Questions

1. Why do I need Tenant Representation?
2. Why John Savard?
3. What is the most common mistake a tenant makes when negotiating office space?
4. We just want to renew our existing lease.  Why would we need John Savard’s help?
5. Can I just find and lease my own office space?
6. Why shouldn’t I go direct to the leasing broker?
7. How is John Savard compensated for his services?
8. How does a tenant broker assist me to choose the right space for my business?
9. How much time to I need?
10. How much space should I lease?
11. Is there a size of office that John Savard can best assist a prospective tenant?
12. How to I get started?

Answers

1. Why do I need Tenant Representation?
   The interests of a commercial broker/brokerage firm will usually be with the landlord of the property, not the tenant.  So, not having tenant representation may mean that no one is looking out for YOUR best interests.  For example, Landlords frequently have one-sided language for lease clauses that are tilted to their side and require further negotiation in order to be acceptable.  Particularly risky are “standard” clauses as defined by the landlord.   Concessions, such as free rent, and tenant improvement allowances are important areas to consider in the lease negotiation process.  A landlord’s broker may not advise these to you as it is conflicting interests with the landlord, who has the broker’s loyalty.
   It is the same reason you would not have one attorney representing both parties in a legal matter. When so much is at stake financially and legally, you shouldn’t have one broker representing both parties in an office lease transaction.  It is always wise to secure the assistance of an experienced, independent, professional Calgary area commercial real estate tenant representative such as John Savard.
   
   
2. Why John Savard?
   John Savard only represents you, the tenant.  We dont have any conflicts of interest. Furthermore, you will know you are in good hands as we are the largest and most credible brokerage business that is exclusively tenant representative in downtown Calgary.  Consequently, your financial and business goals are all that matter to us.  We are free to aggressively negotiate for savings and lease terms that will provide the greatest benefit to your company. Furthermore, we have the skill, experience, and extensive knowledge in closing successful and favorable leasing agreements.
   
   
3. What is the most common mistake a tenant makes when negotiating office space?
   The biggest mistake that tenants make is not knowing their options and forfeiting all leverage in negotiating the terms of their renewal.  Even if a tenant has no plans to move and wants to renew his lease for another term, it is always a good exercise to develop legitimate alternatives to their first choice, even if the first choice is a lease renewal.  At the very least, they can study other options in the market and use this as leverage with the landlord when negotiating the terms of a renewal.   If an alternative choice is found, at better rates, a tenant need not risk spending money needlessly because of prematurely committing to any one course of action prior to signing a lease.
   
   
4. We just want to renew our existing lease.  Why would we need John Savard’s help?
   Landlords are business professionals who wants to make the most from their premises.  So, they hire professional leasing agents to negotiate for them, the highest returns possible.  If the agent or landlord can sign a tenant at a higher rate, it improves the landlord’s bottom line.  John Savard can successfully negotiate your renewal by creating competition between your landlord and surrounding landlords in the area, while maintaining a controlled and organized process. Tenants need to have an experienced advisor providing the proper market research and negotiating skill that will create leverage for them.  Landlords will push as hard as they can, to get the most return/revenue.  Without damaging your relationship with your landlord, John Savard can save you significant amounts of time and money in lease renewals by dealing with your landlord in an aggressive, yet fair and professional manner.
   
   
5. Can I just find and lease my own office space?
   Yes, but it is not advisable.  We have many years of experience working within the commercial real estate industry of Calgary and we can use our knowledge in the office leasing market, along with comparisons of several possible tenancies, as tools to assist in your business getting a favourable office space on favorable terms. Additionally, we will ensure that listing brokers understand that you are considering other premises.  This will encourage the landlord to remain competitive with their prices and incentives.
   Since you can retain our services at no cost to you (fees are paid by the Landlord), your company has little to lose by retaining a tenant broker like John Savard.
   
   
6. Why shouldn’t I go direct to the leasing broker?
   Responding to availability signs or internet advertising, you are dealing with a broker hired by the landlord.  The landlord’s broker is contracted by the landlord to secure suitable tenants at the best terms and price possible for the landlord.  In many circumstances, the landlord’s broker cannot consider your needs without undermining their contract to represent the landlord. Using a professional tenant broker like John Savard will assist you to ensure that your interests are considered, as well as saving your company valuable time and money.
   
   
7. How is John Savard compensated for his services?
   In most cases, the landlord pays their leasing agent a fee and the leasing agent will share that fee with John Savard.  In the event you do not have representation, the landlord 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.  A tenant representative’s job and fiduciary obligation are to get the best possible terms for you.
   
   
8. How does a tenant broker assist me to choose the right space for my business?
   Our analysis will help establish your company’s specific real estate requirements.  We help you identify your budgetary constraints and timescales, determine many other important factors that will influence your final property choice including: the location, the required level of public access, the size and flexibility of internal space, the accessibility of local facilities and amenities, the possibility of landlord incentives, the interior finish, the exterior appearance of the building, etc. Once we understand what you are looking for, we will give you several options that fit your specific criteria, tour each space, negotiate on your behalf to the landlord and close that deal for your perfect business premises.
   
   
9. How much time to I need?
   Depending on market conditions, the size and complexity of the transaction and your requirement for office space, you should allow at the minimum the following lead times to negotiate your office space:
   
   

   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

   
   We can find you space at a faster rate than this, but time should be your ally, not your enemy during negotiations with the landlord.  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 4-6 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.
   
   
10. How much space should I lease?
    To estimate your size requirements, simply click here.
    
    
11. Is there a size of office that John Savard can best assist a prospective tenant?
    No.  John Savard can assist prospective tenants with requirements from 1,000 sf to 500,000 sf of rentable office space.
    
    
12. How to I get started?
    We will be there to guide you through the whole process.  Click here to begin.  You can also email John Savard at jsavard (at) devencorenkfcalgary.com or call him at his cellphone 403-619-5646.