The corporate tenant is a complex machine. With so many moving parts, every machine is unique, even within the context of the same company. Managing a headquarters, warehouses, satellite offices, etc. is a headache to say the least. So when one of your hundred-plus leases is up, it is absolutely mindboggling to think to handle the process alone. But as puzzling as it sounds, a number of companies still try to manage the task in-house, without a broker, as a method to trim down corporate real estate expenses. How could you blame them in the economic conditions of the past few years? That said, subscribing to this philosophy is paramount: if you forgo tenant representation, more often than not, you will lose money over the duration of your lease.
Corporate Real Estate Directors and VP’s simply do not have the time (and far too often, the resources) to make the best possible decisions in lease renewal, relocation, expansion, contraction, etc. Never mind the daunting processes of following up with the back and forth of lease negotiations and all the rest. With such a limited ability to apply the necessary focus on several projects every year, corporate real estate professionals are in need some outside help – the help of a team, whose sole focus is set on the market, which the corporate tenant is targeting.
The knowledge and focus of such a team allows for efficient and effective decision-making, a better understanding of current market rates, and ultimately, an improved bottom line per your corporate real estate expenses.
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