When so much is at stake financially and legally, you shouldn't have one broker representing both parties in an office lease or purchase transaction and for the same reason you would not want one attorney to represent both parties in a legal matter.

The biggest mistake that tenants make is not developing legitimate alternatives to their first choice, whether they are interested in new space or a lease renewal. We often hear, "I don't want to move, and plan to renew my lease for another term". Even if you don't tell your landlord, he will often draw that conclusion from your actions. And once the landlord understands this, a tenant loses his negotiating leverage. Even tenants who have no reason to move must develop alternatives to their current situation. Otherwise they risk spending money needlessly because they have forfeited all leverage in negotiating the terms of their renewal.

You don't spend a penny to use our services. In most cases, the landlord/seller pays their leasing agent a fee and the leasing agent will share that fee with the REC Buyer/Tenant Rep. In the event you do not have representation, the landlord/seller will pay the entire fee to his leasing agent, but keep in mind where that leasing agent's loyalties lie when he represents a property. His job and fiduciary obligation are to get the best possible terms for his principal -- the landlord/seller. A tenant representative's job and fiduciary obligation are to get the best possible terms for you.

Landlords/Sellers hire professional leasing agents to negotiate the highest rents and returns for the investment in their building. If the agent or landlord/seller can sign a tenant/buyer at a higher rate, it improves the landlord's bottom line. The key to a successful renewal negotiation is creating competition between your current landlord/seller and surrounding landlords/sellers in the area, while maintaining a controlled and organized process. Tenants/buyers need to have an experienced advisor providing the proper market research and negotiating skill that will create leverage for them. REC Buyer/Tenant Specialists specialize exclusively in buyer/tenant representation and can save you significant amounts of time and money on lease renewals. Buyer/Tenant Specialists are aware that you don't want to damage your relationship with the landlord/owner. That's why we deal with every landlord/seller in an aggressive, yet fair and professional manner.

REC Buyer/Tenant Representation is a separate division of a large full service commercial real estate firm. REC assigns licensed brokers to work exclusively as Buyer/Tenant Reps who understand the work to be done as they provide a full range of commercial services with a dedicated focus on the Buyer or the Tenant. They do not provide representation to landlords, owners or sellers of commercial property as they simply provide unfiltered focus on YOUR goals and objectives equipped with numerous resources and veterans in the industry. No deal is too small and repeat business is the highest form of praise for our work.

Market conditions, the size and complexity of the transaction, and option notice dates can help determine when to begin the process of evaluating your office lease. Landlords know that other buildings you're considering will most likely have to create a space plan, get construction pricing, agree on a rental rate, prepare and execute a lease document, apply for construction permits and prepare the space for occupancy. This is typically a 4 to 6 month process. So a tenant that waits until there are only six months or less remaining in the lease term before asking the landlord for a lease renewal proposal is basically telling the landlord that it is not considering any other options. Depending on the size and complexity of your office space requirement you should allow, at a minimum, the following lead times to negotiate your office lease. OFFICE SIZE LEAD TIME 1,000 - 3,000 square feet: 4 to 6 months 3,000 - 10,000 square feet: 6 to 10 months 10,000 - 20,000 square feet: 8 months to one year above 20,000 square feet: up to two years in advance.

The first step in the space acquisition process, before you even start looking at space, is to determine the amount of space you will need. (See "REC Space Calculator") A general rule of thumb is to figure 200 to 250 square feet per person. However, this amount can vary greatly, and it is important to prepare a space plan program. (See "RECI Space Survey") Professional space planning services may be available at no cost to the tenant.

The best way to get started is by determining your business space needs, reviewing current market conditions and obtaining a list of all available properties that meet your needs. Contact Us.

You can contact us directly at 630.942.7000 or e-mail us at info@rec-illinois.com.