What's in a negotiation? |
In a Tenant's market, most will focus their fight on a better rent and while there is certainly much to be won there, here are four select points we thought to highlight representing some of the other items on the table in today's market:
1. Face Rent vs. Net Effective Cost
As explained in last months newsletter, the spread between the quoted rents and net effective rents that tenants are paying (net of free rent and other goodies that Landlord’s are offering to buy up higher rents) has continued to expand.
A $65 per square foot rent is very different than a $65 per square foot rent with 18-months free. Catch my drift?
2. Privileges
Historically reserved exclusively for large companies, many of these offerings are are now on the table!
- Want your company’s name on the entrance? Ask!
- Overtime air-conditioning?
- Building lobby upgrade?
- Private bathroom installations?
- Exclusive roof terrace access
3. Options
Flexibility is as important as ever and it only serves as a benefit to have options in your lease should your business needs change (terminate, expand) or ultimately remain the same (renew). While smaller tenant's may be told to "go fly a kite" in a stronger market, Landlords are focused today on nailing down any interested tenant they can.
4. Extra Items
Tenant expense items have also been common from Landlord's as a way of building up the ever important face rent of their leases and in recent months we've arranged or negotiated for items such as:
- Furniture
- Private bathroom installation
- Elimination of ancillary charges
- Free swing space until the completion of a build out
Look beyond the rent, get educated and get a great deal!
Until next month,
Ben
P.S. We're hiring! Here's why
-1.png?width=101&height=115&name=Ben%20Blumenthal%20HS%20-%20Cropped%202%20(Transparent)-1.png)
Ben Blumenthal
Principal Broker | Noah & Co.
For the rest of our June 2023 Newsletter, click here.
Recent Blogs
