One of the biggest benefits a company looking to lease office space can gain when working with tenant representatives is great negotiating power for improvements. Through expert tenant representation, not only is a company able to locate the best commercial office space for their needs, they are assured to get their money’s worth from those spaces with the right tenant improvements. By providing the services below, a business looking to lease space can get beneficial improvements when working with the best tenant reps.
Oversee Bids on Improvement Work
Before any improvements are made, a landlord or tenant generally gets bids from local contractors. It is always the best idea for the bidding process to include a tenant representative, who can ensure that bidding is competitive, and there is little chance for overpricing. Overpriced bids mean a tenant gets less with their improvement allowance, so getting the best bid on contracting work is important. The best tenant reps can also insist on the right to include specific contractors in the bidding, which are generally those the tenant representative works with. This can keep bidding more competitive, promising more for the improvement dollar.
Manage Tenant Improvement Work
In any commercial lease situation, there is the possibility that a landlord already has planned certain improvements for their building. This base work must be clearly identified ahead of time, and kept separate from other work negotiated as part of tenant improvements. Tenant reps must carefully track any work progress in a building, and ensure that a landlord does not attempt to get already-planned work included as part of tenant improvements, as this denies a tenant their full improvement allotment budget.
A landlord may also charge high management fees to oversee the improvement work, called oversight fees. This is just another way for a landlord to make more money and further reduce the actual negotiated improvement allowance. Skilled tenant reps are aware of this maneuver and can ensure a landlord only charges the correct amount for tenant improvements – not for complete construction costs that also include pre-planned work.
Handle Unexpected Issues
Even in the best leasing circumstances, problems can arise. When construction begins and the unexpected happens, such as the discovery of unknown damage or items that require repair before improvements can actually be made, the entire project is affected. Experienced tenant reps will address such issues as they arise and negotiate with the landlord as to who owes for previously undetected building problems.
Control Construction Work and Billing
As improvement work is going forward, tenant representation is essential to monitor the work and how it is being billed. Tenant reps keep up with contractors, ensuring that work is completed on schedule. Once the work is done, they analyze all billing to make sure the charges are according to the agreement. This prevents inferior work, late delivery, and overcharging, all things a client might not be able to control on their own.
Because much about the improvement negotiation and construction process requires a working understanding of how a commercial leasing project works, careful management by tenant representatives should be considered a business necessity for any company seeking to lease office space. The best tenant reps help clients get the best lease possible and ensure no more than necessary is paid for negotiated improvements!
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