The quest for “transparency” is a major driver in our world today so that people can make the best decisions. We saw it with banking reforms after the recession as well as with all the new disruptive technologies. In commercial real estate, we recently saw the push for transparency with the new lease accounting rules. Commercial real estate brokerage, is a sector in need of increased transparency, particularly given the continued consolidation of commercial real estate brokerage firms where it is increasingly common for opposing parties in a transaction to be represented by agents from the same firm. Beyond this conflict of interest issue, greater transparency is needed as to compensation and “incentives” offered by property owners to entice agents to show a particular property.
Lease renewals are one of the most profitable leasing transactions for landlords. As most tenants look to renew their lease to avoid the disruption associated with a relocation and as landlords perceive existing tenants as a “captive audience”, I’ve outlined below 10 steps for tenants to employ so as not to leave money on the table based upon my 20+ years representing office tenants in Chicago and throughout the country.
With the start of the new year and with the stock market continuing to break new levels, there’s a strong sense of optimism in our economy. As office vacancy mirrors employment rates, we are seeing vacancy rates continue to fall and rents rise nationally. Like the stock market, the office leasing market has its ups and downs. Maybe as an office tenant you were fortunate to lock-in low rents for a long term. But as companies grow, the demand for office space continues. Having 20+ years representing tenants during the office leasing cycles, here are some ideas on how to best navigate today’s increasingly landlord favorable markets.