I was recently networking with fellow professionals who were asking how and why I do what I do for my commercial real estate clients and why I do it.  Apparently impressed after I shared a couple of case studies, he said “what you really are is a midwife for commercial real estate transactions.”  After a brief, painful wince, I realized he was spot on!

For example, sometimes the mother (the tenant) has a health condition that makes the birth (the lease) risky.  Think of a tenant that has weak financials or a business with little financial history.  As the midwife, I can guide them through a storytelling approach to the landlord that presents the business plan and the executive team behind it  in lieu of financial statements.

Another situation I am currently encountering with a tenant has to do with unique landlord circumstances.  Most leasing situations find me negotiating with an investor landlord who has vacant space in their building that they want to fill.  Perhaps the space has been vacant for several months.  I know that the owner is likely looking to get the highest possible rental rate to maintain or enhance the property’s market value and is willing to offer free rent up front as a concession to the tenant.   The space has been vacant for several months – what’s a few more?  

In the situation I am currently faced with, the property is owned by a business that is currently occupying the space.  They are planning to move out and lease the space to another business.  The owner here is more than likely focused on cash flow; that is, getting a stream of rent income starting immediately after he vacates is more important than the rental rate. 

The effective rent might end up the same in both situations but the right approach could be the difference between a healthy baby or no baby at all!