What You Will Learn in This Video on Important Questions for Commercial Tenants:
- It is important to understand the tenant’s needs, flexibility, and the market conditions.
- Understanding the future goals of the business will help determine the scope of their real estate needs.
Video Transcript:
“If I were a potential client walking into your office and telling you that ‘Hey, I need space for my business,’ what are some of the key questions you’re going to ask me?
Well, part of it’s going to be ‘What are you doing now? Where is your business now? How much space do you occupy? How does it work for you? Where do you have access? Where do you have shortages? Does the geography work for your employees? Does the geography work for your clients and customers?’ So on and so forth.
I mean, I’ll give you a perfect example of a client of mine. They just moved from downtown Manhattan to Midtown Manhattan. Fifteen years ago, we moved downtown because Midtown was too expensive. They wanted $85 a foot. We just finished the deal in Midtown at some of the buildings that I’ve been talking about. The tenants have been taking that flight to quality. So it’s got some excess capacity if you will. And we bought back into Midtown in the low $60s. And think about it, that’s 25% less expensive than it was 15 years ago.
So rent is a function of the market and even more so today. You’ve really got to understand your clients’ needs, your clients’ flexibility, and understand the markets more so again out of Westchester because we’re really kind of a one one strata market. But understand where your tenant can go and what will work for their business.”
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