On any job or project you want your most trusted people on your team. This couldn’t be even more true when you are talking about the 2nd biggest expense for your company. We’re talking about your Corporate Real Estate (CRE).
Maybe you are the Director of CRE, or maybe CRE is your 2nd or 3rd job for the enterprise. Either way, costs are under the microscope. Double this scrutiny in a recession.
As Tenant Reps, we have seen how much our corporate clients can benefit by saving time. For CFOs, Directors of Real Estate, Human Resources professionals, etc -there’s not enough time in the day. What can you do to save yourself time (and money)?
Work with a Tenant Representative.
Look- No one can do your job better than you. We are here to empower you to do your job by alleviating the weight of CRE responsibilities on your time.
Consider what the military does when they have an important mission: They send in an elite Special Forces team. If your project is important enough… and it is- no question, you can adopt the same strategy.
Instead of using goliath, landlord-leaning real estate brokers, our clients prefer to have us as their ad hoc (Special Forces) real estate team. We have over three decades of experience solely representing corporate tenants When you need us, we are on call to provide solutions for no matter what is causing strain on your CRE portfolio.
Sound good? We’ll show you how.
And because your time is so valuable, we’ll keep it short and sweet. We’ve broken the sections of this article up so you only have to ready the portion that applies to your concerns.
If You Don't Have a CRE Department
If You Don't Have a CRE Department
Un-conflicted Service
Bottom line- you need to know that your team has your best interest in mind. Tenant Reps only represent tenants. This differs from traditional brokerage firms that work for tenants and landlords. If you’re wondering how this could be done fairly, you’re not alone.
When brokers represent tenants and landlords, it is the CRE equivalent of a lawyer fighting for both sides in a courtroom. Uh yeah, that wouldn't work for anyone but them. That’s why it’s not legal. However, there are plenty of commercial real estate firms that do.
Starting a relationship with a true Tenant Rep backs you with a trustworthy expert and ensures that you’re not lost to the void of real estate deals and landlords.
Let’s take a closer look at what this will mean for you based on your company.
If You Have a CRE Department
When you have more properties, leaving money on the table is easier. Small price gauges on each lease quickly add up, draining your budget of millions.
You need to know that your broker or rep is working to get you the bests terms and savings on every property.
You have a real estate team, but unfortunately, their abilities will be stunted when working with brokers that also represent landlords. When they have allegiance to a network of property owners, those properties will be the ones you are shown.
On the other hand, when working with a true Tenant Rep, their fiduciary is only to you. They are not limited to landlords they already work with. As a result, you will be shown 3-4 times the amount of viable commercial spaces.
This means that not only will you see better properties, but the terms on your final lease will be in your best interest because true tenant reps can drive tougher negotiations.
They will also go through an unbiased analysis of your portfolio that will show you the critical areas of improvement (a traditional broker may not point out).
If You Don't Have a CRE Department
Traditional real estate brokers will promise you the world. But, the delivery? Well, that’s another thing.
They are limited to their own networks of landlords. As a result, you will likely not be shown the properties that fully match your needs. And the terms they’ll draft on your new lease? Good luck.
You need a partner that only has your back. This is especially true if real estate is not your only responsibility. You have a lot of things to worry about already. Why would you want to match yourself with a partner of questionable allegiance? That decision can cost you millions in dangerous lease clauses.
Level the playing field. Don’t put yourself up against sophisticated lawyers and their expert brokers and lawyers (or the brokerage firms that represent them).
Due-Diligence
Much legwork is demanded to ensure that your company’s second top cost (CRE) benefits your budget. There are far too many snags you can catch yourself on or factors you could potentially miss entirely if you handle it on your own.
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There is often not enough time in the day for most professionals to handle their CRE and the other responsibilities of their jobs. |
An ad hoc partner could come in extremely handy at this point. Whether you need assistance in the initial stages of market research or overhauling your entire portfolio- a Tenant Rep is an asset that will give you the freedom to do your job the best way you can.
If You Have a CRE Department
If you have 40/ 50+ properties, there could be seemingly innumerable factors to keep up with. Unfortunately, as your portfolio grows, it becomes exponentially more challenging to keep up with:
- Key Dates
- Options
- Renewals
- Touring/pre-touring
- Cross-national locations
There will also be more turnover and areas where you should renegotiate. Even if your department does keep track of when leases are expiring, etc., are they constantly analyzing the market value of rent in their geographic areas? You have the power to potentially reset your rents to market value. Resetting multiple rents will bring incredible savings (that add up quickly).
But who’s going to negotiate on your behalf of all those properties?
What about the space utilization of each of those 50 properties. Could any of them be improved? Again, the chances are that the answer is yes, and right-sizing to optimize your space utilization could dramatically reduce your CRE overhead.
Or- if you’re looking for new commercial space, how will you find and sort through the hundreds of viable options?
You’re going to need support in market analysis, undergoing negotiations properly, and isolating the solution that will work best for you. This is especially true if your properties span the entire country.
Luckily, Tenant Reps handle everything from lease terms, negotiations with landlords, and market research to save you critical time. In addition, they can manage individual real estate transactions (where you need an additional boost) or your entire portfolio. And they can do this all while making sure you’re not overspending.
If You Don't Have a CRE Department
If real estate is your second, third or fourth job, you’ve likely been thrown into unknown territory. There are innumerable factors you have to familiarize yourself with… and fast.
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You could also argue that the weight of specific real estate choices is more significant when you don’t have as many properties. |
Unfortunately, there is also more room for error.
So, if you have under 15/20 locations, the spotlight will be on you and your individual choices more (because they are the only choices to analyze!)
As a result, you need to know that the properties you’re considering are actually the best ones. If you don’t do the due diligence, you don’t want someone to bring up a property you missed as the project is en route.
Unfortunately, juggling all the details of managing your commercial real estate can be impossible when it is not your only (or primary) responsibility. In this case, having an ad hoc real estate department is more important. For example, consider all the work that must be done to find the optimal deal:
- Contacting property listings
- Considerations for the pre-touring stage
- Culling down list of appropriate properties
- Following up on tours
- Sending out Requests for Proposals
- Analyzing landlord’s proposals and revising draft
- Drafting and sending out Letter of Intent (LOI)
- Conducting Net Present Value (NPV) analysis for prospective leases
- Back and forth negotiations with landlord
You can offload part or all of your CRE duties to a trusted and knowledgeable party. Tenant reps know all the areas to look within your leases to ensure that they match your company’s needs. This due diligence allows them to get into the weeds of 80+ page complex documents.
Not only this, but they can aid you in the property search, managing essential dates, and negotiating (and renegotiating) with landlords.
This skilled service will not only save you 90% of your time, but streamlining your CRE will also generate millions in savings.
How You Can Benefit From an Ad Hoc CRE Department
At the end of the day, you have a lot on your plate. Working with a Tenant Rep can lighten your load while also giving you the peace of mind that your portfolio isn’t draining your budget.
There isn’t any more time to waste- but you already know this. No matter your position, time is a finite resource, and you have a lot to deal with. So make your real estate more efficient by working with a Tenant Rep.
At iOptimize Realty®, we are Tenant Reps with over three decades of experience. What does this mean? We have seen it all when it comes to commercial real estate. Our team is robust, efficient, and passionate about saving our corporate clients time and money.
Essentially, the time and money we save empower you to do your job to the best of your ability. So no matter if you have a real estate department or not, Tenant Reps are here to help.
Want to learn more about Tenant Reps? We don’t blame you. Learn more about how Tenant Reps can save you money and time.
Ready to work with a Tenant Rep at iOptimize®? Talk to one today!
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