Corporate and retail tenants evaluate commercial real estate lease renewals better with CoStar market information and management applications at their fingertips.
Renewals represent a significant revenue opportunity for landlords that want to increase rent rates without incurring more costs or losing tenants. Tenant real estate managers make more confident lease renewal recommendations and are better prepared to negotiate terms 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 renewal information and notifies key stakeholders to take actions with industry-leading management applications recommended by more service providers than any other.
Here are 5 ways tenant real estate managers evaluate commercial lease renewals better with CoStar:
1. Gain broader awareness of markets, submarkets and space alternatives.
Due to the dynamic nature of real estate, the key to successful lease renewal evaluations is to use CoStar to continually monitor market and submarket conditions – including lease comps, space availability, demographics and more – and to prompt team members to make decisions well ahead of critical deadlines. Obtaining a thorough list of space alternatives is also essential for evaluating current leases and comparing favorable options.
2. Secure stronger negotiating positions for renewals.
Market knowledge is key to favorable negotiations, but so is understanding the financial implications to landlords for lease renewals. Knowing how much landlords stand to gain by renewing leases relative to other building tenants – versus loose without renewals – puts tenant real estate managers in the driver’s seat during negotiations and help win back portions of landlord renewal profits.
3. Provide clearer guidance to brokers.
Well-informed tenant real estate managers work more effectively with brokers when evaluating lease renewal proposals, reviewing alternative space options and securing the best deal outcomes.
4. Offer more value and cost savings to the business.
Tenant real estate managers provide more value to the business during lease renewal evaluations by leveraging CoStar to review and make recommendations for employee amenities, space configurations, infrastructure, parking or transportation issues and more. Landlords may be willing to incur associated costs to update spaces and retain tenants. Most importantly, lease renewal evaluations are made more confidently knowing that the most comprehensive and reliable market data and analysis was used in the decision-making process.
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 acquiring additional 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
Properties provides the most complete inventory of spaces available as well as fully leased. View photos, aerials, maps, floor plans, stacking plans and more. Access true owner, broker and property manager information. Lease Comps offer up-to-date rent rates and concessions like escalations or free rent to negotiate with confidence. Plus see the most active brokers and make connections with local professionals. Lease Analysis calculates key metrics and cash flows to create lease proposal comparisons. Market Analytics enable an understanding of historic property performance plus forecasts of rent growth, vacancy and demand.
CoStar Management Applications
Lease Administration streamlines lease portfolio details to effectively manage critical dates and automatically notifies key stakeholders of pending renewal activities. Plus, integrated CoStar market information allows users to see lease details for other tenants within specific buildings associated with tenant lease portfolios. It also can automatically trigger Transaction Management with pre-configured renewal team projects that include workflows, tasks, milestones and document tracking. Portfolio Planning provides a strategic view of lease portfolios that enables data-driven decisions and guides actions to create cost savings.
Don’t already have access to CoStar market information and management applications?