Rich Commercial Realty

10880 Durant Road

tawnie — Wed, 01 May 2013 14:37:50 +0000

Location: 10880 Durant Road, Raleigh, NC

Rentable SF: 4,531 SF

Price Per SF: Negotiable

Lease Expiration: 11/30/2016

Availability: Immediate

Sublease Flyer

Tips for Renewing a Lease

tawnie — Thu, 25 Apr 2013 14:33:54 +0000

Before your company’s office lease expires, ask yourself, “Should we renew our lease?”

STOP! Don’t do anything yet. Did you know that on average 70% of tenants will renew their lease? If you are unhappy with your current space or your current lease terms, hire a tenant rep to guide you through the renewal process.

Here are five beneficial tips to follow in a lease renewal process:

1. Make sure you hire an experienced tenant broker. They are specialists and can help you negotiate better terms whether it is a new space or renewing your current space

2. Evaluate other options in the marketplace. Introducing new competition to your landlord will help you gain concessions in a renewal lease and will give you the option of relocating.

3. Begin the process early. It takes time to search the marketplace, find acceptable alternatives, and relocate should the renewal of the current space not be the most cost effective option.

4. Let the landlord make the first offer and then create a response. You want to know the landlord’s initial proposal first. Once you know the offer, then your tenant broker can create a response that addresses all of your needs in hopes of coming to a positive agreement somewhere in the middle.

5. Show no emotion. Just because your business has been in the same building for the last twenty years does not mean the landlord will give you a better lease than any other company. The landlord will lower terms if he or she knows that there is competition for your business.

Some other easy tips are to keep only the executive personnel in the loop about negotiating results, and do not talk directly to the landlord or the landlord’s representatives about the lease renewal. If necessary, politely direct the landlord to talk to your tenant broker.

By hiring a tenant representative, your company will save time, money, and headache in lease negotiations whether it is on a lease renewal or an entirely new space. This video will illustrate these and other points that will highlight in more detail the difference in representing yourself in a renewal versus using an experienced Tenant Rep broker.

Turnkey Build-out vs. TI Allowances

tawnie — Mon, 22 Apr 2013 14:21:06 +0000

In a lease, landlords and tenants will agree to certain improvements to spaces especially if the building is only an exterior shell. Landlords provide either turnkey build-outs with spaces with interior finishes or a tenant improvement allowance if a space is already retrofitted.

Turnkey build-outs are usually major enhancements to an area before a tenant moves-in. These allowances are paid by the landlord once both the landlord and tenant agree to certain changes. If the improvement cost is too high, the landlord may reject the proposal. If this occurs, a tenant can negotiate further, modify the plans, offer to pay for part of the improvements either up-front or through a higher rent. Longer lease terms often provide tenants with higher allowances and give the landlord more time to amortize the cost of the improvements.

On the other hand, tenant improvement allowances are landlord negotiated amounts stated in the lease that are used to customize an existing space for a tenant. This price is usually stated per square foot (for example $10/SF). These spaces normally already have interior walls, paint, electrical outlets, carpeting, and more; improvement credits allow the new tenant a substantial sum to renovate the space in a way that they choose, subject to landlord approval.

In a lease, TI allowances usually increase with the number of years and square footage stated. If you lease a 1,000 square foot office for five years your TI allowance will be lower than someone who is renting a 50,000 square foot office for ten years. For example, if a tenant was renting a 10,000 square foot office and the improvement allowance was $15/SF then the tenant already has $150,000 promised by the landlord to improve the space however they choose.

We can assist you with hiring an experienced interior designer or architect to help you design the best office layout with your turnkey or tenant improvement allowances. The best office layouts provide for maximum efficiency and increased productivity. Excellent layouts also include allowing open space for more collaborative environments.

These allowances are one of the most negotiated points in a lease. Your tenant broker will make sure you receive the best TI allowance and turnkey build-out possible.

Have a Lease Expiring in the Next 2 Years?

tawnie — Thu, 18 Apr 2013 14:05:44 +0000

Why are Tenant Brokers Necessary?

tawnie — Wed, 10 Apr 2013 19:53:48 +0000

Landlords have their own representation in a lease process, so why don’t you?

If you believe that you can find a step-by-step comprehensive guide on how to represent, negotiate, and finalize a commercial property lease by yourself all while getting the best deal-then good luck. Winning the lottery may be easier.

Even though we live in the age where everything imaginable is found by scouring the internet, little reliable information is available pertaining to commercial real estate. Plenty of tiny details about a property are closely guarded by a listing broker and cannot be found even by spending hundreds of hours combing through websites.

But…do not fret! Experienced tenant brokers carry knowledge about how to best work with certain listing brokers, landlords, properties, and through the overall real estate climate so you understand all the tiny details. For example, different challenges arise in each leasing process even if two identical office spaces are only separated by a parking lot. Looking for slight discrepancies in a lease, between two buildings, only comes with years of practice. Tenant brokers are quite beneficial when beginning the lengthy leasing process.

Once you decide to hire a tenant representative be sure to sign an exclusive representation agreement in order to get the most attention. An exclusive rep agreement guarantees the tenant broker a commission once a lease is signed and shows that you are serious about leasing. Also, a landlord believes that you are committed to looking at other properties if you have representation and he or she will be more likely to give concessions while negotiating a lease. If you do not sign an exclusive representation agreement, then you will not get priority in locating a commercial space from your tenant broker; ultimately the process will take much longer. The best part for you is that your broker’s fee is part of the transaction and is paid by the landlord.

The fastest and best way to keep your business heading in the right direction is to use an exclusive tenant representative. Check out this short video that illustrates other benefits of using a Tenant Rep broker.