Office Tenant Needs Analysis
Updated: Sep 5, 2019
Every business has needs that need to be met to create the best economic outcome for the ownership. Regardless of what type of business you operate you will need real estate. However, most business focus on their core competencies and unfortunately the real estate is usually on the lower end of the needs list until it becomes a crisis.
The panic usually comes in many different forms. It is an unsettling realization that a lease is about to expire or that the option to renew period has is forgotten. A real panic occurred when you acquired a new contract that will require the hiring of 20 more employees, but you have nowhere to office them.
Irregardless of the situation an experienced tenant representative can meet with you and review your present situation. We help you to formulate a comprehensive plan of attack that will give you the better outcome for your needs.
We have several tools that we use in our analysis process for thirty years of working with office tenants to find the best solutions for their office space needs. Some of our tools are a situation analysis, opportunity analysis, and financial analysis. We use these tools to get the ideal results you desire.
The situation analysis begins when we have our first telephone conversation. We will listen to your concerns and what you want to accomplish. Then we will formulate some preliminary solutions but will want to meet with you at your office to get a better understanding of your present operation. To see what you like and also what you don't want to duplicate in your next location.
We will also ask detailed questions that are open-ended and allow us to determine our client's unique needs. Often a client is only focused upon immediate needs because of pressing matters, and they can overlook the long-term obligations that if missed become problems in the future. To the best of our ability, we help our clients solve their short-term needs and navigate them so that they have successful long-term outcomes as well.
The situation analysis includes but is not limited to:
Visit the tenant's present location to determine what is preferred and not acceptable with the current space.
Planning for present office needs and future growth
Determine the amount of flexibility the client will need in the lease terms and conditions.
Understand specific construction requirements that are necessary for the perfect space
Discuss technology requirements for data, communications, and redundancy
Learn the hours of operation for the tenant's typical office day
Once we have a detailed understanding of your current situation, its pros and cons, and your desired office space and lease outcome, we will perform a detailed Opportunity Analysis. The this is where the fun begins for most of our clients. They get to see the physical results of our work.
The Opportunity Analysis consists of these necessary parameters:
Site selection of spaces that meet our client's requirements including new construction, second generation, and sub-lease office space. We use or market knowledge and leverage our relationships with landlords and other brokers in the marketplace to find opportunities that are not general knowledge.
Submitting office space that meets your budgetary requirements.
Visit selected properties that meet the tenant's requirements
Sending specific requests for proposals to the properties that you choose
Analysis of office building's systems and infrastructure
Our financial analysis standards allow our clients to make informed decisions as to how the leasing of each office will affect their bottom line. Our analysis is a powerful tool that our clients use to enable them to make the best financial decision for their business. We take each lease and compare them with an easy to read format that allows our clients to determine which options the best for their business.
Our financial analysis includes for each property:
Now that the numbers are on the table our client has the advantage to study each offer and determine if one particular space is worth the extra dollars required instead of another space. Our analysis allows the client to step back from the emotional decision of a building' s amenities and make a substantial financial decision.
Usually, we will make another counter offer or two based upon the numbers we receive by selecting the top two buildings and let them reduce their rent or increase their concessions to make their option the most competitive. Once we choose the best option, it is time to draft leases and present the lease to a qualified attorney for legal review.
There is another critical area that we will discuss in another post that pertains to construction and tenant improvement. A well-negotiated lease will protect and set up perimeters that remove unexpected expenditures during construction and when the contract begins.