Tenant Representation/Buyer Agency
Tenant Representation and Buyer Agency are interchangeable terms that refer to an arrangement in which a real estate agent works on behalf of the tenant or buyer. Pennsylvania law states that, without any other agreement, real estate agents work for the Landlord or Owner. This means they cannot offer you advice, do comparative analysis, make recommendations, or negotiate on your behalf since their obligation is to the landlord or owner. We help our clients address all of the necessary considerations and, in most cases, these services are free of charge because they are paid for by the Landlord or Seller.
For corporate or institutional tenants, an office lease is often their largest single financial commitment. A tenant must consider an almost endless list of variables, such as negotiating tax and operating expense escalations, work letters, electrical charges, sublease and assignments rights, alterations, and options to expand or renew. Entering into such a commitment requires strong expertise. We’ve earned our reputation by providing comprehensive and nationwide leasing services. Whether the task involves relocating or negotiating lease renewals or modifications, we are uniquely equipped to advance and protect the interest of our clients.
Before investigating potential locations, we evaluate the financial and operational factors pertinent to your needs. We consider space availability, tenant profiles, comparable lease transactions and cost data such as real estate taxes, operating expenses and other escalation factor. We also advise clients on property market conditions and economic and demographic factors affecting real estate. We provide financial analysis and modeling, including discounted cash flow analysis. By objectively presenting tenants with every opportunity that meets their economic, geographic and space standards, we ensure they know all of their options before entering into or renew a leasing agreement.
We provide a “short list” of opportunities, budgets and detailed schedules for each selected alternative, and conduct negotiations with all landlords on the list. If appropriate, we seek public sector incentives. We help the client decide which option best meets their needs, then manage the project schedule by defining critical dates and providing progress reports through the point of completion.
Investment and Acquisition Advisory
Our investment and acquisition advisors specialize in creatively structuring transactions to meet desired objectives of both the buyer and seller. Some of these services include: analysis of present and future market conditions; evaluation of building operations and required capital improvements; discounted pre-tax and after-tax cash flow studies; assembly and planning for new construction; interim and permanent financing recommendations; location, screening, and acquisition for domestic and international investors; structuring of limited partnership investments; capital formation through refinancing and sale-leaseback; and analysis and negotiation of office condominium opportunities.
Tenant Space Construction
In most cases, a tenant will need to modify leasing space to meet operational requirements. If the tenant elects to take responsibility for the construction, in the form of cash reimbursements or rent abatements, the cost can be negotiated to offset some or all of the expense. If the tenant prefers that the landlord build the space, it will require complete planning of specifications prior to signing the lease via a “workletter” addendum. This letter details the landlord’s responsibilities and should be carefully reviewed to ensure it meets the tenant’s requirements. The cost of items not covered in the standard workletter must be priced and negotiated. Substitution and unit-price clauses must also be negotiated to protect the tenant from being charged for materials not used. The letter must include provisions, negotiations and requirements that will protect the tenant. During the course of a lease, additional renovations may be required that may favor the landlord in regards to cost, completion dates, space usage and the condition of the property upon exiting the lease. We can recommend and coordinate with your architect or space planner, assist in the negotiation of architectural and construction contracts, negotiate the financial and legal aspects of the workletter or tenant improvement allowance as well as protect your interests in negotiating notice provisions and post-lease alterations.
Studies and Analyses
We conduct studies and analyses including: building operations, management, feasibility, and corporate relocation studies; demographic, site, asset swap and investment analysis; lease renewal services; project consulting; and property valuation.
As part of Omni’s evaluation of client obligations, we conduct in-depth qualitative and quantitative analyses of all issues and expenses that impact the tenant’s occupancy. Omni has frequently been asked to evaluate unique possibilities, both before a lease signing and during the lease term, as clients’ needs change. We develop financial analyses at all stages of the lease term to adjust for both proposed and actual modifications. We break down costs on a line-item-by-line basis, per year, per square foot. All expenses, from rent and escalations through occupancy tax, are included.