February 7, 2020
We’ve been gathering thousands of exclusive, first-hand data points for many years and we’ll be the first to admit that sometimes it feels like a chore.
Do we really need to track hundreds of data points on every single deal we negotiate?
Why, yes. Yes we do.
Capturing and archiving all that data — each landlord’s initial quote for rental rates, tenant improvement allowances, escalations, etc. — throughout the entire course of negotiations and in the final deal terms is critical.
Frankly it’s one of the most valuable things we do for our clients.
Over time, that data becomes a rich guidepost that helps us negotiate future deals more effectively and efficiently.
We have powerful insights into which landlords are likely to reduce overall deal economics on which buildings in which submarkets, and by how much.
We know which landlords prefer to stay firm on higher “face rates” for rent higher, but will gladly give concessions on other deal terms like parking or tenant improvement dollars.
We track the net effective occupancy cost, which takes into account all these deal terms for a more transparent and true look at expenses.
Taken together, our vast pool of data on historical deals gives us an excellent benchmark for whether a client is getting a “good deal” in the marketplace.
It also saves time because, as they say in Hollywood, we can cut to the chase. Our rich pool of data helps us avoid weeks of dragged out negotiations and repeated rounds of redlining proposed deal terms over things that we know the landlord isn’t likely to budge on.
Because we take time to learn each client’s business model, growth targets and financial objectives, we can also make more compelling cases to landlords about giving our client expansion rights or must-take provisions at favorable rates to match projected headcount growth and other business variables.
We even track how the building performs after the fact, and whether operational costs are higher than projected. We also track how employees use the space. Did we have enough small meeting rooms and private spaces for phone calls?
Most of our colleagues in the real estate industry don’t bother to do this, and we’re shocked at how many companies still accept such an old school and outdated approach to brokerage.
We appreciate how much culture, data and speed matter in real estate. Reach out so we can create a workplace your employees love.