CRE Report for 01.22.2012

Lease expiration tips for tenants.

Bob – Walt, if I was a commercial tenant in building and my lease is closing in on its expiration date, what are my options?  What should I be thinking about?

Walt – Bob, most tenants don’t anticipate the time it takes to either renew their existing lease of look at other possibilities in the marketplace.

The first option is to do nothing and try to stay in a month to month tenancy with no protection against the owner giving 30 days notice to vacate.  There might also be a “holdover charge” in the lease which the landlord can charge and that additional amount is usually 25% to 100% increase in the lease rate.

Bob – That’s a little scary, what about renegotiating for myself, it can’t’ be that hard, can it?

Walt – It’s like my father in law use to say you don’t know what you don’t know.  If you’re not in the market every day, a tenant might risk paying more than they should in this current market, they might also not be aware of current market incentives offered by landlords, there are some commitments in the fine print of the lease document that, in coordination with an attorney, need to be discovered and addressed to avoid clauses that could be harmful to the tenant in the lease, and most importantly it takes time away from the business to accomplish all this and it take the focus off the primary objective, your business.

Bob – Walt, I take it this is where you tell me how the Tenant Representation process works and how you can help tenants renew or relocate in this market.

Walt – Yes Bob, thanks for the softball. At Sperry Van Ness our brokers have handled thousands of leasing assignments we have the experience in getting the best possible results.  This is done at no costs to the tenant as the landlord pays the commission when the lease is executed.  We provide up to date relevant market information and guide our clients through the process from the initial meeting to move-in and beyond.  And finally the tenant representation process allows us to do what we do best which is the leasing component and allows the business owner do what they do best and that is to keep their focus on running the business.

Bob – How can people contact you today to talk about commercial real estate?

Walt – Thanks Bob, call me, Walt Arnold, on my direct line 505-256-1255 or check us out on the web at waltarnold.com.  Also if you have an issue regarding commercial that you need help with or want to talk to someone about give me a call and we can discuss it.  Talk to you next week, with my prediction for the Super Bowl, what else is there to talk about the next couple of weeks? Have a great week!  Also check out Sperry Van Ness on Facebook become a fan or follow me on Twitter for daily CRE news updates.