Benefits of Employing a National Corporate Real Estate firm

Value Added Results from Alliance Partners

A good Broker/Consultant with knowledge of construction, land, market conditions, the request for proposal process, etc., will structure a property search to create a competitive environment with area developers and other property owners for the client’s business. From this competitive environment, favorable lease proposals (rates and other conditions) will emerge and a strong negotiating position is set for completing the process and winning further lease concessions for the client. Our negotiating attitude is such that every aspect of the lease and occupancy is on the table. This includes but is not limited to lease rates, escalations, tenant improvement dollars, terms for expansion, terms for renewal and extensions of the lease, etc. A knowledgeable broker also has the expertise to negotiate a number of favorable lease terms such as penalties for delay of completion, definitions of CAM charge expenses, capital improvements to property and amortization, and other important lease issues.

Alliance Partners supporting services:

Alliance Partners will provide at no charge supporting construction oversight services for our clients. In lease negotiations and especially build to suit properties, this is a key service benefit for the client. For existing properties that need new or expanded offices and other property changes, it is important to have a knowledgeable construction or development professional oversee the process. We assure construction pricing by overseeing the bid process. Build to suit properties are even more critical in this regard. Alliance Partners will insure BTS projects are priced competitively, completed in budget and on time.

A discussion of commissions

Alliance Partners only represents the financial and operating interest of our clients. For a completed lease transaction, a commission is usually paid by the landlord to our firm. The commission is local market determined and is part of the total development cost for any commercial property. In many cases our clients believe this adds “cost” to a project or they believe money can be saved in negotiations by not using a broker. This is a mistake. First of all, the lease rates are determined by market conditions (competing developers) rather than cost. The cost driven model assumes a developer can pass along 100% of costs to the tenant. This is not the case. When multiple developers are competing for a client’s business, they are conscious of total development cost but they are really negotiating their end profit and risk, not their cost. Our business process for the property search will result in lower lease cost and better terms of occupancy that will far exceed any cost of the lease commission.

Rodger M. West, MBA, SIOR,BCCR, SLCR 770-355-9279