Every project needs a starting position and has a predefined number of activities that will be undertaken from project initiation to closeout, commercial leasing projects are no exception.
Before the Executive Leadership team of any business start looking for suitable accommodation, they will need to understand the strategic aspirations for their new workplace. These aspirations may be shaped through consultation with the business well before commencing their property search.
The Executive Leadership team may explore industry benchmarking and good workplace practices that will complement any new or refreshed business model. The findings may result in a direction to proceed with a move, or perhaps even staying put. Whatever the result, the organization will benefit from a clear direction and an understanding of the complexities in procuring the right property.
Getting a Tenant Representative early on at this point will add value and facilitate the property procurement process. The Tenant Rep, like any expert across the different phases of a project in commercial property, will have their methods of approaching their work, as where the Change Manager in a project will run to their Change and Communications Strategy or the Project Manager will run to their PMP to keep them on track in delivering their clients outcomes, the Tenant Representative will use their Property Acquisition Project Plan. This plan is essentially their roadmap from the beginning of the client engagement to the outcome of delivering the client the premises that their business will thrive in.
Managing properties is a different process to procuring the property, and it is the job of the Tenant Rep to provide value to each assignment and Client. It should be no doubt that having the Tenant Rep onboard as an experienced practitioner will help achieve the goals of the Client organization.
In this course, you will gain an understanding of the accommodation project life cycle, where the client organization is currently sitting, and the roadmap ahead to achieve the organizations' objectives and how the Tenant Rep can help them achieve them by leveraging the market and acting at the right time.
Approximately 20 Minutes
It has possibly taken close to, or perhaps more than 26 weeks to get to the position of negotiating Heads of Agreement for a substantive property by undertaking many of the processes and following the stages in the Property Acquisition Plan. Every situation is different, and it could take 1 weeks to 52 weeks.
Between the stages where the decision maker underwent extensive consulting exercises and built a strong accommodation brief with their Tenant Rep, they also took part in cost comparison benchmarking, and met with their existing landlord to refresh them with the make good obligations and what would be on offer should they renegotiate a new lease. The client organization would have leant on their Tenant Rep to facilitate this process.
Tenant Rep would have undertaken the negotiations on preferred option and secondary options by this stage, but the decision maker and their legal counsel would have been ready to commit effort to achieving the commercial terms, lease flexibility and other lease obligations directly after negotiations. As the Tenant Rep and their client organization were undertaking negotiations on preferred options and secondary options, landlords were providing the client organization (their potential tenant) with the lease, which contains terms relating to the rent, the term of the lease, permitted use of the premises, any bank guarantee or security deposit required., maintenance requirements and make good and termination provisions.
After the excitement of the initial search, lease negotiations move into the commitment phase, Heads of Agreements – or Letters of Intent – or Memoranda of Understanding. Once the client organization makes their final decision on which option they want to choose and have agreed on all terms, the next step is to execute the final Heads of Agreement and provide a leasing deposit along with any other documentation required by the Landlord.
In this course, you will gain an understanding of what happens once a Heads of Agreement is signed, the lawyers are instructed, and the draft Lease is issued to the Tenant. You will explore what documents that a Tenant might see that may accompany the draft Lease and discuss what happens if either of the parties agree or don’t agree to finalize the draft Lease.
Approximately 20 Minutes
The Tenant Representative needs to keep up with the intel on what’s available in their market. This allows them to respond promptly and accurately to their clients’ requests to meet access, delivery options, and timeframes in line with their property procurement needs.
Tenant Representatives need to understand the stock available in the market and how other businesses are using this stock, as some buildings may be unsuitable for the type of business they are representing in more ways than one. It could be the wrong location for their customers and staff, or it could have redundant infrastructure that to get up to code would be cost-prohibitive.
The Tenant Representatives also need to be across the stock that’s available in their city and they will often review market analysis and competitor analysis on this stock, so they have perspectives on the marketplace and suitability for any of their clients.
In this course, you will gain an understanding of the importance of keeping up to date with the intel on what’s available in the market, and the things that you may want to introduce as options to your client and also the infrastructure and other risks that you may want your client to be aware of.
Approximately 20 Minutes
Students will gain an understanding of needs analysis and space planning, and why these elements are so important in the property procurement process.
Makegood refers to the clause in a lease that sets out how a tenant should leave a property when the lease comes to an end, whether by the expiry of the term or earlier termination. Standard leases contain makegood provisions requiring tenants to put space back to “as was” condition or, frequently, to a full open plan condition even if the fit out was an earlier tenants fit out.
A Tenant Rep may still be working with their client once they have helped them procure their office accommodation, and this may include helping to agree the scope of works with the lessor for a makegood and help source quotes and finalize the appointment of the contractor to do the work on behalf of the client. This could possibly be managed also by the internal Property Manager, but it is also possible that it is preferred that the Tenant Rep look after the exit obligations.
In this course, you will look at what a makegood obligation is, the types of things that the client organization may need help with, and other situations where in the cases, of less defined makegood obligations, the exiting/seller organizations may not need a reinstatement/make good but a disposal strategy to exit their premises.
Approximately 20 Minutes
Students will gain an understanding of business strategy and how to ensure alignment during property selection.