Negotiating offices with landlords
Austin landlords are motivated in various ways for offices when it comes to negotiations. There are approximately six classifications for landlords regarding their offices. The following is a list of the types of landlords within Austin.
- Institutional landlords owing offices such as an insurance company
- Financial owners such as a bank or savings and loan
- Developers who become landlords for offices in Austin
- Family owners who are landlords in Austin
- Out of town investors who are office landlords
- Partnerships which are usually developers in some type of partnership with a lender or financial owner.
With regard to some lease negotiations, Insurance companies and banks own a lot of commercial offices . They usually contract the day to day management of each commercial building that they own. These folks have a different set of criteria than the landlord who is an owner of office space . An insurance company or a REIT with deep pockets may want a tenant to have a strong agreement in place by asking for tax returns for the past few years, bank account data and a good credit rating among other things. Since there is probably no mortgage on the office building, cash flow is not as important to this type of owner as it is to the local landlord.
With developers as landlords, sometimes these folks want to achieve a higher face value of Austin office leasing rates for an office so that the property value of the building has increased property value. Often these are the types of landlords that provide more concessions for tenant finish out and abatement as opposed to the institutional landlords for office space. in Austin. Knowing what the objective is of the landlord is important in negotiating an effective lease rate for an office space. Shire Commercial Real Estate helps tenants and buyers negotiate the best deals possible by understanding market conditions and the landlord’s expectations once the negotiations starts. Contact us today to benefit from market experience with office space in Austin. Visit : www.Austin-Office.com