In a Vacuum

Office leases are complicated undertakings comprised of many variables.? ?The markets offer a variety of solutions, ranging from coworking to subleases to long and short-term direct leases.? It’s always important for corporate leaders to understand the primary objectives they seek to achieve in leasing office space.? But even when these objectives are well defined, it can be tricky to assess which solution is best.

With so much data to analyze (rent, term, tenant improvements, operating expenses, location, amenities, ownership’s financial position, flexibility factors, etc.), tenants need guidance to help create perspective.? Providing our clients with a framework that facilitates the thorough analysis of these variables in the context of the alternatives is among the most vital aspects of our work.? It’s not enough to opine on the quality of an offer.? Yes, a broker should have an opinion, but it’s the data that matters.? The role of the broker is to aggregate data, provide proper analysis to generate key insights, and prescribe strategic actions, accordingly.?

Leasing is a process of discovery.? The right solution is discovered through an intentional process that identifies options, extracts value from each through rounds of negotiation, and, finally, compares each based on quantitative and qualitative factors.?

It’s impossible to craft the right leasing solution in a vacuum.? Singular focus on one building, for example, will never yield the best outcome.? Yes, analysis for the sake of analysis leads to paralysis.? But disciplined analysis of each leasing scenario based on how well it achieves key project objectives as compared to all other available and relevant leasing options leads to great outcomes.?

Ask TenantSee Weekly

With rents at historical lows, should we negotiate for a long-term lease?? The idea of locking in a favorable rent expense for the long-term can be appealing, but it’s typically not that simple.? Tenants must consider a broader set of variables before determining whether to seek a short, mid, or long-term lease solution.? Long-term leases, even those with built-in flexibility factors, like expansion and contraction options, can be difficult to align with changing business needs.? Being stuck in a long-term lease that no longer serves the business, no matter how favorable its rental economics, may turn out to be an expensive mistake.? ?????