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N e w s f o r t h e C o m m e r c i a l Te n a n t a n d B u y e r
Anew or newly renovated offi ce building is built and quickly fi lls up becoming 100% occupied. Why? Is the
demand for commercial offi ce space that strong in the Capital District? The answer is both “No” and “Yes”.
No, due to the fact we are not enjoying a strong growth of companies moving to the Capital area, but rather a steady
pace of growth from Capital area businesses. And Yes, because there remains a demand for high quality space at
So why is the new or newly renovated building fi lling up? Landlords like to blame the loss of Tenants on the
fact that the new or newly reconditioned property is enjoying a strong economic advantage. To clarify, the
economic advantage is given by the local government using a development enhanced property taxing program.
However; when questioned, most Tenants will tell you that they relocated due to the fact that their Landlord failed
the quality of their leasehold space - resulting in their dissatisfaction with the premises. Relocation may
also be required due to spatial changes relative to their business.
With this in mind, Landlords need to carry a reserve budget for aesthetic enhancements of the common areas
and leasehold premises. Examples of enhancements include: mechanical equipment modernization, lighting
systems, exterior and interior fi nishes for attracting and maintaining occupancy. Tenants are looking for superior
space with energy effi cient systems, and a high quality of management and care. To relocate, a tenant will incur the
cost of moving telephone service, data wiring, reprinting stationary, moving services and the loss of production time.
Unfortunately, if the landlord is not receptive to the tenant’s requests; the tenant would
much rather suffer the costs of relocating. At the same time, the landlord runs the risk
of not fi lling the space in a timely manner, and acquiring a fi nancial loss; as well.
Timothy R, Conley,
How can Landlords miss the Boat? 1
Public vs. Private? 2
Profi le: Amy Chevalier 2
Project Summary: Behan Communications, Inc. 3
P u b l i c v s . P r i v a t e ?
Written by: Amy Chevalier
Did you know that even the public sector is using Tenant Representation for their Real Estate needs? The Federal Government and various state governments, including New York State, use fi rms specializing in Tenant Representation to secure their lease locations and
negotiate the leases.
The reason that governments use this approach, is that they have found that having landlords compete for those leases assures them competitive rates and lease terms.
I have worked in both the public sector, as an employee of Real Estate Planning and Development at the NYS Offi ce of General Services, and now in the private sector. I have found that what a Tenant Representative can do for you is very similar to what they do for the Government. The fi rst step in their process is a needs assessment. This steps is to fi gure out the appropriate amount of square footage necessary and helps to avoid paying for more space than you need. It is more effi cient to adapt your real estate to meet your business needs, than to adapt your business to your real estate.
The second step in their process is to make Landlords compete for their business. How the public and the private sector handle this step is slightly different, but the concept remains the same. The Government cannot pick who they want to compete for their business; so they will issue a Request for Information (RFI) that allows any Landlord to respond. In the private sector location is often very important to a business. In this case, a Tenant Representative will do a market study to see what all the options are in the market. Then you would pick which locations you want to compete for your business. Your Tenant Representative would then issue a Request for Proposal (RFP) asking the specifi ed Landlords to respond to the business terms outlined in the RFP. This allows you to pre-negotiate many terms of your lease.
The third step is to analyze the responses to the RFI. (Once all the responses are in, they are analyzed and compared on an apples to apples basis. This offers the opportunity to see which response is most competitive in terms of price and other important criteria; such as, visibility of location, parking or access to other businesses or services.)
In my experience; I have discovered that although the Tenant Representation process may differ in some areas between the public and the private sector, the goal remains the same: to get the most effi cient space at the best price for your business.
in establishing real estate objectives, performs programming studies, facil-
ity reviews, market analysis, fi nancial
nications, from Marist College in Poughkeepsie. She is an avid sports
Behan Communications, Inc.
Property: 6,557 square feet
Location: 86 Glen Street
Glens Falls, NY
Summary and Accomplishments
Prior to enlisting Conley Associates, Behan Communications, Inc. had already begun the process of fi nding new offi ce space themselves. They had narrowed their option down to qualifying sites. However; in doing so, they discovered the complexities of commercial transactions and
the time commitment required. It was at this point that Behan Communications, Inc. retained Conley Associates to represent and assist in the facilitation of the transaction. After collecting the measurements and confi gurations for Behan Communications, Inc.’s existing space, their current spatial requirements were then identifi ed. Since both options were build to suit, having the correct spatial needs were critical on both an economic and an operational level.
In order to create a competitive playing fi eld for both options; Conley Associates prepared and submitted a Request for Proposal (RFP) to the owners of these qualifying sites. This incorporated all of the business terms of the transaction. Upon receipt of the RFP responses, Conley Associates completed a full analysis from both a transaction and a fi nancial perspective. Based on the analysis, Behan Communications, Inc. was able to make an informed decision regarding the best possible location for their business. In addition to the fi nal negotiations of the transaction’s business terms, Conley’s design division was retained to provide fi nal fl oor plans, selections for the structure’s fi nishes and millwork details. Construction scope and materials were also reviewed to ensure that the fi nal product met Behan Communications, Inc.’s expectations.
The following work was completed on behalf of Behan Communications, Inc.:
Established the Client’s real estate objectives
Provided space programming to determine the Client’s current square footage requirements.
Provided the Client with fi nancial analyses of the Landlord RFP responses to allow them to see the full
economic impact of each transaction.
Negotiated the real estate and business terms of lease
Consulted with Client to establish design standards
Assisted in fl oor plan layout, fi nish selection and furniture selection
Created value in a transaction that was already in progress with Conley Associates’ fee paid by the
Conley Associates provided not only helpful insight and analysis, but creative alternatives to overcome
challenges throughout the negotiating and planning process. I highly recommend Conley.”
194 Washington Avenue, Suite 620Albany, NY 12210-2314
º Tenant / Buyer Representationº Occupancy Servicesº Valuation & Appraisalº Financial Servicesº Market Research Servicesº Physical Planningº Project Managementº Construction Supervisionº Interior Design Servicesº Advisory Services
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3.4 PROPOSED GROUPED DWELLING (16 UNITS) - LOT 9178 HENLEY BROOK AVENUE, ELLENBROOK (ARAVA CIRCLE, AVELEY) Ward: (Ellenbrook Ward) (Statutory Planning) Disclosure of Interest: Nil Authorised Officer: Executive Manager - Planning and Development. KEY ISSUES Council considered an amendment to ODP 45 at its Ordinary Meeting on 9 November 2011 where it was resolved to suppor