• Potato Chips and Leasing

    We’ve all done it. Opened up a bag of potato chips to find a lot of empty air where the afternoon snack should be. In the food industry there’s a name for all that air. It’s called “Slack Fill.” Food producers will tell you that there is a legitimate reason for Slack Fill. They say it is necessary because of today’s high-speed packaging machinery, or to prevent the product from breaking during shipment, or to keep the bag from breaking when trucked through high-altitude areas, or to discourage theft in the stores. Right. We all know why it’s there. It’s to give the illusion of more product.

  • Why Large Companies Don’t Maximize Negotiation Leverage

    It’s startling to read a large tenant’s lease and discover how less favorable it is compared to what smaller tenants with less leverage achieved at the same time in the market. Sometimes, the rent and other cost exposures are higher; other times, the work letter was poorly negotiated or the company is overexposed to liability. Typically, the reason for this unexpected dynamic is the company’s internal real estate process, which is often fragmented and precise but not accurate.

  • 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.