TMC recently had the good fortune to serve Goldstein Enright as their tenant rep, in renewing their lease in San Ramon. With offices in San Francisco and San Ramon, Goldstein Enright is a well-known and highly regarded Bay Area certified public accounting firm. With 30 years of experience advising businesses, Rob Goldstein was well aware of how to work through an upcoming lease expiration date. Combined with our efforts on his behalf, we were able to accomplish a successful renewal in San Ramon:
* TMC and Goldstein Enright did the most important thing first. We started early. It depends on the space size of course. But for most tenants starting an analysis of an upcoming lease termination should start around 12 months before the lease expires. This allows a tenant to sequence the process with a comfortable timing so that the lease expiration date isnt such a burden. Plus, it creates leverage with the existing landlord should the tenant renew. As the landlord is aware that the tenant has time to relocate if they find a more suitable location and deal. Many tenants start a renewal process when they dont have time to relocate. A big mistake.
* After this we as tenant reps worked with Goldstein Enright to make sure we understood their space needs. That meant right sizing, discussing tenant improvements, location, and future needs. When a tenant can calculate any costs they might have in staying in the current location, or calculate costs the landlord will have to spend, they are in a knowledgeable position for negotiating the right terms and conditions for renewing.
* Next up, we go to market on behalf of our client and locate that most compelling location or two, should they need to relocate. We likewise work with our client to calculate the costs to move there. Important is to do a comprehensive spreadsheet on the costs to stay vs. costs to relocate.
Once that process is complete a good tenant rep will go direct to the landlord seeking a proposal from them. While at the same time seeking the same from the potential relocation sites. Undoubtedly the most important step, even if a tenant doesnt want to relocate, is to find an acceptable location that works for them. This creates great leverage for the tenant. Even if they dont want to relocate.
Using processes like this has recently helped us achieve renewal transaction rates that by average are 10-20% under what other real estate brokers are achieving. Tough to do, but with sophisticated tenants and some hard work, we make that happen for our clients.