Real estate teams discover portfolio opportunities with market data and analytics combined with lease information to make more informed strategic decisions. The ability to review accurate data on available and existing leased properties allows companies to analyze and improve their real estate costs.
What categories of data are needed to make an informed leasing decision?
- Current property occupancy and rental rates
- Company names of other tenants
- Market and sub-market conditions – space availability and rental rates
- Additional rent costs
- Demographic information
- Critical Date Management: Renewals, notices, lease expiration
- Tracking lease options: Right to expand or contract space, right to purchase, first right of first refusal, required remodel by a specific date.
- Unforeseen events: Lease rights when in default, surrender the premises, concessions stemming from an event like a pandemic, and Force Majeure clauses.
When reviewing leases that are coming up for renewal or expiring, companies need to have access to comparable market rents for their current locations and other nearby properties. To negotiate the best lease terms, they need to know occupancy rate in their current locations and demographic details related to the surrounding area. CoStar Real Estate Manager combines critical data from CoStar Market Analytics, each customer’s properties and HR information. Clients can see the average rent prices for comparable premises by square footage, area demographics, available space, photos, and floor plans. They can also view information on spaces nearby that are being built, vacated or leased.
With CoStar data, companies can view a current tenant roster for their leased locations. This information could help support negotiations for critical events like COVID-19. By monitoring occupancy requirements and possible defaults related to co-tenancy, lease-required occupancy, tenant mix, and exclusive use, companies potentially could discover cost savings as defined in the lease. They also may be able to reduce year-end reconciliation costs based on lease negotiated occupancy requirements.