Office tenants searching for office space for lease or considering a lease renewal should tour competitive properties to research the market and enhance their negotiation position. For an effective tour, decision makers must attend – this is not a task that can be delegated to an office manager. Remember that you are seeking a long term relationship in the form of a lease. Take care to both form a good initial impression with your potential new landlord, while also making sure that you do not undermine the negotiation efforts of your tenant representation broker. The tips below will help ensure an efficient and productive tour of available office space for lease.
Tenants should be able to come up with list of ‘top 5’ properties they wish to tour. If you wish to tour more than 6 properties, then you break the tour into separate days. I have found that once tours drag on too long, tenants stop taking good notes and begin to lose focus.
On occasion, the leasing broker’s schedule cannot adjust to the tenant’s, and a tenant will tour a property without the leasing broker. This is usually a mistake. Leasing brokers tend to be some of the most knowledgeable people about a property and they can answer all of a tenant’s questions.
Make sure you understand why you are seeing the properties on your tour and not others – what makes these properties unique, how did your tenant representation broker pick these properties to tour? Once you understand the selection process, prepare questions to confirm the validity of the selection process. For example, if you are only touring properties with asking rents below $14/SF gross with 3,000 square feet available for lease in 3 months, ask each leasing broker to confirm that his property meets these requirements.
Keep a poker face. Once you find a compatible space, refrain from expressing your enthusiasm in either your actions or your words. Do not reveal any key information. Make it clear that you are looking at other properties, but don’t reveal which ones. When leasing brokers ask questions which may undermine your negotiation position, refer them to your tenant representation broker.
The tour gives you an opportunity to judge the building. Taking pictures may help you remember details. Check out the following as you walk the property:
– Condition and responsiveness of elevators;
– Condition and cleanliness of stairwells, restrooms; carpeting, walls, and lobby;
– Consistency of door numbering, tenant roster, signage;
– Determine the Availability and Quality of Parking.
– Vacancy in the property, remaining office space available for lease.
The tour also provides you with an opportunity to judge the leasing/management staff; they will play an important role in your business over the next several years if you sign a lease at the property. Take advantage of your face-to-face time with the property staff to both form and make an impression.
If you are touring the market, you should retain a tenant representation commercial real estate broker to help you decide which properties are the best fit and to guide you through the relocation/renewal process.
At Golden Group Real Estate, we specialize in tenant representation real estate services for office space users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.
For more on Golden Group Real Estate, read about our real estate services. Let us know if we can help you find office space for rent or buildings for sale. Call us at (630) 805-2463, email us at email@example.com, or enter your office space search criteria below.
June 19, 2019
The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs. We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.
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