On the move: leasing strategies for today's market.

• Position: How-To GUIDE

Utah's office market has changed over the past two years based on the nation's economy; as a result, leasing strategies must be adapted to meet current market realities. There are negotiation strategies which become increasingly important as the Utah leasing landscape has changed from a landlord-biased to a tenant-biased market.

Real estate brokers use the following strategies to obtain the best economic deals for their clients:

THE CLIENT'S BUSINESS OBJECTIVES

A real estate broker needs to fully understand his or hers client's objectives. Those could include location, amenities, price, parking, building infrastructure and location as it relates to fiber, generators and the electric power grid. Clients in today's market must create a better bottom line based on corporate needs of being more efficient and reduction of operating costs.

TRANSACTION LEASE SAVINGS

It is important to have a base of recent lease comps, have a strong system of office brokers and contractors to determine how costs will affect a transaction, as well as a program of the client's needs so an architect can determine a space plan. This method saves a lot of time and money in a client's initial search phase, as well as the cost to buildout the space.

CONCESSIONS

In today's market, clients can receive such items as moving allowances, free rent, tenant improvements, more parking and sometimes lower rent. If a tenant is considering a renewal as compared with moving to a new or existing building, the client must consider the cost to move, in order to evaluate which makes economic sense.

[ILLUSTRATION OMITTED]

LEASE BUSINESS TERMS

The most important economic term of a transaction is the lease rate. In addition, operating expenses is a scrutinized area of a lease that requires attention. If the landlord charges for parking, this can...