May 4, 2016
Colliers in Austin is partnering with RealMassive to produce a blog series aimed at informing current and future tenants on the real estate search process and identifying ideal representation. While the process of sourcing, negotiating, and executing an office lease is often perceived as daunting, it is really quite simple when you recognize and understand opposing interests.
In short, property owners and landlords seek the highest rent possible for the longest leasing period possible. They need reduced risk and a low up-front capital expense for tenant acquisition in order to optimize NOI (Net Operating Income), and effectively increase total returns on a sale. Conversely, customers and tenants need to operate in a space which becomes an asset to their firm, culture, and customer experience. They hope to pay minimal rent or maximized concessions as determined by complicated financial models administered by their representative.
Understanding that this relationship is similar to marriage, most respective parties are frequently on opposite ends of the spectrum and enlist respective Tenant/Landlord brokers whose fiduciary obligation is to negotiate the best deal possible on their behalf. Competence, market knowledge, and expertise provided by Tenant brokers are more often than not the determining success factors as opposed to manicured marketing materials and basic market data, which are now generally accessible to anyone in the modern commercial real estate landscape.
To expedite the process and focus your search process, you may find it helpful to complete this evaluation. The assessment should provide a clearer vision of priorities and also help identify the type of representation that would best match your real estate needs.
This blog was guest authored by Doug Jones of Colliers – Austin.