As a tenant rep commercial real estate broker, I see my role from two perspectives: managing the forward momentum of a lease transaction and avoiding the pitfalls and dead ends that can run the deal off the road.   Continuing with the auto racing metaphor, steering the car requires the nimble use of both the accelerator and the brakes.   When a tenant I am representing or their intended use presents a challenge with respect to a particular building location, tapping on the brakes is often necessary to insure we navigate the wiggles in the road. 

In a recent blog post I mentioned the challenge of convincing a potential landlord to negotiate a deal with a start-up enterprise with little or no financial history to demonstrate their ability to underwrite the lease obligations.  This problem is compounded if the tenant is is domiciled in a foreign country.  The magic wand – if it is available to the tenant – is a standby letter of credit written by their bank.   A lucid narrative or Power Point presentation of the company also serves to bolster the landlord’s confidence and lessen their perception of risk.

Sometimes – rarely – a landlord might be sufficiently enamored with the tenant or their use and will not require any financial documentation.  I consider this absence of scrutiny a lucky break and I make sure the tenant understands that!

Another hurdle that tenants confront is finding a space that is zoned appropriately for their use.  This issue doesn’t come up with office space but it does with some industrial and retail uses.  I am currently representing an axe throwing tenant (yes, you read that right) and just getting the City Planning Department to decide how to categorize their use is a challenge!  The finesse of an experienced real estate broker is never more valuable than when navigating these issues.