5 Ways A Facility Occupier Specialist Will Save You Time And Money

"The greatest inspiration is often born of desperation"- Comer Cotrell -

Getting a seasoned Facility Occupier Specialist involved early will pay huge dividends.

We are experts at leveling the playing field and provide expertise so you can concentrate on your core business.

Get started as early as possible in order to maximize realized savings .

What benefit does a Facility Occupier Specialist bring to the table? We bring a broad spectrum of services to the table. It's not as simple as just showing buildings. There is a wide array of knowledge necessary for every aspect of the transaction. This includes accurate and up-to-date market information, construction familiarity and a detailed knowledge of lease documents. A seasoned pro will provide a comprehensive financial analysis that allows their clients to compare alternatives on an 'apples to apples' basis. We reduce occupancy costs, increase profitability, mitigate lease risks and minimize time invested.

We make sure companies gain leverage during the negotiation process? It is critical to have as much leverage as possible. When conducting real estate negotiations we gain leverage through a number of factors. including using market comparable's, knowing what other deals the landlord has done, what the market dictates, what the landlord acquired the building for, upcoming lease expiration's, if the owner has any intentions on selling the building, creating competition among the various players. All of these factors affect a lease renewal or relocation. We utilize this information to gain leverage with a landlord.

At what point should a company contact an Occupier Specialist? The lead time necessary is dependent on the size of the required space. Larger tenants should engage a Facility Specialist several years prior to lease expiration so new construction can be considered. Smaller tenants should get started at least 12 to 18 months prior to a lease renewal for several reasons. 1. The lease renewal/relocation process, when done properly, simply takes that much time. 2. More importantly, in order to properly assess all of a client's options its imperative to review, explore and negotiate any relocation options before a tenant hits renewal option dates which is typically 6 to 12 months prior to lease expiration.

What types of cost savings can be realized by utilizing a Facility Occupier Specialist? There are two types of savings, quantitative and qualitative. Quantitative savings include how much you lowered the rent, how much the construction allowance was increased, and how much free rent a tenant received among other things. Perhaps even more significant and where a pro will drive value are the qualitative items, which are more difficult to measure. That's where you really see the benefit of having a strong Facility Occupier Specialist on your side. Items in leases like renewal option language, operating expense caps and exclusions, termination and expansion options, core and shell definitions, subletting rights and code compliance are hard to quantify upfront because you can't associate a dollar value to them. But over a 3, 5 or 10 year term you are certainly going to have to reference the lease for certain items. Qualitative items often provide the biggest benefit in the long run.

What questions should be asked of the prospective Facility Occupier Specialist? First, make sure they have adequate experience with similar types of tenants and transactions in the market. Secondly, ask specifically how they are going to save you money. How are you going to reduce occupancy costs and increase profitability. What do they know about your building and landlord? Every good Tenant Specialist should think from the landlords' perspective. What keeps them up at night? What specific issues are they having in the building? Are there other tenants with leases expiring in the near future? Are there tenants moving out?

Certainly in this uncertain time of Covid-19 there is upheaval, turmoil and confusion going on from both the landlord and tenant perspectives!

Please contact me to schedule a time to discuss your facility needs.

Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document.

My focused specialty is solely driven to advocate the office and industrial facility needs of Southern California based corporations and professional services firms in leasing and purchasing negotiations of all types including: renewals, re-locations, re-negotiations, re-casting, subleasing, terminations and owner/user investments on a local, regional, national and international basis

Regards,

Mark