story about the space’s value, potential, and fit for your business or office. Talk to your broker and learn more about what to consider when searching for commercial real estate and office space.

Building Capacity: When viewing potential office spaces, ask yourself some basic questions about capacity: Is this property large enough to house your entire staff comfortably? Does the layout contribute to conducting business, or is it an impediment to efficient operations? If necessary, look at other offices and study how the space is used and how much is apportioned to each employee.
Potential for Future Expansion: Just as your business goals may evolve with time, your space may also need to grow with your vision. Consider whether a commercial property complements your short and long-term goals and if you will have the flexibility to adjust the space as needed.
Appearance: An office can be the heartbeat and soul of your entire enterprise. From corporate identity to office culture, the appearance and functionality of your office space can impact how employees and clients see you. If you are expecting a high volume of visitors, for instance, you may want to select a space in a prime location with high-end amenities to create a positive first impression.
Cost: One of the most significant considerations you will make when searching for commercial real estate is cost. Working with a commercial real estate broker can ensure that you are receiving accurate and timely market information as you make your decision. He or she can provide you with additional analysis about comparative rent, future property plans, and negotiating points to help you secure the most advantageous lease for your needs.