It is important to have an experienced broker conducting this portion of the process. It takes formal training in finance combined with years in the real estate industry. It is a detailed process because it compares multiple spaces in different styles of “apples to apples” formats. Or, in other words, it weighs different aspects of each lease according to their importance.
YOUR BROKER WILL US KER WILL USE A PROGRAM TO CONDUCT THIS AN UCT THIS ANALYSIS. YOU CAN CONDUCT A FINANCIAL ANALYSIS WITH MANY OF THESE AS WELL. S WELL.
Though it’s a very bad idea to not use a broker, tenants can still use this software to conduct the analysis without the help of an expert. Lease Matrix can be found at https://lease.io. The software allows you to compare multiple properties, even leasing versus owning. It will also analyze the terms of each part of a proposed lease. There are other similar programs out there that will accomplish similar things. The difference between an average tenant using them and an experienced broker is dramatic. That’s because it is important to understand the principles of the analysis and how each of them impact cash flow. You need the final result to provide an effective occupancy cost per square foot analysis. It will be one of the deciding factors in your office search. The skill needed here allows you to understand the impact of various economic variables versus the value of the lease and to quantify the effectiveness of the rental rates, as indicated by the landlord. This is another time where the experience and effectiveness of a great commercial real estate agent will show through.
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