CBIZ Gibraltar Insights And Resources

What is the Best Approach to Lease Negotiation?

Lease negotiation is a critical step in the real estate transaction management process. Following needs assessments, market analysis, site tours, the tenant rep will conduct a proposal process, issuing RFPs to landlords for a shortlist of candidate buildings.

CBIZ Gibraltar initiates a controlled negotiation process ensuring that maximum leverage is created for the benefit of the client without any conflicts of interest.

Our team’s experience in creating effective real estate solutions enable clients to stay focused on business strategies without sacrificing their real estate and facilities objectives. These objectives are clarified and considered against key negotiation goals (such as rates, concessions, improvements, renewals, expansion, and contractions for each location) and prepared as formal requests for proposal for finalist properties to respond.

Proposals are collected and evaluated based on all building components, such as rental rates, operating costs, escalations, concessions, buildout allowances, floor plate efficiency, infrastructure, parking, and amenities.

The alternatives are then narrowed to a short list of buildings, including the existing location (if applicable), to initiate formal negotiations. During the negotiation process, CBIZ Gibraltar will use our analytical tools to conduct comprehensive evaluation, including the financial impact of each location. A detailed assessment calculates occupancy costs at each viable option and identifies the financial stability of the building owners (such as but not limited to other known tenants and subtenants in the candidate buildings, etc.).

Recommendations for transaction strategies and undertaking negotiations on the client’s behalf is supported; and our team orchestrates a competitive bidding process that increases the tenant’s leverage in both renegotiation and relocation scenarios, while ensuring that an existing or competing landlord does not feel as if they are unopposed.

As CBIZ Gibraltar is an exclusive tenant representation firm, all clients are assured to receive unbiased negotiation services without the conflicts of interest associated with the many of the firms operating today.

Our teams will conduct comprehensive reviews of the leases in conjunction with the client’s legal representative, to ensure every aspect of the negotiated terms are included in the final documentation (ensuring necessary provisions (including clauses for specialty or desired requirements) are addressed in detail). Finally, post-transaction assistance, including verification that the economic terms of the executed lease are accurately reflected.

Whether you are considering a renewal in your current location, expansion, contraction, relocation or consolidation, our experienced team will walk you through every step of the process.

Without proper representation and counsel, a tenant might Get Stuck in a Bad Lease that offers little to no flexibility as their business expands or contracts. It is our belief that real estate decisions cannot be made simply by analyzing proposals from prospective landlords — a fuller understanding of all long-term implications must be examined and considered.

Contact CBIZ Gibraltar to learn more.