For decades commercial real estate companies (brokers and data providers) have published market reports which are completely useless for tenants.
Here is an example of what a typical quarterly office market report looks like from just about every brokerage firm or data provider:
|Market||Inventory||Vacancy||Sublease||Net Absorption||Under Construction||Avg Asking Rent|
|Downtown||12,000,000 sf||24.6%||234,000 sf||320,000 sf||540,500 sf||$19.75|
|Midtown||1,200,000 sf||10.9%||250,000 sf||120,000 sf||350,000 sf||$22.35|
|Suburbs||3,000,000 sf||15.5%||185,000 sf||-175,000 sf||130,000 sf||$16.38|
NONE of these statistics matter to tenants.
Tenants do not care about the size or vacancy rate of a submarket, or what last quarter’s absorption rate was….
What matters to tenants?
- Actual Rental Rates: Using advertised rental rates to lease office space is like using the MSPR to buy a new car.
- Typical Concessions: Where does the report say how much free rent the tenant can expect? It doesn’t.
- Possible Incentives: Where does the report say how much improvement allowance the tenant can expect? It doesn’t.
Using LeaseMatrix’s CompVault, you can record the terms of every lease proposal you analyze automatically, giving you more lease proposal comps than you’ve ever imagined. And these comps represent information that tenants would KILL to have.
Let’s look at an example:
You represent a tenant looking for office space in the 10005 zip code. Where can you find the terms that matter most to tenants (i.e. actual rental rates, free rent periods and TI allowances)?
You’ll need fall back your own previous experience and maybe refer back to some recent proposals you’ve received for other tenants.
CompVault allows you to do just that, quickly.
Notice that CompVault not only provides previous lease proposals within the 10005 zip code, it provides the average within this comp set. In the example above, the average is:
|Size||Rental Rate||Lease Term||Free Rent||TI Allowance|
|Average||11,092 SF||$40.69/sf base||6.9 years||2.4 months||$48.75/rsf|
|13% loss||$44.52/sf effective||82 months||0.38 mos/yr||$7.63/rsf/yr|
This is information tenants LOVE!
So, stop giving your tenant rep clients information they don’t need (off-the-shelf market reports and surveys) and start giving them the information they are begging for!