• How to Stay Within Your Tenant Improvement Budget

    Building out new office space can be somewhat akin to buying a new car. We have all walked into a car dealership with a firm budget in mind but then we make the mistake of test driving the upgraded model with all the cool features. Individually, the cost of these upgrades seem fairly innocuous; however, when we sit down with the salesperson to see the final tally, we often end up in a completely different price range than we had intended.

  • Who Should Fit Out the Tenant’s Space?

    Tenants spend a lot of time trying to find the right location for their business. They visit numerous buildings; test fit the spaces for efficiency and suitability and go back and forth on negotiations with the landlord over the economic terms. However, the tenant often fails to realize that after the lease is signed, a lot of financial risk still remains in the transaction. That’s because, in many cases, the tenant still has to build out its space, which can require significant capital and exposure to liability. Thus, if the tenant does not properly structure the construction arrangement for its improvements, its lease deal can end up costing a lot more than anyone expected.

  • When is a Market Comp Not a Comp?

    A tenant came to us recently asking for help. They were involved in a transaction with another broker and were concerned about the objectivity of the advice they were getting. The tenant was looking for about 50,000sf of space and was considering a building that was a bit off the beaten track but in an otherwise desirable submarket. They had been back and forth with the landlord (who we will refer to as “Landlord A”) on proposals, and their broker was now recommending to them that they accept Landlord A’s latest proposal as it was “market” or even a little better. In support of his recommendation, and at the request of the tenant, the broker provided information on a number of “similar” deals (market comparables or “comps”) that had recently been done in the “market”. The tenant asked us to assess whether in fact the proposed deal was a good deal.