TRS can help you avoid the most common tenant pitfalls. Savvy commercial real estate tenants recognize the value of a professional broker while others believe they can save money by calling either a landlord or a landlord’s Broker and negotiating the lease themselves. Ultimately this costs them more and binds them to terms they did not want. The most common tenant pitfalls are:
- Not understanding the language that is in the lease.
- Accepting landlord terms believing they have to do so because it is landlord’s standard terms. All lease terms are negotiable.
- Not understanding leasing terms or how escalation costs are calculated. Some escalation terms are appropriate while others that are not can lead to unwelcome surprises and unnecessary cost.
- Not understanding rentable versus useable space.
- Not understanding construction allowances can lead to costly fit out surprises.
- Not all real estate agents are equal. As professional commercial real estate consultants we would never advise you on residential purchases and the reverse should also to be true. You should never rely on a residential real estate broker to advise you on the specialized transactions associated with commercial real estate.
- Paying more than market rate or renting in area which is wrong for them.
- Not starting to seek space with sufficient lead time. 6 to 24 months required depending on business size or complexity of business.