Next comes the lease negotiation with all parties involved, which averages about four weeks, then the permitting process, which, prior to the preliminary plans, will require working drawings. After that comes the actual build-out, which averages 45 to 60 days. Broadhead noted the necessity of utilizing a broker in lease transactions, pointing out that experienced brokers understand landlords, know the local market, the prevailing options and concessions and can assess the pros and cons of various locations. Of course, it's a two-way street. The more information prospective tenants can provide us, such as their size requirements, what their needs are, their signage requirements and timetable, the easier it makes the job.
Budget is always a big question to take into account.
Tenants always underestimate. Ninety-nine percent of the time we end up educating the tenant on the entire process. Afromsky also noted that a business owner trying to negotiate a lease without a broker runs a risk of being taken advantage of by a landlord. The landlord's representative will try to get as much as possible per square foot. If they know you don't have a broker, they're going to quote you the rack rate.