With an expert in tow

The search for an ideal office can be a daunting task. The process is perceived to be a long and exhausting one and can be quite stressful too. For achieving this mission, one also faces the question whether an office broker should be appointed to assist or not. And whether the broker will really add any value to the process and the final outcome. Here are 10 reasons why you should appoint a broker for your office search:

• Landlord landscape: The real estate deal dynamics in any city or sometimes within each micro market in a city depend a lot on the way owners perceive their own situation, especially if these are large-scale property owners. A good office broker will know the landlord landscape very well in the target locations. Based on this knowledge, the broker can advise on the flexibility that an office occupier can achieve in the lease and also on the overall expectations that one should bear in mind from a long-term standpoint of being a tenant or owner in that market.

• Knows the nuances: There are several details that appear to be trivial in nature. However, since a lease is typically up to five years and can be renewed for up to a total of 10 years, these pointers that may seem insignificant can add up to a lot in the long term. An office broker will know these nuances and will help the occupier in negotiating them in the best possible way.

• Scale: Many office brokers are very active in the prime markets in cities. These brokers typically run a few assignments simultaneously. Whilst some corporations may assume these to be conflicting in nature, this very fact can actually benefit an office-seeker since the office broker can leverage overall business volumes and scale to the benefit of the office occupiers.

• Knows the timelines perfectly: An active office broker usually knows the history in terms of demand, pricing and also has a good sense of the upcoming supply. An able office brokerage team would also know the active requirements or ‘searches’ ongoing in a market and would hence have a good idea of the overall demand over the coming 3-12 months too.

• A reliable mediator: During negotiations of large leases or purchases, corporate occupiers often need to challenge the norms. A broker can immensely help in this process. In negotiation processes, which are sometimes long drawn, it is beneficial to have a mediator in between that can continue to push boundaries on your behalf.

• Multi-city knowledge: A large brokerage firm would typically be active in all major cities nationally. This can give the CRE office occupier an edge since this brokerage team would be able to share information and knowledge across the country and later. He/she can also help in the delivery of assignments across geographies.

• It’s cost-effective: Contrary to popular belief, office brokers don’t cost much. As a matter of fact, for many large-scale assignments, any large office brokerage firm will charge zero money from the office occupier. Fees are typically budgeted by the owners/landlords and the scale of the same can be disclosed to the occupiers on a transparent basis.

• Value addition: A CRE or an administration professional would have a hundred things on their to-do list. Getting an office broker to do the job for an office search will help you save precious time and money. Moreover, a professional office brokerage firm would happily help in getting technical due diligence done for shortlisted offices and also do financial analyses for offices for 9-10 years.

• Arm’s length distance for a non-core job: A real estate transaction is typically a non-core activity for any organisation.Also, since this involves high stakes and significant sums of money, it is advisable to have an arm’s length distance from this financial deal. Best to have this managed by a professional broker that knows the job and someone trusted that can conform to market norms.

• A needle in the haystack: Since a good broker would know the market very well, he/she can find that ‘needle-in-the-haystack office’ for you, which is in the right location, has a fair price and ticks most of the boxes in your ideal office list!

(The author is country manager, tenant representation, Savills India)