Corporate and retail tenants can better evaluate the sublease of excess commercial real estate lease with CoStar Market Data + Analytics and management applications at their fingertips.
Offsetting costs of excess space with subleasing involves gaining a thorough understanding of several important factors like market conditions and future needs. Tenant real estate managers make more confident recommendations and are better prepared to discuss the financial and practical implications of subleasing with the most complete and up-to-date information available from CoStar.
CoStar empowers tenant real estate managers with on-demand, unlimited and unfiltered access to market data and analytics on more than 6 million commercial properties. CoStar streamlines access to critical lease information and automates portfolio operations with industry-leading management applications recommended by more service providers than any other.
Here are 5 ways tenant real estate managers evaluate the sublease of excess commercial real estate lease better with CoStar:
1. Gain broader awareness of markets, submarkets and space alternatives.
Due to the dynamic nature of real estate, the key to successfully subleasing space is to first understand current market and submarket conditions including lease comps, space availability, demographics and more. Knowing how competitive every individual subleasing opportunity is guides the cost-benefit analysis for becoming a sublessor of each space.
2. Secure stronger negotiating positions for subleasing.
Market knowledge is key to favorable subleasing negotiations with prospective tenants. It is also important to have thoroughly researched market information when approaching landlords with intentions to sublease space if additional rent or market adjustments are contractually required.
3. Provide clearer guidance to brokers.
Well-informed tenant real estate managers work more effectively with brokers when considering subleasing as an option or marketing space to prospective tenants to secure the best deal outcomes.
4. Offer more value and cost savings to the business.
Tenant real estate managers offer more value to business units and financial leaders by producing effective and reliable sublease assessments with CoStar that include prospective rental rates, time frames for sublease, and demand or probability of occupancy. This enables better, more informed decisions about subleasing excess space.
5. Maintain better confidentiality for strategic planning.
Often companies want to keep real estate plans private and not signal to the marketplace or competitors their interest in moving locations or subleasing excess space. Having direct access to CoStar market information and applications ensures confidential strategic planning, as well as better alignment with real estate initiatives and overall corporate goals.
CoStar Market Information
Tenant real estate managers add and market sublease Properties directly into CoStar, ensuring brokers see availability. Lease Comps offers up-to-date rent rates and submarket conditions. Plus see the most active brokers and make connections with local professionals. Market Analytics enables an understanding of historic property performance plus forecasts of rent growth, vacancy and demand.
CoStar Management Applications
Lease Administration streamlines portfolio details to better understand current use and occupancy, while integrated CoStar market information allows users to see lease details and subleasing opportunities with other tenants within specific buildings associated with the portfolio. Once additional space is sublet, details may be added to track sublease tenant details including rent payments. Portfolio Planning provides a strategic view of tenant portfolios that combines headcount, lease and market data into reports that enable data-driven decisions and guide actions to create cost savings.
