Frequently Asked Questions
Why do I need Tenant Representation?
Why Sacramento Tenant Advisors?
How is Sacramento Tenant Advisors compensated?
When is the right time to begin looking for new space?
How much space should I lease?
How do I get started?
What is the shortest lease length/term I can lease for?
If there is only one broker (listing broker), won't I get a better deal with the landlord?
Isn't the landlord's broker trying to get me the best deal possible?
We don't want to move and intend to renew our lease. Why would we need STA's help?
What's the most common mistake a tenant makes when negotiating office space?
Why do I need Tenant Representation?
For the same reason you would not have one attorney representing both parties in a legal matter. It is never a good idea to negotiate a lease directly with the landlord’s broker, the landlord’s broker has a fiduciary duty to serve the best interest of the landlord. When Sacramento Tenant Advisors represents you, our fiduciary obligation is to act solely in your best interest. We will negotiate the best pricing, terms and concessions possible.
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Why SacramentoTenant Advisors??
Sacramento Tenant Advisors only represents tenants. Unlike other real estate companies, we never represent landlords. 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.
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How is SacramentoTenant Advisors compensated?
You don't spend a penny to use our services. The landlord pays their leasing agent a fee and their leasing agent will share that fee with Sacramento Tenant Advisors. In the event you do not have representation, the landlord will pay the entire fee to his leasing agent for negotiating against you. The leasing agent's job and fiduciary obligation are to get the best possible terms for his principal?.the landlord. Sacramento Tenant Advisors job and fiduciary obligation are to get the best possible terms for you.
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When is the right time to begin looking for new space?
It primarily depends on the size of your requirement. Typically, the best time to begin looking for a 1,000-5,000 SF requirement is 3-6 months before your lease expires; for 5,000-15,000 SF requirements, 6-12 months; and for requirements in excess of 15,000 SF, 12-18 months is the most effective time frame. When tenants have time on their side, they are not at the mercy of landlords and are not considered by them to be a "captive audience". The best deals are struck far in advance of the target lease commencement date. Many corporate executives miss the proverbial boat and all the potential incentives because they have begun negotiations too late in the process and have lost their position of strength. When landlords know your timing is tight they will almost always exploit this perceived weakness and capitalize on it by demanding their asking terms and being inflexible when negotiating the lease document.
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How much space should I lease?
The first two steps in the leasing process are to determine how much space you need and how much you are willing to spend. Every tenant has specific requirements and the variations in those requirements can significantly impact how much space your operation requires Sacramento Tenant Advisors will work with you in determining a target size range.
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How do I get started?
We will collectively determine your office space needs, review current market conditions and review a report of all available properties that meet your needs. We will be there for you from start to finish. Email us your requirements or call us at 916-913-9600 to begin the process immediately.
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What is the shortest lease length/term I can lease for?
Most leases are between 3-5 years. If the space you are considering leasing is already built-out and ready to occupy then you can typically get away with a 3-year lease. However, if the space you are considering leasing requires substantial Tenant Improvements, then the landlord will most likely require a longer term. The reason a landlord will require a longer term is so they can amortize the additional construction costs over a longer period of time. If you are seeking to lease space less than 3-5 years, you should consider executive suite space.
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If there is only one broker (listing broker), won't I get a better deal with the landlord?
No. Tenant rep brokers simply share in the landlord’s broker's fee, which is already built in to the building's lease-up pro forma analysis. In fact, Sacramento Tenant Advisors can typically negotiate much more favorable deals for our clients because we know the building's vacancy and projected future vacancy as well as what incentives are being offered in other buildings in the same market. Additionally, when a prospective tenant is represented by a broker, the landlord knows that the prospective tenant is considering other options and that the landlord needs to be competitive with their rates and incentives. The prospective client ends up getting a better deal when working with a ?Tenant Rep Broker? because the client is shown numerous alternatives and will benefit from the broker's many years of experience regarding market conditions and negotiation terms.
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Isn't the landlord's broker trying to get me the best deal possible?
No. The landlord's broker’s job, enforced by a listing agreement, is to get the best terms possible for the landlord. Landlords' agents can not simultaneously protect your best interest and not undermine their contracted client, the landlord. Many companies drive by buildings & respond to availability signs and solicit information from the internet. They think that by doing this themselves and not engaging an agent, they save money. In actuality, companies save money and time by utilizing the knowledge and experience possessed by a professional Tenant Representative. Remember? the landlord pays their leasing agent a fee and the their leasing agent will share that fee with Sacramento Tenant Advisors"
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We don't want to move and intend to renew our lease. Why would we need Sacramento Tenant Advisors help?
Landlords hire professional leasing agents to negotiate the highest returns for their investment property. If the agent or landlord can sign a tenant at a higher rate, it improves the landlord's bottom line. The key to a successful renewal negotiation is creating competition between your current landlord and landlords in the surrounding area, while maintaining a controlled and organized process. Tenants need to have an experienced real estate professional providing the proper market research and negotiation skills that will create leverage for them. Sacramento Tenant Advisors specializes in tenant representation and can save you significant amounts of time and money on lease renewals. We are aware that you don't want to damage your relationship with the landlord. That's why we deal with every landlord in an aggressive, yet fair and professional manner.
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What's the most common mistake a tenant makes when negotiating office space?
The biggest mistake that tenants make is by not developing alternatives to their first choice, whether they are interested in new space or a lease renewal. We frequently hear, "I don't want to move, and plan to renew my lease for another term". Even if you don't tell your landlord that you intend to stay, he will often arrive at that conclusion from your actions. And once the landlord understands that your intent is to stay, a tenant loses his negotiating leverage. Even tenants who have no reason to move must develop alternatives to their current situation because sometimes Landlords have alternatives to that same situation. If the landlord knows you intend to renew your lease you most likely forfeited all leverage in negotiating the terms of the renewal.
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