Hi,
I have a few questions about commercial office space leasing as a soon to be tenant (somewhere):
I'm looking at what I would describe as A- and Class B+ office space in west Houston, 2000-3000 sq. ft.
Generally, the market here for office space has been on a tear, but has cooled off over the last 6 months with persistently low oil and natural gas prices and many oil field service and related businesses downsizing and closing their doors.
I'm wondering, in a general sense, how negotiable are commercial office space terms? i.e. how badly can I beat the leasing agents up? For example, if Class B space is offered at $27/sq. ft., full service, is that just the "MSRP" like with a new car, then I can expect to do 10-20% better than that by pushing hard? I've already learned I can negotiate for things like construction credits and reserved parking, but I want to get a sense for how hard I should reasonably push on rent?
Also, what is the protocol for how a deal is consummated? Do I submit a written offer/proposal to lease the space like one would do in a real estate purchase transaction?
Further, am I better off representing myself, or should I engage a broker (even if I have already identified the properties myself)? Meaning, do I stand to get a better deal by not bringing someone else who needs to get paid into the fold?
Thanks for any advice?
I have a few questions about commercial office space leasing as a soon to be tenant (somewhere):
I'm looking at what I would describe as A- and Class B+ office space in west Houston, 2000-3000 sq. ft.
Generally, the market here for office space has been on a tear, but has cooled off over the last 6 months with persistently low oil and natural gas prices and many oil field service and related businesses downsizing and closing their doors.
I'm wondering, in a general sense, how negotiable are commercial office space terms? i.e. how badly can I beat the leasing agents up? For example, if Class B space is offered at $27/sq. ft., full service, is that just the "MSRP" like with a new car, then I can expect to do 10-20% better than that by pushing hard? I've already learned I can negotiate for things like construction credits and reserved parking, but I want to get a sense for how hard I should reasonably push on rent?
Also, what is the protocol for how a deal is consummated? Do I submit a written offer/proposal to lease the space like one would do in a real estate purchase transaction?
Further, am I better off representing myself, or should I engage a broker (even if I have already identified the properties myself)? Meaning, do I stand to get a better deal by not bringing someone else who needs to get paid into the fold?
Thanks for any advice?
