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Providing Creative and Cost Effective Solutions

Services

Interrelate Group focuses on the real estate needs and requirements of space occupiers. Relying on the foundation of our business philosophy, namely, building strong relationships with our clients, we first listen and understand overall business objectives, and we then develop and implement real estate strategies that create value.

Our goal is to enhance our clients’ successes by providing creative and cost effective solutions. Our tenant representation services are available for all varieties of acquisition and disposition transactions including leasing, subleasing, purchase and sale scenarios. Interrelate Group representatives apply their extensive transactional experience to the client’s immediate objectives while leveraging the firm’s knowledge of global real estate markets.

Transaction Services include Tenant Representation, Market Research and Consulting, Lease Administration, Investment Sales and Acquisitions and Agency Leasing. These interrelated disciplines converge to assure our clients the most comprehensive and professional real estate transaction representation available in the industry.

Tenant Representation Services

Current situational analysis
  • Review of existing obligation documentation for options and rights.
  • Determine basic business plan objectives interrelated to future expansion, contraction or other important factors.
Market evaluation
  • Analyze current trends and evaluate opportunities.
  • Review of recent market transaction comparables.
  • Conduct initial surveys of relevant candidate properties.
  • Evaluation of local incentives
Project team assemblage
  • Attorney, architect, engineer, project manager and other consultants
  • Prepare Request for Proposal of each outside service.
  • Review responses and prepare levelling document.
  • Assist client with final selection and contract negotiation.
  • Analysis of alternate properties
  • Consolidate reports on candidate properties from outside services and consultants.
Renewal strategy
  • Interface with current landlord to determine renewal opportunity.
Comparative analysis of existing vs. relocation opportunities
  • Comparative financial analysis of all relevant alternatives including renewal.
Option development
  • Issue proposals and analyze responses.
  • Conduct initial negotiations to determine shortlist.
  • Final selection and execution of lease documentation.
Project implementation
  • Oversight of project team, comparison and ensure compliance of transaction terms and construction plans to final installation.

Why real estate listing websites don’t tell the whole story

Several issues have become evident as a result of the recent proliferation of commercial office listing websites. We see a strong similarity to the legal and medical websites that have been around for years. A sick patient is unwise to treat himself based on internet research. Surely, the information can be useful, however, a doctor’s expertise and knowledge is always the best prescription. Anyone who seeks legal information on the internet and then acts without proper representation truly has a fool for a client. Entering negotiations for the seemingly simple task of leasing office space without proper representation is equally perilous. Here’s why:

Advocacy

Consulting a listing service usually directs the user to a broker who either has authority to list the space as the leasing agent for the landlord or, in the worst case, to a broker who is advertising spaces without direct authority. Our role is very different from that of the space shower, whose livelihood is dependent on convincing the tenant that his listing is the best one. This creates an inherent conflict – the tenant’s interests are ignored in either case because the brokers are acting on their own behalf or on behalf of the landlord.

Interrelate Group works entirely on behalf of our client – the tenant. We first learn about our client’s short and long term objectives and then we construct creative real estate strategies to fulfill these objectives. Working directly with a landlord’s leasing agent eliminates this important advocacy. The tenant is left to fend for itself and negotiate alone with entities who have no knowledge of the underlying business objectives.

Competition

Our clients confer upon us the authority to negotiate on their behalf with all potential landlords and their leasing agents. We vigorously and visibly explore all potential alternatives and then create a competitive “arena” in which the landlords compete for our client’s tenancy. We coordinate an organized process of analysis of proposals and responses until the best and most cost-effective solution emerges. The various landlords know they must be creative and competitive because they understand our clients are being represented by a single authorized advocate.

Market Knowledge and Expertise

The Interrelate Group team is led by brokers who have been representing tenants for more than thirty years. Our market knowledge of availabilities, transaction comparables and thorough knowledge of the intricate provisions found in complex lease documents are unsurpassed. Without this information it is virtually impossible to determine whether negotiated terms and conditions are fair and reasonable. We also bring our extensive experience with the planning and implementation of the construction phase to work on behalf of the client.

Cost

Very simply put – there is none. There is a fee built into most transactions and the industry practice provides for it to be paid by the landlord. Incredibly, the landlord’s agent is paid that brokerage fee if the tenant does not have representation. The tenant’s rent dollars are ultimately paying the brokerage fee so without an advocate, the tenant is effectively paying the landlord’s agent – someone who is working against the tenant’s interest.


Typical Relocation Process Flow Chart

Strategic Planning Phase Stage 1
Define Objectives
  • Establish short- and long- term business goals
  • Determine preliminary locational requirements
  • Identify financial considerations
  • Customize reporting process
Stage 2
Develop Strategic Planning
  • Analyze existing conditions (space utilization and lease commitments)
  • Clarify current and projected space requirements
  • Market research
  • Workforce and location analysis
  • Determine alternative scenarios
  • Establish preliminary budgets for potential renewal/relocation scenarios
  • Develop an informed and cohesive strategy to meet tenant’s requirements
Implementation Phase Stage 3
Pre-Design
  • Select team including architects, engineers, telecom consultant, CM
  • Preliminary programming
  • Develop building test fit criteria
Stage 4
Site Selection
  • Inspection tour of properties
  • Preliminary financial analysis
  • Select final candidates
  • Operational/technical review of alternatives
  • Assessment of building systems
  • Analyze efficiencies and layouts
  • Investigate building ownership
  • Operational analysis
  • Select most qualified properties
Stage 5
Initiate Space Negotiations
  • Send RFP to candidate landlords
  • Send RFP to existing landlord (if appropriate)
  • Financial and operational analysis
  • Determine government incentives
  • Eliminate unqualified properties
  • Refine negotiating strategy
  • Design, space planning, budget schedules
  • Financial analysis of proposals
Stage 6
Final Negotiations
  • Draft final terms and conditions
  • Develop construction documents
  • Financial analysis of agreed terms
  • Negotiate documents
  • Execute lease or renewal documents
Stage 7
Design and Construction
  • Final programming
  • Schematic drawings
  • Design development
  • Contract documents
  • Order long lead items
  • Order technology equipment
  • Order/build furniture
  • Obtain landlord approvals
  • Obtain building permits
  • Construct premises
  • Install systems and furniture
  • Move-in
Stage 8
Provide Ongoing Service and Maintenance
  • Prepare lease abstract
  • Monitor lease provisions
  • Review yearly escalation provisions
  • Assess general conditions

Outline of Renewal Negotiations

Interrelate Group represents your organization throughout the renewal/relocation process. We negotiate from a position of strength by completing a series of steps that creates competition among the potential landlords – including the current one:

  1. Understand your business plan and associated future growth or contraction needs.
    We strive to clearly understand your business plan and we develop an overall strategy to make sure real estate decisions effectively reflect your goals and objectives.
  2. Program the space needs that accommodate your business plan.
    We help select and then work closely with an architectural firm to develop on overall program of your initial and future office space requirements.
  3. Determine whether renewing and/or expanding in current space is an option in principle.
    Based on numerous aesthetic, quantitative and qualitative criteria, we help you evaluate whether renewing in your existing building is a viable option.
  4. Evaluate marketplace alternatives.
    We thoroughly research the defined office market and present every available alternative. We provide you with all pertinent financial, technical and qualitative information as well as reports on landlord performance from existing tenants.
  5. Evaluate current landlord’s upfront and long-term costs to replace you with another tenant.
    We calculate what your current landlord will face in the event that you move out. This will include potential downtime and all transaction costs including: construction and tenant fit-out, rent concessions and commissions.
  6. Evaluate your potential upfront savings to be realized by renewing.
    We calculate the savings you would realize by renewing versus a relocation to a competing property. This would include potentially not having to pay for upfront construction costs, new telecom and furniture systems. We take into account any available cash contribution from your current landlord toward installation upgrades.
  7. Perform sensitivity analysis to determine client’s “walk-away” criteria.
    We calculate the breakeven point where a relocation is more advantageous than renewing.
  8. Perform sensitivity analysis to anticipate current Landlord’s “walk-away” criteria.
    In order to understand the landlord’s position and to anticipate renewal offers from the landlord, we calculate the breakeven point below which it is unlikely the landlord will agree on transaction terms. This is largely based on the landlord’s costs to replace you.
  9. Perform sensitivity analysis to anticipate market alternatives’ willingness to reach for client.
    We analyze market comparable transactions to determine the best possible terms in the open marketplace.
  10. Based on the sensitivity analyses, we submit proposals to market alternatives and to your current landlord.
    We carefully structure proposals that reflect the breakeven calculations and market comparable transactions.
  11. Complete a renewal or relocation transaction from a position of strength created by capitalizing on the competition among various relocation and renewal alternatives.
    We will establish a competitive process based on accurate and relevant cost information evaluated against timely market intelligence.

Market Research and Consulting

Interrelate Group utilizes numerous information sources to provide our clients with customized reports on a vast array of market research subjects. We produce accurate and fully updated surveys of available properties to support our tenant representation services.


Lease Administration

Interrelate helps organizations manage their leased, owned and subleased properties in one integrated system. We focus from the client’s point of view and can accommodate large global portfolios as well as smaller regional portfolios. Our lease administration services allows our clients to manage easily real estate projects such as site selections, renewals, renovations, dispositions and more.


Investment Sales and Acquisitions

For investors looking to sell or buy investment grade properties or portfolios, we offer comprehensive and research-driven global transaction solutions. We deliver outstanding results by seamlessly combining capital markets expertise with a unique ability to develop customized solutions for individual clients.


Agency Leasing

Interrelate’s Leasing Agency practice offers property-specific programs to increase the pace of leasing, improve tenant retention, maximize rental rates, and stabilize operating income. Our senior professionals have extensive experience working on behalf of a wide variety of major institutional and individual ownerships.

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