Creating a competitive environment is essential to the commercial real estate process. With the implementation of a competitive strategy, the Tenant will gain several advantages as they move through the real estate transaction. A competitive process can be created through a combination of four major categories that in turn help the Tenant achieve overall success in their real estate transaction. The four areas that make up a competitive process are Knowledge of the Market, Time, Having a backup plan, and Know who you are dealing with.
With the help of a broker, Tenant’s will be able to structure a strong plan of action that will in turn help them gain leverage in the negotiation process, inherit valuable insight into the real estate market and have piece of mind that they are making the correct real estate decisions.
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Having a strong grasp of market trends & statistics is imperative when engaging in a real estate transaction. Knowing what factors are affecting different areas of the market can provide Tenant’s with the necessary means to negotiate confidently with Landlord’s.
With the assistance of a broker, a Tenant will be given access to in depth market knowledge that will be difficult to find elsewhere. A broker’s knowledge of the market will be extremely valuable when it comes time to negotiating a Lease as they will be able to provide insight on whether what is being offered is of fair market value or not. With market activity ever changing in the City of Ottawa, a broker will be able to draw on past, present and future market statistics to help their Tenant make informed decisions as they navigate their way through lease negotiations.
Time can often be disregarded by Tenant’s as an important aspect of a commercial real estate negotiation. Many Tenant’s are of the mindset that time will not be of any concern when looking for space, however, this is far from the truth. A commercial real estate transaction has many layers and allotting enough time to navigate these layers is essential to ensure that the Tenant achieves their desired results. The more time a Tenant allots themselves to make informed decisions will allow them to gain significant leverage in their negotiations.
A broker will help qualify the Tenant’s needs and layout a timeline for success. Having time is vital when creating a competitive process and can allow a Tenant to walk away from options if needed. The less time available will be detrimental to gaining any sort of competitive leverage as Landlord’s will be less willing to negotiate knowing that a tenant is strapped for time. With many sectors of the Ottawa market seeing increased activity, having time to prepare and make informed decisions is crucial.
A backup plan is the most effective way to ensure that a Tenant will not get stuck having to restart their process should their initial option fall through. Countless deals have fallen apart at the eleventh hour for one reason or another and the best way for a Tenant to protect themselves is to ensure that there is a Plan B and, in some cases, even a Plan C.
Having options can be of many benefits to a Tenant looking to find new space. Not only does this provide piece of mind to the Tenant but it correlates back to creating a competitive environment. With the help of a broker, a Tenant will then be able to use the other options as leverage during the negotiations. This will then put the pressure on the Landlord’s as they will be aware that they are not the only one at the table.
Knowing who you are dealing with is paramount when it comes to negotiating a Lease. As a Tenant who is entering into a lengthy agreement with the Landlord, getting to know who they are will go a long way in creating a strong and trusting relationship. It is important to know that should any issues arise over the course of a Tenant’s term that they will be dealt with in a timely and professional manner.
Using a broker can help you create this relationship with confidence. Brokers deal with the Ottawa Landlord’s on a regular basis allowing them to give insight as to how accommodating a Landlord may be to deal with when it comes to Lease negotiations and in-term issues alike. Some Landlord’s can prove difficult to work and will in turn negotiate a deal that includes clauses that are not Tenant friendly and, in some cases, hold the Tenant personally liable should things go awry. With the help of a broker, a Tenant can be sure that they will be made aware of these issues prior to entering a Lease.