What do we, as your tenant “rep”, provide for you? Three things, all important:
1. Knowledge of What is Available - We know, as of any given time what is actually available for rent or purchase in the Hulen Corridor.
2. Quoted Rents - We know the “posted” or “quoted” rents for each major building. As of today, most buildings have some vacancy and have declared a “quoted” rent. That means the broker representing the owner has the authority to tell you what the building charges as rent.
3. Negotiated Rents - And we know the actual rent that other tenants are paying which informs you of what concessions you may achieve, plus other lease provisions which you likely can modify to your advantage.
Some of you are already experts in reading commercial leases. Most are not. We’re now speaking to those who are not. Some aspects of today’s 30 to 40 page lease agreements, plus “Exhibits” are very difficult to understand and may prove to be very expensive if you did not understand them when you signed your lease.
We understand them. Let’s talk about the lease negotiation process. You have found a fine location, you like the building; and now you want to seek to rent an office. The list of items we will discuss with you may surprise you. We’ll start with the most basic then get a little deeper in the weeds.
1. The square footage of your leasehold. That’s important because that what your rent will depend on – “so much per square foot.” But, it’s not so simple. You may be charged a percentage of the entire floor, which contains elevator space and lobbies, as well as restrooms, common corridors, utility service areas and, maybe, a part of a floor lobby. But, armed with the right knowledge, one can negotiate these matters. We’ll show you how and then do it with you.
2. The quoted rent per square foot will be higher than the landlord is actually willing to accept. We will, in almost all cases, know that and advise you as to what the landlord is likely to accept.
3. If you need 60 days to make the new premises work for you, we can, again, in most instances, get that time rent free. We may negotiate some financial subsidy toward your improvements.
4. The landlord may be open to certain concessions regarding expansion options. We will know, within reason, what to ask for.
5. Personal guaranties – On your behalf we will resist your signing any such guaranties. If they must be signed, we will limit your exposure and include a relief provision when the premises are re-rented to a new tenant.
6. Rental increases during the term of your lease. We will resist them, at least for three years.
7. Renewal options. We will advise you of the policy in the building, and negotiate for what you need.
We will discuss common terms such as “Substantial Completion”, “Acceptance of Premises”, and a little item termed “Additional Fees and Expenses” all of which will cost you money if you do not fully understand them. We do, and we will discuss them with you at length.
The above are all illustrations of common provisions. There are many more in long commercial leases. But, they are printed in the English language, and we understand them.
Okay, you say – that all sounds good, but what am I paying you for all this specialized service. Here’s the nicest part – normally, you pay us “NOTHING”. Is that because we want to work for free – just to help nice people? Actually, “No”. But, the prevailing real estate custom in Tarrant County, and most other major real estate markets, that is the owner pays one commission divided between his broker and yours – “yours” means our good selves, Emersons’, and we will fight to prevent you from having to separately pay us.
Most importantly, we will be with you every step of the way .