Choyce Peterson lease renewal service provides clients with several strategic advantages: The power of a “represented” tenant. Experienced landlords know that tenants negotiating with the assistance of a broker present a higher risk of relocation to another building. Similarly, tenants negotiating without a real estate professional on the team renew over 80% of the time. Landlords logically assume that “un-represented” tenants are not seriously evaluating other alternatives, so these tenants don’t receive the full spectrum of concessions available in the market. The mere fact that a client has retained Choyce Peterson for a strategic evaluation of alternatives elicits more competitive proposals from the renewing landlord.
What’s your renewal worth to your landlord? It’s worth more than many clients think. Renewing an existing tenant saves the landlord the expense of finding a new tenant for the space (the cost of advertising, vacancy, tenant improvements, etc.). By quantifying these savings to the landlord, Choyce Peterson delivers increased negotiating leverage, and a better deal.
Getting behind the numbers. Better information is the key to better negotiating. This includes intelligence such as tenants seeking to sublet, lease expiration dates with size of related space, and pending relocations. By gathering market data and building-specific information, Choyce Peterson provides a true picture of the landlord’s position and the opportunity for negotiation, then develops the best strategies to bring for your business.
Securing new space creates the single greatest opportunity for a tenant to obtain a lease tailored to current and future business plans, whether it’s the relocation of an existing office or establishment of a new office.
The surest route to capitalizing on this opportunity is an orchestrated, arms-length negotiation through a single representative.
As your representative, Choyce Peterson provides plausible alternatives, simultaneous negotiations and an in-depth knowledge of the perceptions and realities of the market.
Choyce Peterson extracts maximum value from new space negotiations by utilizing:
A tenant's need to expand, whether or not the lease includes expansion options creates the most difficult time to negotiate future lease terms.
Landlords reacting to a tenant's expansion requirement will use a common tactic of leveraging the "handcuffs" of that tenant's existing lease liability, which adds prohibitively high costs to the relocation.
This tactic strengthens the landlord's negotiating position and achieves more favorable terms and conditions than the landlord might otherwise obtain.
To counter this market dynamic, the tenant must evaluate certain factors before contacting the landlord when initially setting the strategy for expansion negotiations. These factors include rates, term, existing options, percent increase in size, and tenant improvements.
Tenants who need to expand should also evaluate their tolerance for the following options:
Premature discussions with the landlord imply that the only viable options being considered are taking no action or leasing additional space under the landlord's terms. Again, securing the services of Choyce Peterson signifies a serious intent of a tenant to investigate all options.
Choyce Peterson uses its negotiating experience and market knowledge to strategize and negotiate on a client's behalf, thereby ensuring that the client reaps the full benefits of their now greater value to the building owner. As tenant representative during expansion negotiations, Choyce Peterson can:
Whatever the reason for disposal of space, Choyce Peterson can evaluate lease documents to help identify a disposition strategy and the issues concerning a sublease, cancellation, buyout or recapture by the landlord. In addition to gauging the impact of local market conditions, Choyce Peterson's lease review addresses restoration requirements, subleasing and marketing restrictions, landlord notice and consent issues.
Choyce Peterson can provide an opinion regarding the probability of success of one of these strategies from a supply and demand point of view and relative to the conditions of the master lease. Rather than turning to a landlord's agent, appointing Choyce Peterson assures the best buyout, recapture, or sublease negotiations. If subleasing, Choyce Peterson's expertise puts the sublease space on a level playing field with space that might be on the market directly from the landlord and competing buildings.
Choyce Peterson can provide:
- broker and public internet database listings.
- mailings of data sheets and floor plans.
- phone calls, and personal canvassing of area tenants and brokers.
Choyce Peterson was founded upon strong relationships with corporate clients having local and national real estate requirements. Each relationship has been built on Choyce Peterson’s ability to view the issues and available options through each client’s unique perspective, in the context of their specific business. This is a process that takes time. Choyce Peterson’s clients recognize the value of this effort to learn their business and the increased trust and efficiency that comes from a long-term relationship involving multiple transactions. Rather than repeat the process with numerous brokers in other markets, clients look to Choyce Peterson to be their real estate “field manager” for non-local requirements and thereby deliver a single point of contact as well as a consistent, comprehensive process.
In essence, Choyce Peterson becomes a corporation’s outsourced real estate department. As the real estate specialist on the team, much the same as with an in-house real estate manager, Choyce Peterson is the critical resource for implementing, strategizing and negotiating. The Choyce Peterson professional becomes the central contact for the landlord, the client firm’s local manger and the client’s headquarters staff. This streamlines the flow of information and facilitates fully informed decisions. Choyce Peterson also draws from local market contacts on an as needed basis.
For corporate clients requiring national representation, Choyce Peterson can:
When you negotiate directly with a landlord – even if it’s “only a renewal” – you’re facing a stacked deck.
The insight and market knowledge provided by the team at Choyce Peterson helps even the playing field. You’ll be armed with full knowledge of the current market dynamics and competitive opportunities. In fact, many clients secure a more favorable deal from their landlord on simple renewals because they engaged Choyce Peterson first. The mere fact that you bring in a tenant specialist tells your landlord that you’re serious, and fully informed.
Here are just a few of the advantages Choyce Peterson’s tenant specialist expertise can bring to your side of the table.
Rent is likely your second biggest expense, after salaries. Get it right from the beginning with expert negotiation that maximizes your leverage.
Why do landlords offer free rent? Because they have to – when the right negotiating points are made. We’ll help you secure the maximum, sometimes as much as twelve months.
Often ignored by tenants, it’s key to future flexibility. Get terms that allow you to pursue any opportunity, whether it’s reducing your footprint, expanding or merging your business.
Buried in your rent agreement is your share of the ever-increasing cost of operating a building. How is it calculated? Will it be tied to hard costs or a percentage of rent? We’ll show you the best option for your space.
As a tenant, you’ll pay a share of the real estate tax relative to your space. But what about increases? What is the base year? The answer, and the terms, can mean thousands of dollars.
Electric is a profit center for many landlords. They understand it in a way you never will: connected vs. demand load; rent inclusion vs. sub-meter; watts per square foot usable vs. rentable. We can guide you through it so you don’t leave money on the table.
While it’s difficult to see down the road and future space needs, we’ll help you secure options for expansion. Right of first refusal or right of first offer? We’ll help you lock in your best option.
Negotiating renewal terms up-front is an under-valued aspect of many agreements. Whether a fixed price or percentage of fair market value, we’ll win you smart options from day one.
A favorite of landlords, this means you can moved to accommodate a larger future tenant. It can be a dealbreaker, but doesn’t have to be. We’ll help you ensure the caliber and suitability of any relocation options – and ensure the landlord covers all your expenses.
If the landlord is building your space, you want to understand what is and what isn’t included. Do you have special power needs? Who is paying for the Class E hookup of the life safety system.
The objective analysis of a third party. Choyce Peterson brings the knowledgeable, objective point of view that only a third party can provide.
The core of a tenant real estate "team." Choyce Peterson professionals are adept at forming a dynamic, valuable team, leveraging the skills of team members when appropriate. This may include staff from the corporate tenant, an architect and an attorney.
A clear fiduciary relationship. Our role is clear and unambiguous: explore and develop all proposed transactions in the best interest of our corporate tenant clients. In a process that invariably favors landlords and owners, we fill the crucial role of tenant advocate.
Creating competition. While tenants often negotiate directly with landlords or their agents (landlords love this), it is the landlord who is more in tune with the day to day real estate market, and most aware of competition. This provides the basis for one of Choyce Peterson's most powerful negotiating tactics-leveraging one landlord against others to achieve maximum success.
Negotiating the deal. With the assistance of their real estate agent, attorney, architect, accountant and property manager, landlords have the upper hand in negotiations. Choyce Peterson provides tenants with the critical market information and professional representation needed to even the playing field during negotiations.
Thorough building assessment. Many building owners and representatives are not likely to point out a building's less appealing aspects. Choyce Peterson is experienced at identifying comparative differences among alternative buildings in areas ranging from building systems and space layout efficiencies to parking. This enables our clientele to make educated decisions.
The pulse of the market. By giving you a complete market survey (and updates) of available space that meet your criteria, Choyce Peterson strengthens your negotiating position with market knowledge.
Lease analysis. Leases can be confusing. Working with your attorney (we strongly recommend you hire one for all real estate transactions), Choyce Peterson will sort through a proposed lease to be sure that key business points and appropriate lease language are included and properly outlined.
Across the country, we represent national accounts in their search for local solutions, targeting a wide array of space needs.
For some tenants – and investors – it makes great sense to become an owner. We’ll explore and identify ownership options that fit your strategy.
Our mission is to raise the bar on the service provided to landlords throughout lower Fairfield County by creating and executing a strategic marketing plan to increase occupancy and rental income.