How To Negotiate the Improvement Allowance

How To Negotiate the Improvement Allowance

The build process of an commercial real estate development can always be a very tedious task. maintaining control of this process will greatly allow you to enjoy your new Monroe office space than if you were to let the potential development to becoming wildly unstructured. Adding in a tenant improvement allowance inside your lease agreement is a very key component of the leasing process. When looking to redo the space that you have in your new office, there are two ways that the improvement allowances could be completed:

1). Turn Key Build-Out

2). Stated Dollar Amount

In the turn key build-out, the landlord will take on all of the monetary items necessary for the build out. The Monroe office expenses would not be your responsibility and you will be just an onlooker during the construction process. The stated dollar amount option though will allow the landlord to state that they will pay x amount of dollars in order for the construction to occur. This normally is a set number to cover any architectural and engineering fee that may be incurred during the daunting process. During the lease agreement though, many tenant representatives will strive to opt for a turn key build-out as that would limit any, if not all, of the out of pocket expenses for the new tenant. Saving on the bottom line of the Monroe Office is obviously top priority for the tenant representative as no one wants to pay any additional money for the space that is being rented.

There are a good amount of issues with the turn-key approach though as their may be additional areas of the renovation that are cut due to higher cost. The tenant does not have much say in the turn-key approach and may have a good amount of their needs left unsatisfied. It is a give an take at the end of the day as you can save a large sum of money, but at the same time you may not get precisely what it is that you want.

Two major factors that many Monroe office representatives may want to keep in the back of their mind are:

1). Maintain Quality Control of the entire Build-Out Process

2). Look for the best fit for your construction as the bidding process begins

First and foremost, you must maintain the build-out process to remain on schedule, within budget and completed by a time that you find ideal. Working a tenant improvement in to the lease is not the easiest of tasks, and having the right tenant representative can make all of the difference. Before you sign the lease though, make sure that your potential needs are met as far as construction occurs, otherwise you will be looking at a long office contract that may not be negotiable.

What Can A Monroe Tenant Rep Do For You?

What Can A Monroe Tenant Rep Do For You?

Hiring a commercial tenant representative can be the best task that you can do when looking to move from on commercial location to another. Tenant reps are easy to come by, but finding the right commercial real estate agent takes time and know how. But when you find the right one that you are looking for, what can you expect? The main thing that should be on the top of your mind when making this commercial real estate decision is information.

Information is key in 2014 and finding the right tenant rep can make or break your move. In comparison to a traditional residential real estate agent, commercial agents use multiple databases to gather information including, LoopNet, CityFeet, CommercialSource, Xceligent, Costar and many more. Whether you are looking to buy or lease a property, these sites can help to start the search process, but seeing the in depth information will take a trusted tenant representative. Residential agents just have to look on the mls, but with multiple sites to dive in to the information even deeper, the process can get a little overwhelming. Knowing just where to find all of the information and how to discover just what the client needs while doing this can be the bigger challenge. On top of this, seeing a property for yourself on the internet may not show the entire story as it more than likely could be displaying outdated information.

Finding a property for sale is not that difficult as driving down the road and looking for commercial real estate signs is an easy task. Once the leasing agent is on the other end of the phone though, do you know what questions to ask, or how to compare their rental quote to others? Some of the properties may be full service while others could be plus electric. Some commercial offices offer flexibility to the lease agreement. Comparisons must be made as this is your company that you are putting on the line. In order to make the best decision you must know all of the information at hand, but furthermore, you must know what that information means.

All of this factors in to what you can expect from a Monroe Tenant Representative, but at the end of the day, the information and expertise are what will really enhance your commercial experience. Finding a property to lease or purchase is simple, but the steps that come after that are the part that will make you glad that you found the right Monroe Commercial Real Estate agent!

Add Flexibility Into Your Next Monroe Office Lease

Add Flexibility Into Your Next Monroe Office Lease

When looking in to a lease agreement, long-term leases tend to rule the Monroe office space. 3-15 years is typically the normal amount you can expect, while thinking of your actual business beyond a 2-3 year span can make for a little hectic of a time. Determining future space requirements when you sign a long term agreement may not be the easiest thing to do, especially if you are in the beginning stages of your business ownership.

Why Are Short-Term Leases Harder To Obtain?

To answer this question in the easiest sense, obtaining a return on investment for the building is the main concern of any building owner or property management company. Locking down cash flow for the next few years will allow assets to come in as tenants come and go and maintenance needs updating. Also, a large amount of upfront capital needs to be invested in the building which can skew the bottom line. Leasing commissions, payment for owning the building, mortgages, etc all play a factor in how long the lease agreements are. At the end of the day, Monroe offices are looking to make back the income that they put in to the property. Working with the right Monroe commercial real estate agent can make all of the difference when signing this contracts as well.

On the other hand though, the tenant may want to lock in that particular rate in order to save in the near future as the cost of living rises. With our current economy, Monroe commercial real estate has seen it's ups and downs recently, and locking in a longer lease may actually be the best option to know exactly what it is you will be paying over the next few years. Even though longer leases are typically seen as a bad thing in the industry, it may benefit the tenant just as much as the property owner.

How To Create A Flexible Lease In Your Monroe Office

Since we dove in to the fact that short term leases are harder to come by, we do have a few work-arounds for when you sign that longer agreement to make your life a little less stressful.

• Add a Renewal Option
• Structure A Sublet Provision
• Add In A Termination Agreement
• Ask For A Right of First Offer for other Spaces to Upgrade to in the Building
• Add Alternative Work Strategies
  • 24 Hour Entrance
  • Free Parking
  • Allowance of Tenant Improvement

These are obviously just a few ways that you can create a little bit more flexibility in your lease. Taking a lease from a 15 year down to a 2 year may not be that easily done, but adding some extra items in your contract of your next Monroe Office is that simple. Look over the lease agreement before signing and see if there is any information that you would like to add to make your time in the office more enjoyable. At the end of the day, this is where you will be spending 40+ hours, 52 weeks a year and it needs to be able to suit you today, tomorrow and the near future.

Does Your Monroe Commercial Real Estate Adviser Work Solely With You?

Does Your Monroe Commercial Real Estate Adviser Work Solely With You?

Finding a Monroe commercial real estate adviser in 2014 is not that hard of a task, but finding one that can tend to your needs when you are looking for information can be the tricky part. The top tenant advisers that you would like to work with are much more than just a one time broker. They work with you between each transaction and answer questions as an ongoing representative to your business.

What can you do if your current Monroe Commercial Real Estate broker works with multiple landlords or is working for a full-service company? First off, you may have chosen the wrong commercial real estate agent to begin with. By providing a full service to multiple clients you are actually becoming hindered from their job. Will your information be confidential with other potential landlords on their client roster? Will the other landlord clients change the way that your real estate representative works with you? At the end of the day you need to sit down and think, will my relationship with my ideal commercial real estate agent have any issues based on their current business?

Your company should be your top priority and it's status inside the full-service commercial business should be thought of first. If new accounts are taken on, how will your current level of service be effected? Will their rate of completed projects diminish with the new clients? If you have an issue with your current landlord and try to get a hold of your Monroe commercial real estate agent, how long will it take them to contact you back? When looking at all of your options remember that trust is a high key factor to place on the line. Without a pre-built relationship that includes the trust and know how to complete every task asked for, the end result will be a complete waste of your time and money. With all of this said, return on investment is always key, and having a broker/ adviser that can answer questions, help fix problems and be there when needed is a must have in any business.

When you are looking at who you would like to begin that commercial real estate partnership with, it is important to keep it professional with an eye on the bottom line. Real Estate can hinder that bottom line very easily and you want to make sure that all of your items are aligned before any documents are signed. Look around at multiple Monroe commercial real estate agents before you sign to begin that relationship the right way.

My Ideal Monroe Commercial Real Estate Referral

My Ideal Monroe Commercial Real Estate Referral

As a real estate agent who has been working in the industry for as long as I have, a good portion of my business comes from previous referrals from clients I helped out. Past clients, networking groups and of course some times from different real estate agents will send me their clients they cannot work with for whatever reason as I am a sought after commercial real estate agent in Monroe. The ideal part about a referral is that competition is low and the client already trust me as a talented and experienced agent due to their potential agent sending them my way. But are these particular clients that great for what I am a specialist in?

Obviously, commercial real estate is a very broad industry. You have the office aspect, industrial, retail, construction and more. As a commercial real estate agent and adviser, I work with clients of many sizes to find their ideal commercial needs, whether they are looking to buy, sell, lease or rent in the Monroe, Louisiana area.

What exactly happens if someone that was referred over to me does not fit the criteria of buyers and sellers that I work with? Just because they do not fit within my main structure does not mean that I will not help them out by any means. What this does mean though is that I will not be actively looking for these particular clients or will be spending money on marketing trying to find them either. What this also means is that this particular client or business may be getting referred out as well due to the fact that I may not be the best agent to help with their particular needs. Having a commercial real estate specialist for your particular property is the best choice as you know you will be getting the most out of your real estate experience.

By knowing who our ideal client is, we are then able to work with them one on one and can provide the expertise that they deserve and need in order to find the best property available, or sell their current real estate for exactly what they deserve. Specializing in a particular part of the commercial real estate industry will be a win-win for both sides of the party, leading to a faster transaction with a greater amount of knowledge.

Top 10 Ways You Know You Choose The Wrong Monroe Commercial Real Estate Agent

Top 10 Ways You Know You Choose The Wrong Monroe Commercial Real Estate Agent

Wondering just how you may be able to tell that you have chosen the wrong Monroe Commercial real estate agent? We have compiled a list of the Top 10 ways you may know that the agent is just not right for you:

1). The commercial real estate space you are being shown is in the range of what you are wanting, but they are not even close to being laid out to what you truly asked for.

2). When you ask a few questions about potentially remodeling or reconstructing the office space, the broker will answer with "no problem at all" without even asking if it is possible.

3). The commercial agent you are working with sends out a large print out document that shows every available property on the mls and ask you to pick out the ones you prefer before even meeting with you to discuss what you would ideally like.

4). The agent becomes extremely familiar with the place they show you that the landlord allows their name to be put on the sign in front of the building.

5). The agent frantically tries to call each potential building in the car while driving there to see what availability they have for openings and tours.

6). Many hours in to the tour at hand, the agent has no clue about anything you do or anything about you at all.

7). You are out on the road so much with the Monroe Commercial Real Estate Agent that you end up eating all three meals with them.

8). You want to go insane listening to them talk about all of the big time deals they have completed in the past few weeks, months and years.

9). At the end of all of the touring, the agent then lets you know that you will get in to your favorite building no questions asked.

10). You are not working with Ryan Roark from Keller Williams Realty.

When this is all said and done, working with the right Monroe Commercial Real Estate agent can cost you more than just money, but at the end of the day having an experienced and specialized broker on your side can make all of the difference in your buying/ leasing transaction.

What Does Your Monroe Commercial Real Estate Agent Specialize In?

What Does Your Monroe Commercial Real Estate Agent Specialize In?

The difference that commercial real estate agents and residential real estate agents in Monroe are far and in between. Each sector of the real estate market serves it's purpose to our economy and of course towards our community that needs help moving either their business or their home. In the past 30 years though, the real estate brokerage has evolved and is becoming a very specialized industry.

When dealing with a residential agent, it is normal to see the realtor specialize in geographic locations, pricing of homes, types of properties, types of potential clients and their own type of service they offer. Brokers in this industry are now really seen as Monroe real estate advisers with information on all financial options, market analysis, portfolio analysis and more. What you will be seeing throughout the industry though are agents that are combining two or more of these specialties to encompass the needs of their clients.

Monroe commercial real estate is just a tad bit more specialized than the residential sector. In commercial real estate, agents tend to specialize in four main factors:

1. Geography
2. Product Type
3. Client Type
4. Services Provided

Just like the residential sector though, you will see many of these commercial real estate agents working on multiple sections as well to combine a better experience for the transaction. For instance, it is not unusual to see an agent focus primarily on Monroe, offices, for landlords, for purchase. This fulfills all of the requirements and allows them to specialize in this particular field for better results to the client.

When you look to utilize a Monroe commercial real estate agent in general, the higher the specialization the better. You will always have a wide array of options to work with when searching for an agent, but it is extremely important to find the one that serves your area, product, client type and services. You are never emotionally vested with each agent either and are more than welcome to utilize one to sell your home, another to rent you an office and a third to help with your portfolio. The more that you research and learn, the better!

Of course, if you are looking at moving offices, be sure to do so correctly. Check out our previous blog on Why Your Monroe Real Estate Landlord Thinks You Won't Move.

Why Your Monroe Real Estate Landlord Thinks You Won't Move

Why Your Monroe Real Estate Landlord Thinks You Won't Move

Last week we posted a blog article on commercial real estate entitled "What Monroe Office Space Factors Help Minimize Cost?" in which we spoke about how to save just a little extra of your hard earned money in the real estate process. This week we want to talk about what happens before you try to save the cost and decide to leave your current Monroe real estate location. When looking to move out of your current location though, most landlords will think that they have the advantage over another landlord looking to entice you and your business to signing with them.

Everyone, whether in a professional setting or in a personal setting, love the idea of moving and relocating, but despise the actual moving part. This may play a large part in to the "comfortable" feel that you have at your current location in comparison to up and leaving altogether. Monroe real estate is on the rise and it seems that deals are popping up all over the place as new buildings are being built almost daily to encompass businesses looking for commercial real estate and office space of all sizes. But, in order for your business to move though, you will need a very compelling reason and most tenants do not have one at the end of the day.

Top 5 Reasons Why The Landlord/ Owner Thinks You Will Not Move

1). Approximately 70% of all tenant's renew their commercial real estate lease when up for renewal

2). The lease is expiring soon and you are just now starting to talk about renewing

3). Landlords know the time, expenses and overall effort that is needed to relocate an entire business

4). You have not done the initial market research to demonstrate the other options available to you

5). You do not have a Monroe Real Estate Agent working with you to represent you and your best interests in the renewal or moving process

Landlords in Monroe know that most tenants feel comfortable and are more likely to renew than to get up and leave. With 70% of tenants renewing, it is not wonder that the landlord would not be thinking that the tenants are going to move. Of course, if you are looking to move and find a better deal for your business, contact the Monroe Commercial Expert Ryan Roark. Having a reliable real estate agent on your side can help to make the transaction that much simpler and economical for your return on investment. A Monroe Real Estate Agent is a necessity to have in order to move from one location to another, even if you are just looking at renegotiating with your current landlord.