Commercial Real Estate Questions
Learn about Elika and why our services are the perfect fit for your commercial real estate transaction. Prior to choosing your real estate broker it is important to understand agency and the advantages of tenant representation.
What we do
- Elika Associates represents tenants and buyers of commercial property including office, retail and professional space.
- We work as consultants to companies, partnerships and non-profits. In this aspect, we offer expert unbiased advice on all issues including determining a property’s best and most productive use, evaluating the potential for a property’s development, maximizing the value of real estate assets etc.
Back to top
Our Methodology
We help our clients to see the whole picture of current market conditions clearly and instruct them on how to effectively leverage their transaction.
- Tenants offer a very valuable asset, their rental stream. By creating a landlord auction our clients end up with lower rents, rental concessions and additional funds for new office construction. This gives tenants the optimum value.
- We develop as many options for spaces as possible, creating an auction for our clients.
- We are in constant negotiations with multiple landlords and use market forces to affect the best possible deal for our clients.
- By keeping our clients informed every step of the way, relaying benefits and costs of every transaction, we ensure that our clients make the best possible decisions for their companies.
We perform follow ups to make sure that what was agreed upon in negotiations is present in the lease and that the landlord lives up to their end of the deal.
Back to top
Our Philosophy
- To provide a transparent process to our clients;
- To fully disclose the costs and benefits of our clients transaction;
- To understand the big picture of your business’s real estate transaction and to match your real estate assets with the goals of your company
Back to top
Why Elika Associates?
We have over ten years of experience in a spectrum of real estate transactions. Elika Associates enables corporate leaders by providing substantive information regarding real estate transactions. Many of our clients are represented on multiple transactions as a result of our unbiased advice.
Back to top
When Elika Associates
- The expiration of a lease
- The expansion of a company
- An under-performing real estate asset.
- Creating cash form real estate
- Your present broker is not giving you the attention you deserve
- Problems in real estate that need focused attention
Back to top
Exclusive Agency-Tenant Representation
Most large companies in New York City who wish to acquire a loft, rental office, showroom or medical space hire a broker to seek commercial real estate on their behalf. Representation agreements for tenants appoint a broker as your company’s sole representative. They will then search for purchased or leased space. Three months to one year is the typical contract.
Signing an exclusive agency agreement will offer advantages:
1. The use of your time will be efficient: Time is not wasted being by having the same space shown by several brokers.
2. The service is better: More time can be invested by your broker with assisting you since you have committed to work with him or her. An exclusive broker is much more likely to focus on his or her assignment and your specific needs become a top priority.
3. You have a common objective: The interest of the broker and client become aligned.
4. Leverage by negotiating: Exclusivity is used by the broker as a tool against the landlord and as a result a better deal is negotiated. The owner is always aware that a commission is earned by him or her.
5. Commitment of your interests: There is a fiduciary responsibility of your broker to serve your interests.
An exclusive agency and or tenant representation agreement is not mandatory. Our company is always happy to assist you with your Manhattan commercial real estate needs. This is handled in an informal manner.
Misconceptions are often made regarding office and retail space in Manhattan. People think that approaching a landlord directly will get a better deal. This is not true. Landlords will always try to get the highest rent they can. As a tenant, you're want the best space for the best price.. A broker representing you is generally free since commissions come from the landlord. A small error on your part however can cost thousands in the end. We will work with you step by step to help you get the perfect space.
We offer an all encompassing menu of commercial services to businesses in Manhattan and other New York City areas. Our highly experienced crew will help you find your business’s ideal piece of real estate ans will advise and stand behind you through the negotiation process. To avoid any conflicts of interest Elika Associates works solely with tenants. Our clients pay nothing out of pocket. The landlord is billed after lease signing.
List of services
- Property acquisition/disposition
- Finding the perfect locations that meet the needs of your business.
- Identify the best possible spaces and to tour these spaces
- Negotiating the lease or purchase of these space
- Best use / space planning
- Re-negotiating existing leases to take advantage of changes in the market
Finding the Right Space
Our database includes all commercial properties in the Manhattan area. We can quickly narrow down your search by utilizing the following criteria:
- Location
- Size
- Price
- Class
- Number of private offices
- A/C
- Security (doorman, 24/7 access)
- Conference room access and reception requirements
Tips on Using a Tenant Representative
Your biggest concern is managing your company. You don’t want to have to lease rental space more than once every 3 to 5 years; likewise with lease renewals. Throughout your business life you only rent space a few times but landlords rent the same space time and time again. Landlords often hire listing agents to help them market the property and advise them. Does this give them an unfair advantage? You bet it does. How do you level the playing field? You employ the services of a qualified office tenant representative. These commercial brokers specialize in representing the interests of tenants, not landlords.
A lot of prospective tenants fear that by hiring a representative to help negotiate a lease deal will cause the landlord to tack on the fee he ends up paying to your rent. This argument is simply untrue Fact is, a quality tenant representative is invaluable. They will save you money in the short term, and prevent you from making mistakes that could cost you a lot more money in the long term.
In most deals there is a real estate fee built into the asking price. This fee is paid regardless of whether you have representation or not. Most of the time the fee, which is from 4% to 6% of the gross lease amount, is shared by the tenant representative (leasing agent) and the listing agent. There is no additional fee added to the lease rate and you will definitely not save by going it alone. No matter what the commercial broker listing agent representing the landlord tells you – he is getting the whole thing.
Do you really need the services of a tenant rep for lease renewals? Without a doubt! A tenant representative’s pay on a renewal is negotiated between you and the rep. Whether or not they should earn a full fee on a renewal depends on the complexity of the work involved. If they simply do a market survey and negotiate the deal, a full fee is probably not deserved. Tenant reps generally work as consultants for an hourly rate or a predetermined flat fee. But if your deal is taking into consideration several possible locations, require proposals and preliminary negotiations on alternative properties a full fee is probably justified. The amount of work needed is similar to what would need to be done if you were moving. At the very least half a fee, the leasing side of a commission, is justified
Back to top
How will a tenant rep save you money?
- The leasing process is very complicated. The investment you make in office space is likely your highest cost after labor. Lease decisions can impact your company’s profitability directly. A tenant representative guides you with expertise through an important process.
- A qualified tenant representative has the market knowledge that is key to making the best decisions
- A qualified tenant representative has a firm understanding of the numbers and can interpret that data directly into how your business will be affected – like advising you on a strategy for growth in a particular market or even within a building. Tenant representatives can help you find cost effective locations using a financial analysis.
- Strong negotiation skills are essential to get the outcome you want. When negotiating, having representation lets the landlord know that you are considering alternative locations and are aware of comparable lease rates. This gives you a subtle kind of leverage at the negotiating table.
- Understanding documents is non-negotiable such as letters of intent, proposal, work letters and lease agreements. A tenant representative will know how to customize documents so that they will meet your needs.
Back to top
Important questions to ask when looking for a tenant representative
- Do you have any conflicts of interest?
- Are you a listing agent or primarily a tenant advocate?
- Do you have the time required for this project?
- Are you currently working on any other projects?
- What is the experience you have for the type of projects I am seeking?
- How many transactions have you handled for tenants in the past few years?
- What is your philosophy regarding negotiation?
- Are you up to date on conditions that affect the market?
- If there are any conflicts of interest how do handle these matters?
- How would you describe your professional reputation?
- May I see your references?
- Is an Exclusive Representation agreement possible?
- What is the protocol if I am unsatisfied?
- What commissions are expected?
Back to top
What are the signs that you’ve chosen the wrong Tenant Representative?
- None of the spaces you are shown are acceptable even though the sizes may fit your request
- A simple question of whether they can remodel a suite is ALWAYS answered with “YES!”
- Before ever meeting they give you a large computer print-out of every building around you and ask which ones you want to see.
- The name of the broker is in front of the buildings he or she is showing you.
- The broker is constantly calling ahead to landlords to check on availabilities while you are with him or her.
- After spending time together the broker can’t seem to remember your company name
- You find that you have spent a whole day with this broker and have eaten every meal with him or her.
- The broker’s car has a silly slogan on it
- He or she is always bragging about how many deals they have closed
The broker tells you that you will have first choice but it is you that has to make all the follow up conta
Back to top
Learn More: New York City Commercial Tenant Representation
Fair Housing and Equal Opportunity | Site Map | Glossary | NYS Agency Disclosure
