One of the harder transaction management tasks for both tenants and their real estate service providers is leasing both quickly and effectively at the same time. It happens frequently where an occupancy change or new location is required, and the timeline is short to pull it together. TMC and our clients have needs like this come up frequently. What do you do?
First, you have to get on the same page with your tenant-client. Normally, if a client has a termination date upcoming in 12 months, it’s good to start meeting right away and understanding the needs of the space occupiers and corporate decision makers. Discussing submarkets and budgeting is key. Then setting a schedule of events and actions is critical. However, when the space need comes up 30-90 days in advance, it’s time to scramble.
If that’s the case, besides everyone keeping calm, the next action is to condense that 12-month period down to the 30-90-day period. But don’t skip any of the typical leasing and project tasks.
When our client in Tacoma needed new space, we did just that. We figured the geographic areas for relocation, the building type and space size. We figured it within days, not months.
Also, in a search like this, you try and take out all the unnecessary steps. Tenant improvements, or avoiding them is important. Planning TI’s, getting drawings, permits and then doing construction can take many months in some locales. What TMC does is create a prototype with our client. Then we pre-tour every space in advance. As finding existing TI’s that work in the right building at the right square footage is critical. It saves an enormous amount of time.
Next, we identify longer lead items. We address data needs and bring in the IT support person at the outset. Having the furniture support person or vendor available, and on task with our client saves a lot of time. After that, we keep legal counsel apprised of an upcoming lease document. So, the document can move quickly when drafted. Finally, having a short time fuse would seem to make it difficult to negotiate. But having 2 viable alternatives turns that situation around. Suddenly the landlord or landlord leasing broker needs to move as fast as you or they will lose the potential deal to the other alternative.
TMC has had over 30 years’ experience at moving on pace to satisfy clients needs quickly. That helps. Whether you have a long lead time or short timeframe to pull off a transaction, please feel free to contact us to help you.