Smart real estate decisions require advanced planning, evaluation, and implementation. Commercial Real Estate Solutions works closely with its clients during every phase of the real estate process to ensure that each business achieves its real estate goals. We manage details, control and coordinate activities, negotiate leases, and act on behalf of our client through an integrated process that has made CRES a leader in its field.
Thanks to CRES, real estate clients now have an expert team of professionals who will guide them through the real estate process from start to finish. No longer must they rely on independent service providers who become involved only at various stages of the process and who may lack the ability to effectively communicate and / or integrate activities. Strategic facility planners, lease negotiators, lawyers, architects, construction managers, and other service providers recognize the value of coordinating a project's activities from the very start. This is why they prefer to work with CRES.
At Commercial Real Estate Solutions we assist our clients by serving as their project facilitator. Our personalized services consistently save our clients 20 - 30% off their occupancy costs. We also save clients hundreds of man-hours and eliminate most of the risk associated with their real estate decisions.
REAL ESTATE PROCESS OUTLINE
Phase One: Real Estate
- Strategic Facilities Planning
- Goals and Objectives
- Architectural Programming
- Evaluation of Proposed Sites
- Market Research and Analysis
- Development of a Comprehensive Request for Proposal
- Evaluation of Proposal and Negotiation of Business Points
- Evaluation of Space
- Letter of Intent
- Legal Documents
- Tenant Build-out Process
- Space Planning
- Interior Design
- Construction/Engineering Document Preparation
- Furniture / Computer / Phone / Procurement
Phase Two: Project Consulting
- Value Engineering
- Competitive Bid Process
- Change Order Management and Negotiation
- Contract Compliance Auditing
- Job Administration
Phase Three: Relocation / Move Coordination
- Furniture and Equipment Relocation Planning
PHASE ONE: REAL ESTATE
Planning is the most important phase in the real estate process. It is the strategic roadmap that guides clients to achieve maximum success and savings. It must be done properly to accomplish optimal results. CRES is an expert in real estate planning.
Strategic Facilities Planning: This is the process where space requirements are defined and documented. During this phase we systematically evaluate our client's present user layout and analyze opportunities for improving efficiency. Planning includes understanding the needs and relationships among people, spaces, and equipment. This evaluation includes the following:
Goals and Objectives: We work with each client to prioritize the company's desired location, class of building, budget, ability to attract and retain employees, operational goals, zoning, and special requirements and objectives in confirmed space standards and planning principles.
Projections: We help clients project future space requirements for personnel and support areas. This service is invaluable to our clients since projecting employee growth is a major challenge for most businesses.
Architectural Programming: We work with clients to establish space standards and principles for individual and inter-departmental operations. This process also helps us determine our client's most ideal present and future square-footage needs.
We also analyze and document:
- Existing lease legal issues
- Early departure default provisions
- Holdover procedures and cost
- Sublease and assignment rights
- Restoration exposure
- Project budget estimates
Commercial Real Estate Solutions has extensive experience in every area of the real estate process. Our strategic Real Estate Planning Process is unparalleled in the Austin Real Estate Market.
EVALUATION OF PROPOSED SITES
The Evaluation Phase of the strategic planning process begins once our clients' real estate needs have been assessed. The next phase is to begin searching for a property that best fits those needs.
Market Research and Analysis: CRES prides itself on its research services. As part of the research phase, we locate properties and conduct personal interviews with building representatives in each target market. These interviews often enable us to locate potential lease space not currently on the market. As one of Austin's largest tenant representation firms, we talk to other tenants on a regular basis and often know a tenant is moving before the landlord has been notified. By tapping into this "hidden market," we give our clients a competitive edge when looking for the ideal space to lease.
Once this initial search has been completed, we provide detailed information on each potential location, including data on building amenities and location, rental rates and leasing concessions, current and future space availability, existing, in-progress, and proposed projects, alternative transaction structures, and the property owner's relative position in the marketplace.
Armed with this information, we take our client on a tour of all prospective properties. Following the tour, the client selects the properties with the most potential (typically from three to five properties). These properties will now receive a Request for Proposal.
Development of a Comprehensive Request for Proposal: The Request for Proposal (RFP) provides the framework for the negotiation strategy and lease documentation. It requires careful thought and planning to assure successful results. Because each property's market price is directly related to supply and demand, CRES must develop a strategy that gives its client negotiating leverage that yields favorable results. The RFP will be based on information obtained in the planning and market research phases. It typically incorporates the following:
- Specific definitions of all requirements and objectives developed by the client and CRES.
- Careful analysis of available market alternatives and future projections to
accommodate these objectives and requirements.
- Outline of the negotiation strategy that will ensure our client's objectives, space requirements, and savings are met.
At CRES, our goal is to achieve maximum negotiating leverage for our client so that landlords and sellers respond favorably to the proposal and proceed forward, leaving no issues left to be resolved at a later stage when a list of competitors has been shortened.
Evaluation of Proposals and Negotiation of Business and Financial Points: CRES analyzes and clarifies each proposal to assure that all alternatives are presented accurately with market comparables. Our analysis will include a quantitative comparison of each property and include important qualitative and subjective considerations to encourage landlords and sellers to negotiate.
CRES works with its clients to develop a negotiating strategy that will yield the most favorable, available space options. We accomplish this by carefully controlling all communications and preserving a competitive environment until a final selection is made. Clients can count on professional, confidential negotiations handled with integrity.
Evaluation of Space: During negotiations, each prospective property develops a space plan of their building with our client's requirements. Because no two properties are the same, square footage needs may fluctuate up to 10% or more from one building to the next. In order to provide our client with an accurate financial analysis of each property, we must know how much space is available and how many square feet our client needs to occupy.
CRES brings extensive project consulting experience to the negotiation table. Landlords recognize that we understand construction costs, capitalization structures, building proformas, and evaluation methodologies. More important, we understand how landlords determine their bottom lines and what they can and should be able to offer. As a result, we consistently achieve savings for our clients that average 20 to 30% off our clients' occupancy cost. Our negotiations also remove much of the risk associated with a lease transaction.
By the time the Implementation Stage is reached, the preferred building has been identified and basic business points agreed upon. The success of these decisions is now controlled by our Implementation Process. In order to achieve a seamless transition, CRES must continue to meet costs and time constraints while coordinating the following functions:
Letter of Intent: The Letter of Intent (LOI) is the culmination of all prior negotiations. It tells the owner that under the following terms and conditions we will conclude our negotiations at this building. It spells out in detail rental rates, build-out allowances, renewal and expansion rights, operating expense caps, service interruption rights, etc. This document will form the framework of the lease document.
Legal Documentation: Our legal advisory services ensure continuity of documentation and greatly improve overall document quality. This process will save our clients time and legal fees and will also produce a far more favorable transaction. We are experts in tenant-oriented lease negotiation documentation and can add tremendous value to this process. On average, we save our clients $5,000 in legal fees.
Tenant Build-out Process: When the lease document is fully executed, the space planning process should already be in motion. This phase will coordinate our client's requirements, as determined in the planning phase, with the selected building to produce an efficient, cost effective space plan. We will work in tandem with the selected architect to assure an aesthetically pleasing and value engineering design. It is important to reiterate that significant benefits are achieved as a result of integrating the architectural team into the process at an early stage. Knowing the history of why a direction was taken and being part of the decision process gives the architects a significant step up in accomplishing the design objectives. We will organize the following services:
Space Planning: Architectural design and layout of the space requirements
determined in the strategic planning phase into floorplate(s).
Interior Design: The character of the architectural elements of the space
determined through the selection of finish / materials.
Project/ Engineering Document Preparation: Detailed documentation
of the functional requirements of the space plan and interior design into
individual architectural, mechanical, electrical and plumbing draws.
Furniture/ Computer/ Phone/ Procurement: The incorporation of furniture and
fixtures into the overall design plan and if needed, the sourcing, selection and
purchasing of such furniture/fixtures.
PHASE TWO: Project Consulting
CRES is available to our clients during the Planning Phase for project budgeting and scheduling. We can also provide assistance during the Evaluation Phase for value engineering. Our involvement reduces inherent "timing" risks associated with the construction process, lowers project cost by an average of 5 - 10%, and returns 20 to 30 hours per week of client time back to the company. However, the majority of our work occurs immediately prior to, during, and following construction. Commercial Real Estate Solutions - Project Consulting (CRES - PC) will provide the following services:
Value Engineering: Evaluate design specification and potential cost-saving alternatives to accomplish equivalent objectives.
Competitive Bid Process: Pre-qualify and select general contractors to guarantee quality and competence. Qualify, evaluate, and negotiate bids for their market competitiveness and completeness.
Change Order Management and Negotiation: Monitor and negotiate all change order items to assure cost containment and eliminate change order abuse.
Contract Compliance Auditing: Provide complete audit of all invoices, lien wavers, warranties, and lease language to assure accurate cost responsibility and disposition of funds.
Job Administration: Supervise and inspect during the entire construction process to assure conformity to schedule, plans, and specifications.
These services ensure adequate representation for our client during construction and ensure a finished product that is consistent with the client's overall expectations, below market cost, and within the established time constraints.
PHASE THREE: RELOCATION / MOVE COORDINATION
FURNITURE AND EQUIPMENT RELOCATION PLANNING
CRES offers relocation services for our clients. These include move coordination, data center relocation, telephone systems and furniture systems price negotiation and evaluation, and other comprehensive services specific to the actual move. These services help reduce frustrations and business interruptions caused by office relocation.