Tenants: Don't Wait, Act Now on Lease Negotiations
Rather than maintaining the status quo during the recession, smart tenants will take action with their landlords and use the downturn to negotiate the most bang for the buck.
Jeffrey Rosenblatt, Senior Vice President, HelmsleySpear, LLC (Feb/Mar 09)
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Cost of Representation
In the commercial real estate business, it is the landlord who pays the fees to the tenant's representative. A competent real estate advisor, similar to a lawyer and/or CPA, will save a tenant a great deal of money by using his or her expertise in the market and experience dealing with landlords to negotiate the best possible deal for the tenant. A competent professional is sensitive to the tenant-landlord relationship and, by acting as a buffer between the tenant and the landlord, will maintain the parties' good relationship while negotiating on the tenant's behalf. Many landlords will acknowledge and welcome the presence of an advisor, because that person's presence will most likely result in consummating a transaction.
In the last down cycle, some companies seized the opportunity and locked in low-cost options, protecting their future. Many others sat idle. In the words of Warren Buffet, "What we learn from history is that people don't learn from history." Don't stay on the sidelines when you can get in the game and take action now, before the game is over.
Jeffrey Rosenblatt is a senior vice president for HelmsleySpear, one of the largest real estate management firms in the United States. He offers more than 25 years experience in both tenant and owner representation, and has been responsible for more than 10 million square feet of transactions with an aggregate value of more than $1 billion. Mr. Rosenblatt can be reached at email@example.com; visit the company's website at www.helmsleyspear.com.