Category Archives: Commercial Lease Negotiations

6 Tips to Negotiate Your Commercial Lease Renewal

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By: Scott Pick, Managing Director, JLL

red scale negotiationsIt’s not uncommon for landlords to raise the rent when it comes time to renew your commercial lease. But, you don’t have to just accept your fate and pay more money. Lease renewal time presents an opportunity for companies to assess their current position as a renter, revisit the commercial real estate market and use that information to negotiate a better lease agreement.

For many, negotiation can be tricky and slightly intimidating.

Position yourself as a well-informed tenant armed with market knowledge to secure a better deal and earn back a portion of your occupancy costs.

Here are six helpful tips to consider during your lease renewal:… Read More

Investor Refresher: The Basics of Increasing Commercial Tenant Satisfaction and Retention

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By: Jeff Adams, Vice President, JLL

Building ownership and management is a business. Thus, losing tenants, like clients, can directly impact your ultimate sucess.

It can take two years to regain lost income if a single tenant leaves according to our study, The Cost of Losing a Tenant. You must also account for construction costs and the absence of rent during leasing downtime.

As a landlord, it’s important to maintain a healthy portfolio of consistent, long-term tenants. To increase tenant retention and earn a consistent profit, you should put a strategic action plan in place to maintain current tenants. Through strategic management, the ultimate goal is to achieve building-wide tenant satisfaction.

Why? According to a survey done by Kingsley Associates, the likelihood of lease renewal is tripled when tenants are sufficiently satisfied with management.Read More

Reinvent Your Office in 2015: Workplace Strategy Tips

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By: JC Pelusi, Market Leader, Managing Director, JLL 

Incredible, innovative and intelligent workspaces exist in our own Midwest backyard. Fast Company highlighted the recently renovated and re-designed Quicken Loans office in downtown Detroit, for example.

The physical workspace is an indisputable factor in employee satisfaction and production. A strategic office space can drive cost reduction, attract and retain talent, and fuel employee engagement. It’s the backbone of any business, and the home-base for big decisions and milestones.

That’s why JLL’s regional team decided to conduct a survey to learn more about what businesses in Ohio, Michigan and Pennsylvania prefer when it comes to office space.

Pinpointing Trends: Open vs. Closed Office Space

Do cubicles accelerate actual production of work, or do they limit creativity? Does real estate even matter when professionals are job searching? These are the types of questions we asked local professionals. We weren’t surprised that 80 percent said their dream office would include a good mix of open and closed space.

A few other trends uncovered include:

  • Fifty-one percent of respondents work within a mix of open and closed space, and another 36 percent work in a traditional office.
  • Thirty-five percent said open, collaborative office space hinders individual productivity. But, 16 percent said it fuels productivity.
  • When considering a new employer, real estate is a factor in 70 percent of respondents’ decision-making process.

The future of your business will be influenced by your space, but remember that there is no universal rule for the perfect space. Every business should observe its particular work styles, and build in amenities and features that cater to those preferences.

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How To Advance Your CRE Negotiation Strategies

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By: Collin Wheeler, Vice President at JLL 

JLL-Keys-successReal estate is expensive. In fact, it’s usually one of the most expensive line items on a business’ financial statements.

A decrease in rent, real estate taxes or capital exposure can have major impact on the bottom line. Often overlooked, hidden liability within a lease document can also have consequences. In the ever-changing economy, I frequently see organizations fall into a common real estate trap when they lose sight of financial impact, and make hasty, simple decisions based on landlord direction and lack of leverage.

Are you approaching your next move or occupancy decision? Below, I discuss a few tips to engaging in more strategic negotiations, plus insight into why working with a tenant representation advisor will save you money in the long run.

You might be shaking your head in disagreement (I get that), but please read on.  In addition to bottom line dollars, there are other avenues of liability and flexibility that are addressed.  In an age where business can change overnight (expand, contract or merge), flexibility within real estate situations are increasingly important.

Negotiation 101: Keys to Success

You can set yourself up for successful negotiation by being proactive, whether you are facing relocation or staying in your current asset.  There are two keys to getting what you want: time and leverage. Here’s why.

  • Time: If your lease is expiring in six months (and you haven’t engaged the landlord), you’re in a tough spot. At JLL, we involve the landlord no less than a year in advance of expiration. From the landlord’s perspective, he or she hopes to keep current, paying tenants in place. This means no down time (or lost rent) between tenants, no significant capital requirements by a new tenant as an enticement to lease, and no additional costs associated with a new transaction.  Therefore, most landlords are open to and appreciative of early negotiations.

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Is it Time to Renew Your Commercial Lease? 8 Benefits a Broker Provides

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By: Don Bain, Jr., executive vice president, Jones Lang LaSalle,  Great Lakes Region

Real estate is one of the largest expenditures an organization incurs, thus warranting a formal, strategic process to making sound decisions. As you approach your current commercial lease renewal, give your organization the best chance at negotiating a favorable agreement and selecting a property that best meets your needs.

To accomplish this, consider using a corporate real estateRead More