Why Now is the Time for a Closer Look at Your Real Estate Strategy

Many businesses are in the throes of re-evaluating their real estate needs as they weigh the cost of their space against the rapid rise of remote work culture. While many are opting to sublease, those that are choosing to maintain offices are looking for ways to take pressure off their balance sheets and ride out the downturn.

Strategies for the Current Market

Second quarter market data and early third quarter activity show signs that tenants will have increased leverage with options like short-term leases and free rent. So now is a critical time to review your lease (or leases) and ensure your real estate portfolio is optimized to weather the storm. 

A forensic lease audit offers tenants the opportunity to identify errors and recover overcharges. Operating expense exclusions, incorrect accounting methodology, calendar vs. fiscal year taxes and incorrect sublandlord billings are examples of common errors that can have impact on a tenant’s business. The COVID-19 pandemic may also give tenants the opportunity to challenge common area maintenance (CAM) charges or improper gross-up calculations based on unoccupied offices.

For businesses with a multi-location real estate portfolio, lease administration and strategic planning services can help businesses visualize their full portfolio to ensure that critical dates aren’t missed in strategic planning, monthly rent schedules are planned properly and that landlords and occupiers are in compliance. These services not only take the stress off of in-house teams, they can uncover hidden costs.

Navigating with an Unbiased Advocate

Occupiers who hire tenant-only advisors benefit from certain strategic advantages in lease negotiations. Because these advisors are not bound by any obligations to a landlord, they are positioned to negotiate more aggressively. How? They keep your desired outcome completely confidential, offer unbiased opinions on your situation and can leverage competitive offers from multiple landlords. All of this gives the tenant maximum leverage in negotiations, resulting in a real estate strategy that better supports your business.

----

Nick Markel is currently supporting occupiers on lease advisory and workplace strategy services. Contact him for more information. For thought-starters on negotiation points as occupier leverage increases, download our guide.

Related blog posts

Jodi Mullins
Blog
July 30, 2021

Cresa employee spotlight: Jodi Mullins

Jodi is an Operations Manager who has been with Cresa for 9 years and oversees operations for several of Cresa’s key offices, including Denver, Portland and Chicago.
Bob Speltz
Blog
July 27, 2021

Bob Speltz, Senior Director of Community Relations at The Standard

Bob Speltz is the Senior Director of Community Relations for The Standard. In this episode, host Blake St. Onge sits down with Bob to learn how The Standard's deep roots in Portland and their culture of philanthropy helped them support their 3,000 employees the past 15 months.
Colleen Murray
Blog
July 16, 2021

Evolving to a Hybrid Workplace with Colleen Murray, Director of Operations for Perkins & Co

As Colleen’s team at Perkins & Co started planning for reopening their office, they knew there would be a lot to contend with, and having a detailed, thoughtful plan was essential to communicate. “We’ve thought about it extensively in our reopening planning. How do we make people feel ok about this? How do we give them the space to re-enter (the office) that works for them and their family?” Colleen said.