Kane Real Estate Services | The Tenant and Buyers Advocate

OUR SERVICES

NEW SPACE / RELOCATION DISPOSITIONS & ACQUISITIONS EXPANSIONS CAPABILITIES RENEWALS

NEW SPACE / RELOCATION

Securing new space creates the single greatest opportunity for a Tenant and/or Buyer to obtain a lease tailored to current and future business plans, whether it's the relocation of an existing office or establishment of a new office. The surest route to capitalizing on this opportunity is an orchestrated, arms-length negotiation through a single representative. As your representative, KANE provides plausible alternatives, simultaneous negotiations and an in-depth knowledge of the perceptions and realities of the market.

KANE extracts maximum value from new space negotiations for their clients by utilizing:

Current knowledge of the market forces at work including regional, national and international trends, comparable space comparisons, Landlord and/or Seller profiles, recent concessions and more.
Simultaneous negotiations to maximize competition with the Landlord and/or Seller.
Extensive experience identifying and obtaining favorable lease terms and concessions regarding free rent, above-standard improvements, moving expenses, renewal, cancellation and expansion options, base rent, tax, operating and utility escalations, subleasing and assignment clauses.
Financial analysis comparing alternate locations and other options for all clients.

EXPANSIONS

When a Tenant needs to expand (whether or not the lease includes expansion options) this is the most difficult time to negotiate future lease terms. Landlords reacting to a Tenant's expansion requirement will use a common tactic of leveraging the Tenant's existing lease liability, which adds prohibitively high costs to relocation. This strengthens the Landlord's negotiating position and achieves more favorable terms and conditions than the Landlord might otherwise obtain. To counter this market dynamic, the Tenant must evaluate certain factors before contacting the Landlord when initially setting the strategy for expansion negotiations. These factors include rates, terms, existing options, percent increase in size, and tenant improvements.

Tenants who have expansion needs should understand that the following options are available to meet the needs of a growing organization:

Take no action until the lease expires.
Lease nearby expansion space in a different building and use as a satellite facility.
Relocate to larger quarters in a different building and market existing space for sublease.
Lease additional space without extending the term.
Lease additional space or relocate within the building under the Landlord's terms (usually with a lease extension).

Premature discussions with the Landlord imply that the only viable options being considered are taking no action or leasing additional space under the Landlord's terms. As the Tenant Representative during expansion negotiations, KANE uses its experience and market knowledge to strategize and negotiate on a client's behalf—thereby ensuring that the client reaps the full benefits of their now greater value to the building owner.
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RENEWALS

KANE provides clients with several strategic advantages as Tenant representative during negotiations for
a lease renewal.
Your renewal is worth more than many clients think. Renewing an existing Tenant saves the Landlord the expense of finding a new Tenant for the space (the cost of advertising the vacancy, tenant improvements, etc.). By quantifying these savings to the Landlord, KANE delivers increased negotiating leverage, thus delivering a better deal for their client.
The power of being represented. Experienced Landlords and/or Sellers know that Tenants and/or Buyers negotiating with the assistance of a broker present a higher risk of relocation to another building. Similarly, Tenants and/or Buyers negotiating without a broker on the team renew over 80% of the time. Landlords and/or Sellers logically assume that "un-represented" Tenants and/or Buyers are not seriously evaluating other alternatives, so these Tenants and/or Buyers don't receive the full spectrum of concessions available in the market. The mere fact that a client has retained KANE for a strategic evaluation of alternatives brings forth more competitive proposals from the Landlord & Seller.
Understanding the numbers. Better information is the key to better negotiating. This includes intelligence on Tenants and/or Buyers seeking to sublet, lease expiration dates with sizes of related space, and pending relocations. By gathering market data and building- specific information, KANE provides the Landlord and/or Sellers position along with the opportunity for negotiation— and then develops the best strategies for the Tenant and/or Buyer.

KANE assists the Tenant and/or Buyer to evaluate their current lease and explore the possibility of a lease renegotiation transaction—the result of which might include:

Reduced current rent and occupancy costs
Locked-in predictable costs for the future
Reduced security deposits
Readjustment of operating expenses and tax calculations
Secured landlord dollars to expand or improve facilities
Achievement of more favorable business terms
Updating of obsolete lease documents
Secured favorable rights and options, to grow, contract, purchase, renew
Reduction or elimination of the securitization of your lease
Reduction or elimination of the guarantee of your lease
Increased length of your present lease term, for more favorable terms
Increased length or number of lease option periods
Reduction of the remaining time of your lease term
Increase or decrease the size of your leased premises
Obtain an option or right of first refusal on space contingent or near to your premises

DISPOSITIONS & ACQUISITIONS

Dispositions
Whatever the reason for disposal of space, KANE can evaluate lease documents to help identify a strategy and the issues concerning a sublease, cancellation, buyout or recapture by the Landlord and/or Seller. In addition to gauging the impact of market conditions, the lease review addresses restoration requirements, subleasing and marketing restrictions, and Landlord and/or seller notice and consent issues.
KANE can provide an opinion regarding the probability of the success of one of these strategies from a supply and demand point of view and can compare to the conditions of the master lease. Rather than turning to a Landlord and/or Seller's agent, appointing KANE assures the best buyout, recapture, or sublease negotiations. If subleasing, KANE's expertise puts the sublease space on a level playing field with space that might be on the market directly from the Landlord and/or Seller and competing buildings.

For a Tenant and/or Buyer seeking to dispose of real estate, KANE can:

Complete exploration of all available options for space disposal.
Prior to negotiations, analyze market conditions and the feasibility of available alternatives.
Provide a comprehensive present value analysis of the financial impact of alternatives.
Provide a sublease marketing program that includes:
- Mailings of data sheets and floor plans
- Broker and public internet database listings
- Phone calls, and personal canvassing of area tenants and brokers

Acquisitions
As the broker acting on behalf of a Tenant and/or Buyer searching to buy land or properties, KANE serves as the critical eyes and ears, identifying the range and limits of available opportunities. This assures a client that the opportunities identified are those that best suit their requirements. This is an appropriate time for a client to decide whether to purchase or lease. Kane has extensive experience in creating financial models showing a comparative analysis of whether leasing or buying is the appropriate choice based on the current market.
Kane also provides comprehensive market analysis and property valuation, exploration of availability on properties not formally listed, assembly of the most favorable contract terms from initial offer through final contract, and summarization of the pros and cons of various alternatives to facilitate the ranking of options available to help their clients in the final decision making process.
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CAPABILITIES

KANE utilizes the latest commercial real estate analysis software to maximize results and deliver the best value for its clients. These cutting-edge programs include the following:

	ProCalc ™ Financial Analysis Software - provides analysis and comparison of leases and sales from the perspective of Tenants, sublessors, Landlords and purchasers. The software allows Real Estate professionals to create cash flow analysis and compare any type of office, industrial, or retail leasing or purchasing scenario in minutes. The software analyzes, scrutinizes, and financially dissects a deal with great accuracy.
	CoStar Property Professional™ - delivers a complete inventory of office, industrial and retail properties in targeted markets, and includes more than 2.2 million images of properties across the United States. It delivers a nearly complete picture of Real Estate opportunities in the Tenant's desired markets and the information is updated daily.
	CoStar COMPS Professional® - delivers the most comprehensive Real Estate database in the nation with more than 200 data fields compiled and confirmed daily. This real-time sales transaction database allows Tenant Representatives to obtain an inside perspective on the latest comparative information on leased space anywhere in the country.
	CoStar Tenant® - provides more than 40 search criteria to examine the Tenant marketplace, giving Tenant Representatives a birds-eye-view of developments that can prove beneficial to their clients. Knowledge in advance, that may help Tenants to secure the space of a lifetime.
	DemographicsNow ™ - allows the analysis of demographic information and market potential data for any geographical area in the United States. The software can create custom reports, interactive maps and perform quick and accurate market analysis, among other features.
	GoToMeeting - GoToMeeting allows you to host an online meeting with up to 25 people – so you can do more and travel less. Using our web conferencing tool, you can share any application on your computer in real time. Attendees join meetings in seconds.
	FlowingData - FlowingData explores how designers, statisticians, and computer scientists are using data to understand ourselves better - mainly through data visualization. Money spent, reps at the gym, time you waste, and personal information you enter online are all forms of data. How can we understand these data flows? Data visualization lets non-experts make sense of it all.
	ARGUS - ARGUS Software’s products have become the industry standard and provide the complete solution for managing and growing your commercial real estate portfolio. More than 90,000 users in over 10,000 of the industry's leading owners, managers, financial institutions, brokerages and REITs trust ARGUS Software solutions to improve the visibility and flow of information throughout their critical business processes. These processes include asset management, asset valuation, portfolio management, budgeting, forecasting, reporting, lease management, collaboration and knowledge management.