The first step to negotiating your deal, whether it’s for new space or a renewal, is for the company to learn the market. Every building that meets your initial parameters of location, class, price, and amenities should be inspected. This is a lot of footwork, but necessary. I believe, as a tenant representative, in empowering executives to make educated decisions. Once you have seen every building which meets your criteria, you will be able to recognize value.
The next step is for you and your broker to create a shortlist of properties. I advise my clients not to think in terms of “this is the building I want” but to think in terms of first choice, second choice, third choice, etc. It’s not unusual to have a shortlist of as many as five buildings. This is very important for two reasons: 1. a building may drop off the short list because it has been taken off the market. 2. The business terms offered by each building can be used against the terms offered by the other buildings. This way, the landlords are kept honest and leverage for the company is created.