Leasing or buying commercial space is a time consuming and complex process, consisting of many interrelated variables. Whether you overpay for commercial space or are able to negotiate below-market pricing and favorable terms depends on your preparation and understanding of the nuances of the leasing or buying process and your choice of advisors. Savvy business and medical people wishing to make fully-informed real estate decisions seek guidance from an independent commercial real estate advisor who specializes in tenant and buyer representation.
I focus exclusively on representing, and protecting the rights of, business owners, healthcare providers, corporations, municipalities, and investors in commercial real estate transactions and, since 1984, have advised over 2700 Clients. The representation process has three distinct phases, namely:
Phase 1: IDENTIFICATION of available properties.
I begin every assignment by personally conducting a ‘hard target search’ of the marketplace for every space that fits your businesses needs and budget, regardless of which broker advertises or ‘lists’ them. I prepare comprehensive research reports for my Clients which include location maps, photographs and details about sizes and rates/prices.
Phase 2: ELIMINATION of the least desirable spaces or properties.
My Clients review the reports and select those properties they would like to access. I personally conduct guided tours of these spaces or properties to ensure the benefits and drawbacks of each property are understood. We then narrow the field to the most suitable choices and I begin initial negotiations with property owners or their brokers, during which I am generally able to identify which landlords or sellers have the most urgent needs. While this process is time-consuming it is essential preparation to negotiating ‘below market’ deals with the greatest concessions possible.
Phase 3: NEGOTIATION on the most suitable choices.
Armed with multiple choices and knowledge of which landlords or sellers have the greatest needs, I am now prepared to negotiate the most favorable terms, conditions, and concessions possible for my Clients.
My Clients prioritize their choices and I prepare non-binding Letters of Intent on each which I deliver, in sequence, to the various property owners or their brokers.
Each Letter of Intent proposes rates, terms, conditions, concessions, warranties, and the like. If we cannot come to terms in a reasonable period on Choice #1, we turn our attention to Choice #2, and so on until we have achieved the most favorable deal on the best property.
In effect, I become my clients ‘in-house’ contact for real estate matters, ensuring that their businesses circumstances and strategies remain confidential and they receive every financial consideration they are entitled to.
What’s the cost?
Nada. Zilch. Zero. Nothing. That’s because most commercial real estate leases and sales generate commissions that are typically shared between the agents or licensed advisors representing each party. While I generally work on a contingency basis (i.e., sharing commissions with listing agents) I also can be compensated on an hourly basis, by a flat fee, or a retainer arrangement. In those instances where I am paid a retainer or fee and subsequently collect a commission on the same transaction, I refund the retainer or fee on a dollar-per-dollar basis.
So, stick to your core business and rely on Steve Cross, The Tenant’s and Buyer’s Advocate, to take the headaches out of your commercial leasing and buying projects!