Tenant Realty Advisors recently worked with a non-profit, Internet-based charter school that wanted to renew their lease under the best possible economic terms. They were willing to relocate only if there were compelling financial reasons. TRA met with the tenant to understand what worked and what didn’t work with their current location. Then we strategized with the client on how to best meet their goals for local office space. Their goals were straightforward: They wanted to reduce their current rent costs, but wanted to avoid the expense and inconvenience of moving. They also were hoping to refresh the existing space with new carpet and paint at their landlord’s expense.
How did we make this happen?
Since the basis of a good real estate decision starts with market knowledge, TRA surveyed the market to learn of any comparable rental locations in the desired area. The spaced needed to be workable in size and configuration. Even though the client did not desire to relocate, these spaces would serve as “Plan B.” After TRA completed a thorough and detailed survey, TRA and the client toured the properties which were deemed workable. TRA then requested proposals from the landlord’s brokers. This step accomplished two goals. One, it established that the client had a real “Plan B,” which was necessary for negotiation purposes, and two, it telegraphed to the market that the client was looking and was considering moving. TRA knew this information would get back to the existing landlord. TRA crafted a new lease agreement with the existing landlord. Rent was reduced from almost $15 per square foot to $12.50 per square foot, and the landlord paid for new carpeting and fresh paint, plus installed new lighting fixtures in several areas. With the reduction in rent and the cost of refreshing the space born by the landlord, the savings to the client was approximately 30%.
This case is great success story…
However, it required the proper mindset from the beginning. The client needed to be open to developing a “Plan B,” even if they didn’t intend to act on it. TRA needed to understand what the tenant wanted, and then needed to educate the tenant about what was happening in the market in surrounding office buildings, and what the landlord would probably want and be willing to do. TRA understood that the landlord had recently lost several tenants to a neighboring building, and didn’t want to lose another client. In retaining the tenant, the landlord would avoid the loss of income, the potentially larger cost of totally re-configuring the space for a new tenant, and the expense of marketing fees he would have paid to his leasing broker.
In the end, it was a win-win for both parties. The client was able to retain the refreshed space at a lower cost, and the landlord kept a great tenant in a tough market.
Tenant Realty Advisors is the only commercial real estate firm in the greater Boise area that works exclusively for tenants and buyers, so we have no conflict of interest issues resulting from representing the other side of the negotiation table.
The cost of tenant representation is built into the landlord’s fees – not yours – making TRA’s expertise a service that is free to you. As a non-conflicted advisor to the users of commercial space in Boise, Tenant Realty Advisors won’t ever attempt to influence your decision, regardless of which space you’re considering. We are not the salesman with an agenda; we are the unbiased council you can trust to ensure you find the best space possible.