1. Why would I need Tenant Representation?
(a) To have an advocate on your side who can provide comprehensive market information. (b) To have a seasoned professional with hundreds of transactions of negotiating experience. (c) To save time by not having to search the market looking for space. (d) To streamline the process by having a single point of contact.
2. Why Compass?
We are set apart from other service providers because of our depth of experience and unbiased approach. Compass Real Estate Advisors represents tenants. Unlike other real estate companies, we don’t seek to represent landlords and we don’t own or develop commercial property. Accordingly, your financial and business goals are our focus. We seek to aggressively negotiate lease terms and to maximize financial savings for you, the tenant.
3. What are common mistakes tenants make in lease negotiations?
• Going it alone without much lease transaction experience. The landlord and landlord’s agent are in the business of structuring a lease agreement heavily in their favor. How would you know terms are favorable to the tenant without a vital understanding of the market and ample leasing experience?
• Waiting too long to start the process. The longer a tenant waits to start the process, the more difficult it becomes to determine all options that are available to them. Alternatives in the market provide leverage, but only if adequate time is allowed for the due diligence necessary to develop a detailed comparison and evaluation of all the options.
• Failing to leverage alternatives. Some tenants will gather information on alternative properties and then only engage one landlord in negotiations. Once a thorough search and analysis of the market identifies competition, the process needs to go further with 2 or more property owners actually competing for your business. This takes extra time, but that’s why we get started earlier.
• Misunderstanding the true space costs. Unforeseen costs of leasing space are often tucked in the body of the lease agreement. HVAC repairs, utilities, maintenance, improvements, ADA and other pass-through expenses can be discovered long after signing a lease, when it’s too late.
• Treating a renewal like a renewal. Renewing a lease is frequently approached by tenants with little effort and consideration. Every lease renewal should be approached like a brand new lease with diligent market research and evaluation to create a competitive environment. The renewal is the Landlord’s opportunity to maximize their return on investment. It’s also the opportunity for the tenant to recognize the significant cost to their landlord if they move. But this leverage point only becomes useful if there are legitimate relocation alternatives engaged to compete for your tenancy.
4. How is Compass paid?
You don't pay us anything for our services. Typically, the landlord pays their real estate agent a commission and the agent will split that fee with Compass.
5. We don't want to move. We would rather renew our lease. How can Compass help?
In most cases, a landlord will have a professional leasing agent representing them. Their job is to maximize financial benefits for the landlord. The renewal is their best opportunity to do so because they know most tenants do not like to move unless they have to.
In negotiating a renewal, the key is putting together a competitive environment of other property owners to bargain for your tenancy. Compass provides the market research and negotiating experience to create this competitive environment. This more than evens the playing field with the current landlord and yields the most beneficial financial terms for the tenant. And, we do all of the leg work, saving you significant time in the renewal process.
Throughout the process, our professionalism will help you maintain a good business relationship with your landlord.
6. How much time do we need?
Taking the right steps in negotiating a lease requires a certain amount of diligence. Depending on the size and complexity of your office space requirement you should allow, at a minimum, the following lead times to negotiate your office lease:
office size lead time
1,000 - 3,000 square feet: 4 to 6 months
3,000 - 10,000 square feet: 6 to 10 months
10,000 - 20,000 square feet: 8 months to one year
above 20,000 square feet: up to two years in advance
7. How much space should we lease?
Usually, two hundred to two hundred and fifty square feet per person. However, this amount can vary, and it is important to prepare a space plan program. Professional space planning services are available at no cost to the tenant.
8. How do I get started?
Call us at 615-403-1332 to get started. We’ll help you determine your space needs, review market conditions and we’ll obtain a list of available properties which fit your parameters.