Brokers go to great lengths to obtain lease comps. But the more brokers we talked to, the more we noticed something:
Brokers actually have more lease comps than they realize…
For most, a “lease comp” is a data point created by an executed lease. But, by thinking this way, brokers limit the number of useful data points.
Whether they realize it or not, many brokers utilize another source for data points: previous lease proposals.
A little background
The industry’s current research practice is to collect and report the terms of agreed-upon leases, but many times a tenant will choose a building for a reason other than cost. It is not be unusual for a competing landlord to propose better financial terms than what the tenant ultimately chooses; sometimes the Tenant’s decision is based upon the property’s location or amenities. This means, the current research practice overlooks the other 2, 3, or even 5 legitimate data points; many of which may consist of proposals with a lower cost.
LeaseMatrix redefines what a lease comp is
Using LeaseMatrix’s patent pending technology, brokers can now collect and maintain the terms of every lease proposal they receive.
This way, the next time they represent a new tenant interested in the same building, they won’t have to dig through old files to find what the landlord offered the last time.
For example, here is a query for recent landlord proposals for Office space in the 10005 zip code:
Not only can you find all your prior proposals all in one place, CompVault will automatically provide the average rental rate, months of free rent and tenant improvement allowance for every filtered data set.
The overwhelming majority of brokers we talked to maintain their lease comps in an Excel spreadsheet. The more tech-savy ones have sometimes hacked a CRM tool in order to record lease proposal comps. There are many pitfalls to each approach.
The LeaseMatrix CompVault™ offers the following benefits over these two alternatives:
- No more double or triple data entry. When you analyze a lease proposal in LeaseMatrix, we’ll automatically pull the information into your CompVault.
- Accessible from anywhere. Unless you carry a laptop everywhere you go, you won’t have access to your Excel-based comp workbook. Every feature LeaseMatrix offers is accessible from any tablet device. Want proof? Check out our iPad demo.
- Dynamic filtering. Spreadsheets and CRM tools struggle to filter data quickly. The LeaseMatrix CompVault allows the ability to filter by Asset Type (Office, Retail Industrial, Flex/R&D), Asset Class (AA, A, B, C) and Comp Type (Landlord Proposal, Landlord Counter and Signed Lease).
- Dynamic search. In addition to filtering, users can search by Property Name, Street Address, or Zip Code.
- Automatic statistical averaging. With every query, CompVault will provide the average rental rate, lease term, free rent period and tenant improvement allowance.
If you are a current LeaseMatrix user, you can access your CompVault™ by visiting http://lease.io/comps once you are logged into your account.
If you are not a current user of LeaseMatrix, sign up for a free, full-feature trial to begin using CompVault now.