5 Phases of an Effective Tenant Representation Process

When approaching the process of revisiting your lease, expanding into a new space, or looking to fully relocate, a trusted real estate advisor is the first thing you need. Advisors are your secret weapon, they’re experts in areas you’re likely not privy to. Simply put, real estate advisors are professional negotiators. They’ll have the best insight into the market and know what realistic expectations look like, and will recognize a bad deal (or a great one) before you sign the dotted line. 

A trusted real estate advisor’s number one goal is to get you, the tenant, the best possible deal financially, and in a space that aligns with your business objectives, strategically and operationally. 

On a daily basis, you have your own duties and responsibilities, and your leadership team likely won’t have the time to get involved in the granular details leading up to the final real estate transaction. An advisor can help gather and present the information in a digestible way to make it easier for you to make a sound business decision and secure buy-in from your leadership team.

At Allegro Real Estate Brokers & Advisors, we offer several tenant representation services, including new locations, renewal assistance, lease restructuring, and more. Whatever your specific needs are, our team takes the same approach to ensure you receive the service you deserve as well as the optimal lease terms and conditions. 

Continue reading to learn more about our phased approach to tenant representation.

Phase 1: Project Strategy and Criteria Selection

The purpose of phase one is to identify the key indicators of success for the project and determine crucial milestones. During this phase, we’ll conduct a needs assessment to outline what should be covered in the first client meeting. The assessment will include details of the partnership and define parameters and answer questions about the desired outcome. Next, we’ll host a kickoff meeting with key stakeholders involved in the decision-making process. During this, we’ll discuss what factors are important to your organization. 

These factors can be a variety of things, but the following are examples of topics we’ll cover:

  • Strategic, financial, and operational objectives. What are the objectives your organization hopes to accomplish with this decision? Perhaps you’re looking to attract fresh talent in new locations with your expansion or eliminate unnecessary costs. 
  • Preferred geography. Where’s your most desired location to conduct business?
  • Square footage desired. Are you looking to expand or decrease your footprint? Where do you see your organization in the coming years? Your real estate advisor can help select an architect to provide space programming and fit planning.
  • Must-have characteristics. Does your operation require certain ceiling heights, loading docks, etc.?
  • Amenities and “bonus” features. What are some of your “wish list” items? These could be in-house cafes, lounges, on-site parking, and so on.
  • Budget. Perhaps the most important consideration, what budget does your organization have to work with?
  • Timeline. When does your current agreement expire or what other timing drivers affect your project? Having an accurate sense of your timeline is key to a successful search.

At the end of phase one, your advisors will summarize the critical project objectives, the selection criteria, and the strategic action plan, including timeline and decision milestones, to guide your search.

Phase 2: Market Research and Screening

In this phase, your advisors will first develop a long list of any viable project or site property alternatives. They’ll start by conducting a market survey based on the insights you provided in phase one. In addition to those findings, your advisor will conduct their own research by calling properties that might suit your needs and check for upcoming vacancies. They’ll also take time to research any off-market opportunities that might be willing to consider negotiations if it suits your needs.

Upon developing a list of buildings that meet your criteria, the team will then present its initial findings and help you filter it down to a shortlist. When you partner with a firm exclusively focused on tenant representation, you won’t have to worry about being presented with options that your broker owns or is the listing agent. At Allegro, our team is solely focused on tenant representation, meaning our team has your best interests in mind. 

Once you identify interest in a handful of properties, your advisor will coordinate in-person tours to visit the property.

Phase 3: Decision Support

In the third stage, your advisory team will gather the data needed to provide you with expert analysis to support your decision-making process. Here, your advisor will develop and manage the distribution of a request for proposal (RFP) to landlords in the top identified properties and, once received, evaluate their proposed terms. Every property will receive the same RFP, so essentially each landlord will be “bidding” for your tenancy.

A thorough RFP that reflects your needs is crucial to the successful relocation of your organization or restructuring of your current lease. In addition to the basic terms and conditions of the lease, they include information regarding expansion options, renewal options, early termination rights, and so on. These are factors that are often overlooked without the help of an experienced advisor. 

At the end of this phase, qualitative and quantitative analyses of the submitted proposals and strategic recommendations for negotiations are provided.

Phase 4: Leveraged Negotiations

In the fourth phase of tenant representation, your advisor will negotiate with landlords simultaneously to secure key business and legal terms. They’ll also evaluate any counteroffers, update comparative analyses, and resolve critical open issues for each property.

In this phase, the legal team will also be involved, helping to finalize key business and legal terms and conditions in negotiations. Once these are finalized and agreed upon, your advisor will complete an objective comparison of the properties and present their recommendations for your review and decision-making.

Phase 5: Closing and Documentation

In this final stage, all the hard work pays off! Your advisor will work with the legal team to finalize transaction documentation for the selected property and confirm that the lease is consistent with all of the negotiations leading up to it. This step includes the creation and execution of final transaction documents. 

Ready to get started?

Embark on your relocation or expansion journey today with an Allegro team member. Click here to schedule a free 30-minute consultation to discuss your needs. 

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