The market-value appraisal of the current lease agreements, recommendations on their optimization and conducting negotiations with the owner
The commercial conditions of objects’ lease/sale on the non-residential real estate market are based only on the demand and paying capability of the target audience of customers.
It means that during market fluctuation periods, tenants have to analyze and review the existing lease agreements and get the updated commercial conditions, which correspond to the current moment, approved by object’s owners.
Some tenants conduct such negotiations with the owners on their own and request from them to review the commercial terms of existing agreements due to the general market situation and averaged rent rates decrease. However, the tenant cannot always provide good reasoning while negotiating, since he does not possess up-to-date information about the factual situation on the falling market.
Specifically for the purpose of solving such issues, we offer a special service, market appraisal and support at the revision of commercial conditions of the existing lease agreements.
The advantages of the broker support of such negotiations are:
- up-to-date information on initial commercial conditions in similar buildings
- credible information on factual commercial conditions given by owners to different clients
- availability of the collaborative data about factual rent rates in the signed lease agreements for similar premises
This allows the broker most efficiently represent the tenant’s interests at the negotiations with the owners.
The following actions are taken within such service:
- Comparison analysis of the rent rates or cost with the current market situation taken into account for non-residential objects, similar to the leased premise
- Analysis of current lease agreements
- Preparation of comments to existing commercial conditions
- Preliminary selection of new premises and obtaining alternative commercial offers
- Recommendations on extension/termination/optimization of commercial terms of existing lease agreements
- Preparation of the collaborative table of costs and/or income under existing or projected agreements
- Conducting negotiations with the current owner and approval of the updated commercial conditions in favor of the tenant
- Legal support at the existing lease agreement re-signing or new lease agreement conclusion
- Assistance with conclusion of agreements with the management/operation company and their analysis
The broker fee for this service is made up as a bonus, certain percent of the rent payment saved by the client.
Real Estate Assets Market-value Appraisal
As an accompanying service, GVA Sawyer’s Brokerage department specialists are ready to perform a comprehensive market-value appraisal of real estate assets (network of bank branches, bank offices, mortgaged non-residential real estate objects, owned and/or leased objects) on the whole territory of Russia, and to provide an expert report concerning:
- “fair” market value,
- conformity of current commercial conditions to averaged market conditions,
- and to offer recommendations on cash flow optimization.
