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OfficeTenant.com
Building Technical Data

This step is excellent in capturing all the non-financial differences building to building where some items are seen and in place, and others are omitted or missing.


By way of example, a company leased 30,000 sq. ft. for their corporate offices. Within the corporate offices was a considerable law library that, at first blush, seemed antiseptic enough. However, during the construction of the floor (of the new development) for this tenant, a sharp engineer raised the issue of the floor weight capacity as compared to the actual weight that would be incurred by the fully laden library. It was determined that in fact the library represented an average weight of over 140 pounds per square foot while the floor was designed to accommodate no greater than 100 pounds per sq. ft.  This required extensive structural modifications to the floor, delayed construction to the space, delayed the lease commencement which caused the tenant to holdover at their old location for several months at double rent. In addition to charging the tenant for the cost overrun to bolster the floor structure, there were penalties for delayed occupancy at the new building as the modifications to the floor created a considerable delay in the overall construction of the office tower interfering with the timely commencement of several other tenants. Very unpleasant.




As you can see, the requirement of completing a Building Technical Data Form is no small matter. After the building has passed the preliminary muster of your architect, which is that the building meets your Criteria and Programming and you have an interest, most sophisticated commercial real estate architects use Technical Data Forms consisting of nearly every physical element of a building.  Your architect should then report to your team what, if anything further, is required to further qualify the building. It is okay if there is something wrong, even something very expensive to modify, but that must be determined very early, injected into the lease negotiations (when the leverage is the highest) and develop a solution through your team and with the landlord. It is not cool to either have wasted time going down a path which may not work or, worse, discovering a major, technical, financial problem after the deal is struck.


It may be likely that you actually come to know more about the building than the owner.

 

An example of building differences that matter to you are sprinkler systems and life safety features. In an office building, that has several floors as well as the larger office towers, life safety controls are essential, in my opinion. Without the availability of an emergency generator to provide emergency lighting, emergency smoke removal in elevator shafts, stair cases and floors and emergency communication for fire fighters, a building’s purported beauty, nice floor plan and view aren't worth the risks. No where are there more toxic smoke-emitting materials than in the synthetic materials found in office furniture and carpet.

 

Asbestos impregnated materials in older buildings are common. While that alone may not set off any alarms in you, try making modifications to your space or running wires in the ceiling plenum and the issue of carcinogen asbestos at your company will become its biggest problem.

 

Having represented an international insurance company in their leasing of over 40,000 square feet, among other criteria, they were mandated by their board of directors to NOT lease space in any buildings that do not have modern life safety features and that contain asbestos.

This will highlight different types of HVAC from building to building.   Some are quite efficient while others are antiquated and obsolete. It is important for the building owner to provide reasonable assurances as to the cooling capacity and heat expected. You can find the greatest deal in town, but if the AC or heat is lacking when you move in it will be a worthless deal.



As you can see, the requirement of completing a Building Technical Data Form is no small matter. After the building has passed the preliminary muster of your architect, which is that the building meets your Criteria and Programming and you have an interest, most sophisticated commercial real estate architects use Technical Data Forms consisting of nearly every physical element of a building.  Your architect should then report to your team what, if anything further, is required to further qualify the building. It is okay if there is something wrong, even something very expensive to modify, but that must be determined very early, injected into the lease negotiations (when the leverage is the highest) and develop a solution through your team and with the landlord. It is not cool to either have wasted time going down a path which may not work or, worse, discovering a major, technical, financial problem after the deal is struck.


It may be likely that you actually come to know more about the building than the owner.

 

An example of building differences that matter to you are sprinkler systems and life safety features. In an office building, that has several floors as well as the larger office towers, life safety controls are essential, in my opinion. Without the availability of an emergency generator to provide emergency lighting, emergency smoke removal in elevator shafts, stair cases and floors and emergency communication for fire fighters, a building’s purported beauty, nice floor plan and view aren't worth the risks. No where are there more toxic smoke-emitting materials than in the synthetic materials found in office furniture and carpet.

 

Asbestos impregnated materials in older buildings are common. While that alone may not set off any alarms in you, try making modifications to your space or running wires in the ceiling plenum and the issue of carcinogen asbestos at your company will become its biggest problem.

 

Having represented an international insurance company in their leasing of over 40,000 square feet, among other criteria, they were mandated by their board of directors to NOT lease space in any buildings that do not have modern life safety features and that contain asbestos.

This will highlight different types of HVAC from building to building.   Some are quite efficient while others are antiquated and obsolete. It is important for the building owner to provide reasonable assurances as to the cooling capacity and heat expected. You can find the greatest deal in town, but if the AC or heat is lacking when you move in it will be a worthless deal.



MORE TECHNICAL DATA

AFTER HOURS AND EXCESS USE UTILITIES

CPA firms and attorneys in particular create an inordinate demand on HVAC as they may occupy space at night or on weekends. Firms that create a substantial demand, such as 24 hour operations, may be better served to have all utility service metered separately, thereby not having the owner as the bookkeeper. Some buildings have master systems that turn on the whole building when demand is called for anywhere in the building. Others have multiple separate systems which service portions of the building. Many owners make this direct charge a profit center charging astronomical hourly amounts while others charge the actual costs. But you need to know these things before the lease is signed.


The technical data form provides for the owner to indicate these times as well as the cost per hour for such service after hours. The owner may prefer that this be separately metered to prevent any charges seeping on to his responsibility which they may have to pass on to the tenants. As a warning to you, in addition to discovering what additional costs you may face, you do not want to be paying increases in operating expenses that the owner should have collected from other abusive tenants.
 



HVAC
Number of HVAC zones is critical and the management of your own comfort within your space depends greatly on the flexibility of the HVAC system. Some deliver varying volumes of air and or at varying temperatures to different areas of the office. Others deliver a constant volume of air at constant temperatures. Some buildings suffer miserably by the effect of solar radiation and require some additional AC tonnage to cool. The southern side of one building may be hotter as the sun beats down, thereby creating demand for less heat internally (or maybe air-conditioning to offset the solar heat) while the other side of the building will be normal temperature calling for only typical building-served air supply.


The perpetual conflict between forced air conditioning and perimeter baseboard heat also is a killer as people at the perimeter will get the most heat while those in the interior are provided with less; cold sometimes. These two systems have a history of competing also. That is, while the perimeter heat is heating, it sends signals to the air flow or air conditioning thermostats to cool down, which it does and tells the heat thermostats to provide more heat. A round robin that usually ends up with many calls to the building management to adjust the system. Talk to the tenants already in the building; this helps tremendously.


If the system has flaws, have them negotiated now. Make arrangements for the addition of more zones (at the landlord's expense, not from your Tenant Improvement allowance) or to follow the recommendation of the HVAC specialist. Then back it up with language in the lease which marries the landlord to making the building HVAC system perform up to his word, or else.

 

ENERGY MANAGEMENT SYSTEMS

Many buildings built in recent years have been built with computer Energy Management Systems that govern many of the buildings operations. The cost of utilities has mandated greater cost control. Many years ago it would be indifferent whether the electricity was used for a couple extra days per month; the utility cost was so affordable that a couple of extra bucks by the owner went unnoticed. To the contrary today; the inability of a building owner to recoup excess costs could very well be the difference between profit and loss.  Energy Management Systems can range from a sophisticated master system to the simplicity of a personal computer that runs all aspects of the building. Electricity can be shut off after hours, lighting can be cut, the security system can monitor who enters and leaves the building. The real benefit besides the control of these aspects is that the after hours utility costs and excess use aspects can be governed with ease and billed to the appropriate party as opposed to just having the building pay and then increase the operating expense pass throughs to all tenants. An energy management system is really a tool for the landlord to better manage and govern typically unmanageable issues. The tenant gets to borrow the benefit by having a better run building. For those buildings without these, and if the building operating costs start to get out of hand which generates bills to you for increased operating expenses, negotiate that the landlord must install this type of system to alleviate the abusive costs. Add language to the lease which forces the landlord to do so. Without the language, the landlord has little incentive to act at all. Just keep sending you bills.

 

FLOOR CONSTRUCTION 
Buildings are constructed in a variety of ways depending on local custom, cost considerations and design. Mostly you will find only two, skip pan concrete and concrete pored on metal deck Concrete floors that are several inches thick are excellent sound barriers and very solid allowing for virtually no concern for placements of heavy areas like file rooms and libraries. Metal deck types are ordinarily less dense, are accustomed to some noise transmission and may actually spring slightly with heavy traffic. If libraries or heavy file storage areas are too used, special care needs to be taken as to their placement within the space which may or may not impact the overall design of the space. If you may be leasing several floors together, an internal stairway may be a possibility to reduce wait time for elevators and increase ease of movement. Certain structural criteria will determine where or if this is a possibility, again another item for your architect.

 

DISTRIBUTION - ELECTRIC, TELEPHONE 
Dull stuff, but a key question to being able to handle all of your electrical, data and telephone needs now and in the future. If not adequate, more may be required in the future. The landlord isn't going to pony up for that after your lease is signed, but if you believe it will be needed, have it upgraded as part of your negotiations now. It can cost tens of thousands of dollars to upgrade electrical distribution with transformers, buss ducts and panels, so be sure the pretty building at the good rent contains the services required to operate.

 

ELEVATORS – HOW MANY, WEIGHT CAPACITY, SPEED, PARKING, FREIGHT

Some buildings have beautiful elevators that whisk you to your floor at Captain Kirk speed. Others barely get to the floor, open two inches below the floor, are also used for freight or parking, Be sure to identify the value to you, positive or negative, of the elevators, their use, speed, safety, and weight capacity. A separate freight elevator is always a God-send to avoid sharing an elevator with an upright marble conference table or having to wait while one elevator is "out of service" being used for freight. Some high-rise building elevators are programmed to "station" themselves at mid points in the tower and wait for a call, making wait time shorter. Other elevators just sit where they last stopped, and may have to run 10 floors to get to the next call. Time is money and most buildings will have their elevator contractor provide a "wait time" report for you. If you have two or more floors in a building, wait time can cost you big money as your people stand around. Wait time can be calculated and added to the financial analysis.

 

LIFE/LIFE SAFETY, SPRINKLERS

There are many systems which help save lives now in office towers. And most contemporary fire districts and marshals apply these new standards to new buildings. Fear however the old grand building that lacks in total fire and life safety. Do not take anybody's word for anything with life safety. All building owners will firmly claim the approval of their life safety by the fire Marshall. One building may have nothing more than pull stations and lighted fire exits and another will have smoke detection in the return air plenum and in the occupied areas, emergency lighting, automatic smoke removal systems, "positive pressure" stair cases and elevator hoist ways, emergency annunciation systems which automatically announces throughout the building specific emergency instructions, emergency firefighter telephone jacks, and all powered by an emergency power generator in the event of a power failure.


Sprinkler systems are very important, especially in mid and highrise buildings. The cost of installing one in a building that does not have any can be astronomical and will likely not be installed because of your leasing, unless you are huge. If installed, routine maintenance is performed. Be sure to negotiate that you be notified in advance of any sprinkler or fire protection repair anywhere in the building, not just in your space. You should be clearly aware when the building is not protected with sprinklers (because some part has to be ordered from Timbuktu) so that you can make other emergency plans if a fire does break out during an unprotected period.


Do not pass over this component lightly. Many of my clients who have occupied the older buildings when evaluating their renew vs. relocate ideas, almost always recognize their lives, their families, and going home at the end of the day carry more weight than any cost savings they may benefit from an older, less life-safe building.

If the building doesn't pass your muster on life safety but works for your leasing interest, make the landlord upgrade the system as a condition to your leasing. Not after you move in (when the landlord will likely take forever to get around to it), but BEFORE you move in.

 

 SECURITY
 Security usually comes in the form of a guard who does little more than watch TV and eat sandwiches. Other buildings have a guard sit behind an impressive panel of lights, monitors and radios. But none of this is worth a nickel unless the guard is able to PERFORM a service for you. Keeping out the frequent door to door salesman is not security. Rushing to your suite when an irate visitor comes to your office, or escorting a terminated employee from the building is service. Also, keeping a log of visitors to the building is important when something is missing from your space. Remember, the security
cost is in the building's operating expenses; you pay for it in your rent and will pay for the increase in its cost. So, in addition to confirming what the security routinely provides, make the landlord put into your lease those services they will provide without additional charge. Make it a condition to your lease. It is a small item for the landlord to agree to but huge to you if you need it.


Electronic security is fast becoming the norm in the age of industrial espionage and terrorism. Security devices which monitor every employee to enter or leave the space are available as are simple devices such as door buzzers and video recording. Considering the scope or expense of these devices, they may be installed as part of the tenant improvements.

 

EMERGENCY GENERATOR
Power Outages are very common and while most companies take precautions to back up electronic information, it does little for getting out of the building when the electric goes out because of a storm or fire. Emergency generators generally operate emergency and life safety equipment, emergency lighting, and smoke removal systems. Some run the elevators at least to allow for lowering to the lobby to avoid any one becoming stuck in the elevator. Make sure your team has identified exactly what is powered by the generator and if you are a substantial user and a building that you are considering doesn't have one, require it as part of your negotiations. In some cases you may require one for your own personal business needs such as keeping an uplink communications system going, continue serving customers telephones or computer systems.  If you want to visit the 1890’s in business, just try to operate yours with no computers or telephones. There is no better time to get someone else to pay for these items than when you are just looking and starting to negotiate.


OPERATING EXPENSES


TENANT IMPROVEMENTS

SPACE MEASUREMENT

     

Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document

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