What is the MCREA lease diagnostic review?
Our team will perform a diagnostic review of your lease market position and options. This review will provide a complete picture of the current and future positioning of your space in the current sub-market. A written report will accompany our results and recommendations based on the following criteria.
MARKET RENT
How does your current rental rate (adjusted) compare to the current market?
Your Current “Pay Rate”
Most leases contain escalation clauses for increases in operating expenses and real estate taxes in addition to rent escalation clauses. We will calculate your current “pay rate” and compare that to the current market.
MARKET TRENDING UP
Our market research group will provide our quarterly vacancy indices and recent lease comps (rental rate, concession package, construction allowances and related lease terms). Our report will provide a forecast of the market trends related to your location and lease term.
LEASE ABSTRACT
Our report will include a lease abstract outlining the key clauses in your lease for easy reference.
Restoration / Dilapidations
We will assess any restoration obligations at the expiration of your lease. If required, develop a budget.
Utility / Energy Costs
How are you charged for after hours use? Meter, proportionate share? Cost per hour? Rate?
REVIEW OF OPTIONS
Renewal – Terms, notice date, fixed or market rate?
Early Termination -Terms, notice date, cost (formula or fixed number)
Expansion – ROFR/ROFO – Terms, notice date, rate, TI allowance, recurring?
RELOCATION COST / TIMELINE
What would it cost to relocate this facility?
Our report will contain a relocation budget based on local industry costs.
Time Line
How long would it take you to relocate this facility?
Our report contains a typical relocation timeline.
LOCATION ANALYSIS
What is the best location for your business?
Commutation Analysis / Scatter gram
Where do your employees commute from?
We will provide a scatter gram map (list of employee home addresses and zip codes required)
Access to public transportation and amenities noted
WORKPLACE STRATEGIES
What is your headcount PSF? (projected 12, 24, 36 months?)
Compared to industry norm?
Cube sizes, office sizes – compared to industry norm
Hoteling – Do you have people that can share offices/cubes?
Consolidation Possibilities – within current floor plan, or do you have other facilities that could be consolidated?
PHYSICAL CONDITION
We provide a “fresh set of eyes” on the physical condition of your space, remaining useful life of finishes, and will itemize areas for repair or improvement.
MARKET SURVEY / ALTERNATIVES
What viable space options are available in a 3, 5, 10 mile radius of your location?
A market availability survey will be provided.
Local Tax Structure
Local taxes that impact your occupancy cost (or the cost to your employees) are compared to nearby communities.
SUSTAINABILITY – GREEN LEED ® E.B.
Are elements of your space LEED or Green specified? Low VOC gas emitting carpet, paint, furniture fabrics, low VOC cleaning products?
Fresh Air? Does your building have up-to-date filtered air?
We will provide a survey of these items for you.
LANDLORD’S FINANCIAL CONDITION
We will confidentially assess the general financial viability of your landlord and the debt situation on your building.
