How to Negotiate a Commercial Office Lease


Do you remember being 16, maybe 17 years old,
you’re living with your mommy and your daddy and every time you wanted to do something,
your mom and dad would say, “We pay the rent here. You do what we tell you to do.” Well, when you turn 18 and get your own apartment
complex, you live in your own place, privacy, all this stuff, it feels good, doesn’t it? The same goes with you as an entrepreneur
when you finally go and sign your own lease and you feel free because this is your business,
this is your place of operation, you get to do what you want to do with your business. Now, prior to doing that, my goal today with
this video is to make sure you are as equipped and educated about signing a lease, because
I think after watching this there’s not really a book you can read bout leases and all that,
because it would never sell that many copies. But in this video, my goal is for you to know
exactly A-Z what you need to know as a tenant with the brokers motivation, the landlord’s
motivation, everyone’s motivation so when you go into it, you’re educated, you don’t
get ripped off, you get the best deal, and get the best possible thing for yourself. So today’s video is directed to three different
types of people. One, you don’t yet know if you’re going to
have an office. You’re an entrepreneur, you just want to get
educated about office leases. Great. Two, you’re about to sign your first office
lease and you don’t know what you’re doing. Or three, you already have your own office
lease, but you want to know if you did it right or wrong so the next time you don’t
make the same mistake. So, I want you to know that everything I talk
about in this video is from many mistakes I’ve made, and many leases I’ve signed. I’ve signed millions and millions and millions
of dollars of leases over my career and I started off small and built it to what it
is today. So let’s get right into it. A few things you’ve got to keep in mind as
you’re about to sign an office lease. First things first, let’s solve for X. One, how much space do you need? Realistically, how much space do you need
and when you think about how much space do you need, not how much space do you need today,
because if you’re going to sign a 36-month lease, it’s almost asking yourself how much
space do you need 12-18 months from now. Because you need a little bit of room for
you to outgrow your office, but you don’t want it to be way too big. You don’t want it to be way too small. You need to plan for 12-18 months. Number two, location. Where do you want it to be? Does it have to be near a freeway? Does it matter if it’s near a freeway? Do you want it to be in a place where all
the traffic comes? Do you want it to be in a shopping center
where it’s right by the mall? Do you want it to be in a mall? Where do you want it to be? Where’s it suitable for you as a location. Three, affordability. What can you afford? What is the number that you can afford right
now and the way to calculate this is how much money do you have set aside. So, if your expenses are going to be $4,000
a month, and you take your personal expenses, whatever it’s going to be, do you have that
saved up for six to 12 months? Because they’re going to ask you for first
month, last month. Sometimes they ask you for first, second and
last month. It depends on if you have experience, how
you negotiate. Now keep this part in mind. Anything when it comes down to commercial
real estate, it’s all negotiable, all of it. There’s so many creative ways to do it. No two deals in commercial real estate are
ever the same. Number four, term. Twelve months, 24 months, 36 months, what
is your term? Five is traffic. Do you need parking? So meaning is there going to be a lot of employees
that are going to be parking their car? Do you want it to be the type of parking where
it’s $1.20 per hour that people come in and the gate goes up? Do you need security? What is it that you’re looking for with parking? Foot traffic meaning is it a place that a
lot of customers are going to come in and if it is, then you need a nice office space. If it’s not, who cares if they’re not going
to see it because it’s a call center, there’s not really going to be any customers that
are going to come and buy from you. So you need to know that part because it’s
a big difference on price point that you get to save. Then last but not least, legal. You always want to, whatever you do, whatever
deal you get, even if your commercial real estate agent, your broker says, “I’m going
to have my legal look at it,” I always recommend you spend $200 – $400 to another attorney
that’s not emotionally attached to him [broker] because to them, their attorney’s going to
look at the deal that benefits you, but still at the same time it’s the deal that’s happening
here with the broker. Get a non-interested attorney to look at the
entire deal before you do anything. So a couple of basic things about office space. You have basically three different types of
office space you’re going to get if you’re running a commercial office space. Type A, type B, type C. You keep hearing about
this. People ask, what is type A, type B, type C? Type A is newest building. It was built in 2009, in the most traffic
place community is type A. Type B may be it’s a little older but it’s
in a decent community. So it was built in 1981, but it’s in a decent
community. It could be type B. Still presentable, still
clients can come in, customers can come in,, but it’s not the sexiest. Then there’s type C. Type C is oldest, worst
location, not a desirable place is type C. By the way, I’ve had a type C, type B and
a type A office. I know all of them. And I know exactly what the benefits, pros,
cons, pricing wise that it is to go in each one of these things. So you need to know about them. Now, let’s talk about rent. A lot of times you’ll hear this language about
single net, double net, triple net, full-service gross. Pat, what does it really mean when the commercial
real estate agent starts talking about this? I’m kind of confused. So a couple of things to keep in mind. You rarely will see single net being done. This is when the landlord pays the entire
rent. This is when the landlord pays the entire
rent, entire expenses. So, for instance, if you have taxes, insurance
and maintenance, they’re covering all that. You’re not paying any of that. It’s all on them. They’re saying, “We’re willing to take single
net.” You’re not going to find that a lot. Maybe in another country you live in, you’re
not going to find that a lot in America. Double net is where you’re only paying taxes
and insurance. Triple net is you’re paying taxes, insurance,
and maintenance. Then obviously full service gross, you’re
paying one check, it covers everything, full-service gross. It kind of works out that way as well. I’ve done all of them myself. Typically commercial’s going to be double
or triple net. That is very common to be hearing that. So now, credit wise, my first office lease
I signed, I’ll never forget this. I was in an office that I was renting from
other people, and this place was horrible for me because I couldn’t grow. I had no control. It was driving me insane. And I had no authority to say anything about
the office that I had. So I want to do this, no, it’s not your office. I want to do that, no. Kind of like the whole thing of living with
mommy and daddy, which they have all the right to do that. So one day I made a decision. I’m saving money. I saved my money. One night I’m talking to one of my agents,
a guy named Oscar. If he sees this he’ll remember this. I said, “Oscar, I want you to put me in front
of somebody.” He said, “I don’t think this is for me. I’m having a hard time with sales and this,
this that.” He wanted to go become an agent for sports
athletes, which he eventually did. He became an agent for famous soccer players. He said, “I’m just not good in sales. And I don’t know if I can.” I said, “Introduce me to one person before
you say this isn’t for you.” So that night we get in his Volkswagen. We go to Granada Hills. I go to this Type C office building and we
go into this place and the guy we meet is a guy named Shane. And I walked in and the entire place is dark. This is ’07, ’08, the mortgage crisis is already
taking place. This guy was killing it. He no longer is. And I go to his office. We end up doing all his investments, savings,
insurance, all this other stuff. And at the same time, I say, “What’s going
on with this office?” He said, “Man, I can’t do anything with this
office.” I said, “What’s your plans with this office?” He said, “I’m trying to lease this out to
somebody.” I knew my credit was bad credit. So I knew a building’s not going to give me
a direct lease. So I had bad credit, I need a sublease. We started talking, he and I. I remember vividly
what price point I got, what I paid for it. How it worked out. So I got the lease away from him. I paid for the rent. I paid for the electric. I paid everything. He ended up getting good deal because I didn’t
know what I was doing at that time with leases. But I ended up getting a good deal because
I didn’t have a whole five-year lease that I signed. I got a shorter sign and it worked out for
me because I didn’t have good credit. So it allowed me a way to build credit with
a building and start moving myself up in the business and all this other stuff. So that worked out for me. I stayed there, grew incredibly well until
eventually we got evicted out of that office because we grew extremely too fast and then
I had to go get my next office space. Let me get into the next point I want to make
to you here. So motivation, motivation, this is very important
for you to know. What is your motivation? What is the broker’s motivation? What is the building owner’s motivation? Extremely important you understand this part
and what relationship you play. I coach entrepreneurs all the time about this
here. Okay, so hear me out. First of all, what is your motivation? Your motivation is to get exactly the amount
of space you’re looking for, with exactly the floor plan, you know, the way you want
it to be done, which means TI – you’ll hear this terminology. TI, that means tenant improvement. You want them to set up the office in the
way that you want it to be set up, without extending the lease too far. Okay. So you want it to be three years, with TI,
with office set up the way it is, with the lowest amount of expenses you’re paying, and
that’s your motivation as a person that’s getting an office space. Now let me tell you the broker. Brokers go with you, some of the brokers are
going to watch this. We had, who were these brokers that showed
up the other day? Real nice guys, four brokers came, they’re
Valuetainment followers. They were in our building and showed up from
out of nowhere. Four classy guys. And I’m talking brokers can be watching this
right now and I highly recommend you guys share this with other commercial real estate
agents. Brokers commission works this way. The longer the lease, the bigger the space,
the higher dollar per square feet, the bigger their payday. Let me simplify the math for you. Let’s just say the space you get is $3,000
a month. And you sign a 36-month lease. $3000 x 36 is $108,000. The commission typically is 6%. Six percent on the $108,000 is $6,480. Let me tell you how this $6,480 gets split
and who pays for it. Half of it goes to your real estate agent,
that you don’t pay for. The building owner pays for it. The other half goes to the broker that represents
the building owner. So when your broker gets half of this [$6,480],
and the building owner’s broker gets the other half. So $3,200 goes to your broker, $3,200 gets
to the building owner’s broker. You don’t pay for it. They [building owner] pay for it. Now, if you’re on the complete opposite side,
and you’re subleasing your space to somebody else, you are paying this $6,480 to the two
because now you’re becoming the lease owner, not them. Keep that part in mind. Now, let’s talk about the broker relationship. I’ve had many different brokers in my career
and they’re pretty interesting. One personality I had, let’s call this guy
Hal Cook. I would call this guy probably the sleaziest
commercial real estate agent I’ve ever dealt with in my life. And so let me tell you what happened with
this guy. He came in and I told at the time when we
signed this lease, I told him, I signed this lease that was a six-year lease, I told him
I only need it for three years because I’m moving to Dallas, Texas. He knew it. So he came and he pushed and said, why don’t
you take this part for three years, and take the other part for six years but what we’re
going to do is we’re going to put a cancellation on the 36-month so we can make this work and
cancel it and then you can go to Texas, because that’s what’s going to happen. No problem. So it came to we signed everything. The contract ended up being a million and
a half or two million dollars so do the math here on six percent. Okay? He made I think $84,000 or some number like
that that was paid out. He made a lot of money. The guy that was working the lease at that
time with him later on came back and said, everybody hates working with this guy. That guy even left him because of the way
he handled the whole thing. Now watch what happened. Experience with this broker. He did it with his own commercial real estate
company. So he called himself John Doe’s, Hal Cook’s
realty. Let’s just say hypothetically that’s the name
of the company. Okay? So he called this company that name. He was the only employee. When it came down to the three years that
I had to leave to Texas, he wouldn’t answer my phones, he wouldn’t call me, and he told
me he had a heart attack. So then I went to the landlord and I said,
wait a minute, this guy told me he had a heart attack and another guy named Tony told me,
what are you talking about? He never had a heart attack. He was just showing a property this week. So then he says, I can’t help you because
my wife told me not to help you. This guy disappears. Obviously, a crook. And the whole story why I’m telling you this
in business is you’re going to face guys like this. And I call them the way it is. I’ll never forget. I call them the way it is with how this guy
handled the entire deal. This is the point I’m making to you. My suggestion, don’t get a broker that is
not tied to a bigger company. I would much rather hire somebody that’s tied
to CB Richard Ellis that’s a very big company and know that if my real estate agent ends
up quitting the industry, I can always go to CB Richard Ellis and say, “I need your
help for your attorneys to look at this and help bail me out of this.” Because this guy was a nobody, and a one-man
shop, I got stuck with this lease. So I ended up paying it, the whole million
and a half, you know, two million dollar lease, whatever it was. We’re good to go because we’re going to hold
our commitment. But that’s the broker side. Now let me give you another guy. Another guy name I had, a guy named Jared. Absolute stud. He made one mistake. He took one lease of mine that he said he
knows the Glendale market very well. He didn’t. So you need to know whoever your broker becomes,
what city they’re experience is. Listen. Brokers are salespeople. They’ll tell you they know everything about
every market. They do not. Everybody has a specialty. So ask them what is your specialty? What market, what city, what zip code. Let them tell you. If they tell you everywhere, don’t believe
it. It’s a lie. Ask them, give me specific zip codes that
you work very well. So find commercial real estate agents that
are dominate in the specific zip code that you are trying to get an office space or lease
your office space to somebody else. So I like Jared. He was a hustler. He worked hard. He answered. He was all good. He just took one bad lease. I gave him a lot of leases. I think he’s done four, five, six, seven,
eight, ten leases with us. Good guy. Now, let me give you another relationship
about brokers you’ve got to know about. Just so you know, the building owner’s broker
and your broker. I know this is going to sound strange and
the commercial real estate agents are going to think that I’m crazy when I’m saying this,
they’re on the same damn team. They’re on the same team. Do you know why? What do you think they both want to happen? To close the deal. And how big of a lease do you think both of
them want to happen? As big of a lease as possible, square footage
wise, as high of a number as possible, as long of a term as possible makes both of them
more commission. So the only people that are on the same team
are the building owner’s broker and your broker. I know this is very weird, but that’s exactly
how it is. Even if that broker tells you that’s not right,
that’s exactly how it is. Okay? So the way they talk to each other, they go
like this. They go and say, hey, what do you think this
is a bad. . . all this stuff that they use in negotiation
language. You know him where’s he at? Does he like this space? Obviously he likes this space, so what are
we going to do? They go talk, they strike up a deal, then
you sign the lease. Let me tell you what I got them to do. And then they come and talk to you. Okay? Just know these two brokers are on the same
team. You’ve got to understand that part. Nothing wrong with that, but don’t be naive
and thinking your own broker is fully on your side. They want a longer lease to make more money
on it. So now let’s go into the building owner. The building owner’s trying to keep this property
because they’re building equity. Every year somebody else is paying the rent
for them to the building they own. They’re building more equity, long term, they’re
building a bigger portfolio. The more income comes in, the more properties
they can leverage, the more assets they can leverage. They’re simply running the capitalistic system. They’re doing their part. They have no involvement except for leasing,
making sure 100% of the office space is being rented out. So an office space that’s above 90% they don’t
need you that bad. An office space that’s less than 70%, they
need you tremendously. So it’s always good to ask what percentage
of this office is occupied already? They’ll say, we’re around 70%. It’s on your side. Oh, we’re at 92%, it’s on their side. So if you really want to be in that building,
you’re going to pay premium. Know that position. Occupancy. What is the occupancy rate in the office right
now, in this building right now? They’ll tell you. So I’ve worked directly with building owners. I’ve worked with bigger building owners where
I only dealt with the broker. But regardless, you kind of want to know what’s
going on. Now another thing when you’re dealing with
building owners you’re leasing out of, sometimes if the company you’re working with that owns
and manages the building is public, they’re cutthroat. They are cutthroat. Douglas Emmett, cutthroat. There is no wiggle room. You don’t matter as customer service as much
because to them it’s shareholders. Cutthroat. So especially when they need to do a lease,
right before the quarter, they’re not letting you go because it goes on the loss statement,
and they don’t want to show that as hey, we had to let this lease go. There is no listen, I’m going through challenging
times with my family, I want you to work with me. Zero. If they’re public. If they’re private, they’ll typically understand
you a little bit more, so in this scenario, I’d prefer going into building spaces that
is privately held, not publicly held. And you’ll understand that as you research
this a little bit more and you go from experience you’ll get a better idea what I mean by this
part here. So I covered this, I covered that. I covered the broker side, relationship side. Okay, let me tell you what recently happened
with an office space I’m dealing with, on how creative these things can be. So, we currently have outgrown this office
space. It’s pretty obvious, everyone’s climbing on
top of each other, we can’t fit in this place anymore. And when we got this lease, 15 months ago,
14 months ago, is that about the timeline? Fourteen months ago, when we moved here from
Dallas, we needed an office space. CB Richard Ellis came and helped us out. They did a great job. Classy people on what they did. We like them, at least the people that were
working with us, we liked them. And it all worked out very well. Beautiful building. I think this place is 98%, it’s one of the
most desirable buildings in Dallas. Morgan Stanley’s in here. It’s all the hedge fund managers, the money
managers and type A. It’s right off the freeway, great location, Galleria. It’s exactly where you want your office space
to be. But we’ve outgrown it. And if I wanted to take an office space within
here, it has to be completely on the opposite side. It’s pretty technical. So we found out, we went and looked at a couple
of buildings to buy, and some of the buildings we wanted to buy right now it’s kind of over
market price because Texas real estate is doing well, so everything is a little bit
higher. And no one’s really selling anything right
now because everybody’s keeping it because all these companies are moving in. So you’re paying 30% more than you would typically
pay to buy a building. So we said, no, we’re not going to buy a building
right now. We were almost close, we almost made an offer
to this one building, 40,000 square foot building but we said no, we’ll pass on this. So all of a sudden, we found out about this
other office space. It’s a massive office space. It’s pretty much an entire floor, somewhere
around 20,000 square feet. And we go in and their motivation and our
motivation is a different motivation. They’re motivation is they moved to Arizona. They don’t need as much space here anymore. And they just need a smaller office space. We need a bigger office space. So we went in and we struck up a deal. The entire place is beautiful place, incredibly
taken care of. Training facility, offices, kitchen, it’s
just a ridiculous place, how it’s set up. You’ll see it here when we do it. So the way what happened is there was a commercial
real estate agent representing me, a broker representing me that I hadn’t yet signed a
commitment with them. I met with them. He didn’t know a lot about commercial real
estate. Sweetheart, great man, Christian guy. But he didn’t know a lot about commercial
real estate. I was asking him questions. I said, “How long have you been doing this
for?” So he came from a different real estate side
and he’s trying to do commercial real estate. And he sent me an email saying, “I don’t think
you need us” so this time we didn’t use a broker. So the whole money’s being made by the building
owner’s broker. Long story short, long story short, the tenant
currently that wants to lease me the space, his broker that he and I spoke, I just didn’t
like this guy, the way that he approached us. I said, look, I can’t deal with you. And I said, we’re not doing the deal. I have no interest in doing the deal. he started giving me the whole thing. Everybody wants this office space. It’s the best thing in town and all this other
things. I said, “You’re overpriced!” You have no idea what you’re talking about. I said, “Educate your client! Educate your client! You are doing a disservice for not educating
your client. Tell them what’s going on in the marketplace. What is the sublease rate right now in the
marketplace? What are you doing right now with this office
space? Tell them!” No, you don’t know, we’re going to get this
thing leased in the next couple of weeks. It’s a beautiful building. I said, “Really? Then why is it you’ve had it on the market
for six months and this person’s losing forty-some thousand dollars a month and you have it in
the marketplace, whatever the number is, you have it in the marketplace.” No, we’re going to keep it. I said, “great.” I set him aside. So one day I’m going home, I said, you know
what? I’m going to go meet with the CEO directly. That’s what I’m going to do today. So I talked to Tom. I said, guys, I’m going to go meet with the
CEO. And I said, let me just call him first before
I go visit him. I texted him and said, “hey,” I found out
his number. I said, “do you mind if you and I talk? I called his home office, 800 number. I finally got to the CEO. And I said, I want to speak with the CEO. Very nice guy. And I said, “Hey, this is Patrick, Patrick
Bet-David. I want to rent out your space. Do you mind if you and I deal together? I don’t want to speak to your commercial real
estate agent. Although you signed a contract, which means
you have to pay him the commission. But I think you and I need to deal direct,
because I don’t have a real estate agent representing me right now. Are you okay with that?” Yes. I went through the whole scenario. Everything I did the math for him. This is what I need, this is what I’m willing
to pay, if you don’t do this, I already have another place I can go to that I can build
it out exactly how I want. I went through every single thing with me. This is my situation. This is where I’m at. This is what I’m offering you. I want you to spend the entire weekend thinking
about it, but here’s one caveat. He said, “What’s that?” I don’t want you to call your commercial real
estate agent. He said, “What do you want me to do?” I said, I want you to call other commercial
real estate agents in the marketplace and I want you to act as if you’re me, trying
to lease your space. Give them all the details that you know about
your office space. And you ask that commercial real estate agent
that’s not emotionally involved or money-wise involved, ask them. Is it a fair deal that this guy is giving
me? I said, act like that. He said, “That’s a great idea.” I said, then call me Monday and you tell me
if you’re really giving me a good offer. It took the weekend. I got a text on Monday. We get on the phone. I said, “What happened?” He said, “You were right.” I said, “Cool. Do you want to meet up?” Yes. We sat down. I met with him. It’s a very big company. Me, him, his CFO, all these guys, we’re sitting
there. It’s just me by myself, no real estate agent,
they’re all there together. And we negotiated something. I said, “This is what I’m looking for.” Now, here’s how I want to negotiate.” He said, “What’s that?” I said, you need office space, right? He said, yes. I said why don’t you take my existing, let
me take yours, and I need this to be done to this office space and I need this, this,
that. And we’ll make it work, but you come and take
our office. Look how creative that was. I have to leave here, but I still have a year
and a half on this. He took over my office space, I got to exactly
what I wanted, right, and what we needed. And he got exactly what he needed, because
he doesn’t need 20,000 square feet. He only needs a smaller office space for himself. That arrangement was made. Why am I telling you this story? The reason why I’m telling you this story
is because sometimes you got to know who the broker is and how brokers deal. You’ve got to know that part. Number two, sometimes it helps to deal with
the CEO directly. Now some people may say, “You can’t do that”
and all this other stuff. You cannot do it, but CEOs talk to CEOs all
the time. I would rather sit with a CEO and say, hey,
you know math, yes, I know math as well. Let’s go through it. If we don’t have a deal, I don’t want these
middle men to go back and worth. Can you and I do the deal together? Great. So we did that part and it worked out for
everybody. And then last but not least, the reason I’m
telling you this story is to know that never let a deal just say, “Oh, it’s not going to
work out.” Get as creative as possible, offer as many
different solutions as possible, and see where it leads to. That’s the beautiful thing about commercial
real estate. No two leases ever will be identical with
everything. There’s always something that’s different
about a lease versus another lease. So having said that, I’ve got a few questions
about people telling me about signing an office lease and how do you do it, how do you not
do it, what mistakes. I have a lot more stories. But I’m not going to cover it here with you. I wanted to give you as much as you needed
in this condensed time. Paul, what’s our time right now? Where are we at? Twenty three minutes? I wanted to make sure you knew enough so when
you went out there, you’re educated, somebody can’t bully you and take more money from you,
and you can get exactly what you’re looking for if you go out there and solve for x. And with that being said, I got my pillow
here. Last time we did a pillow out of the Cosmopolitan
hotel – what hotel were we at? Caesars Palace. Today we got the legit pillow from our friend,
Jennifer Mac. I haven’t mentioned your name for a while. Hey, the channel’s at I think right now 258,000
subs, the channel’s at 258,000 subs right now. Our goal is to get to a million by the end
of the year. I love the contest that’s announced. Already you guys have posted your video for
the quarter million contest where 10 of you guys from all over the world will come and
spend a day with me for me to go through your business plan. If you haven’t yet participated in that, what
do they type in? Can we put an image of it here? What is it called? I am an entrepreneur contest? If you type in “I am an entrepreneur contest”
you’ll see a bunch of the videos. And one of you, if you win the prize, I come
to you and I study your entire business and give you direction on what to do. And I coach you once a quarter. You don’t pay anything for it. I’m simply coming to you to help you grow
your business. But I’m going to choose only one person. So if you haven’t subscribed yet, be sure
to subscribe. Click the button here to subscribe. And click on notification. You’ll see that little alert button, click
on that to be part of the notification quad. You’ll be part of the first group of people
that get these videos that go out to you. Man, I can’t wait to hear all these different
office lease stories that you may have down here, and any questions, thoughts you may
have, comment on the bottom as well. Take care everybody, bye bye.

100 thoughts on “How to Negotiate a Commercial Office Lease

  • Man this is what they don't teach us in colleges
    Valuetainment is the no ONE stop for ENTERPRNEURIAL education
    thanks for the great content I learn a lot from this video
    keep it coming

  • love valutaiment i am 14 years old and i am in the notification squad!!!!
    Can you give me a advice on how i can learn sales at 14 years old??!!!

  • Patrick Please include video of lower quality too. I am from a third world country where internet speed is not too great and watching your video at 1080p which gives a real headache here. By the way, great fan of you. Watched each and every single video of yours. And trying to adopt your words. Hey, I was setting up my first new office space and there comes your video that exactly suit me right now. Thanks partick 😉

  • You guys should make a video on creating and presenting to investor(s) a killer business plan for a start up!

  • I'm so blown away. This is REAL practical advice! Would have paid a 1000 dollars to have this lecture!

  • to find lease

    1. how much space(plan for future)
    2 location
    3 affordability(u can negotiate
    )
    4 term (how long)
    5traffic (parking) and
    foot traffic(to see how good it needs to look)
    6 legal (get noninterested attorney so fair for everyone)

    office types 3types
    1a new
    2b middle
    3c crappy

  • rent 4 types

    single net-rare landlord pays entire expenses taxes water etc.

    double net-u only pay taxes and insurance

    triple net-u only pay taxes insurance and maintance

    ???full service gross only 1 check for everything

    if u have bad credit use a sub lease to pay

  • motivation is very important find the motivation of everyone so u get right deal

    tenant improvement is TI

    the loger the lease the more u get the more they make so dont get tricked

    commision is split to seller so 6480 commision
    half to ur broker
    half to building owners broker
    ●they r on same team●

    broker are tricky they try not to break deal so they get ur money so u cant cancel

    get a broker thats tied to big company so u cant be tricked
    (no 1 man shot)

    brokers only know little bit of market like certain zipcode

    ask for salespeople that are very specific where they work

    keep in minde both brokers want most money no matter what

  • ask what percentage of office space is being used know that is 90 percent theyre fine but
    30 percent they need tou to maximize profit

    cutthroat if ur public they only want money they dont care but privately is better they understand better

    ●educate ur client●
    tell them why its overpriced etc.

    if broker is annoying u can deal with ceo etc. and make it easier for them

    u can use other people if ur asking for good deal if theyre stubborn

    u can also trade office spaces if u want

    never get a deal broken get creative

  • Can you please do a video on choosing an industry? This is something I am struggling with at the moment and I'm sure others are too.

  • I am right in searching stage and I think I found just the right lease. Great timing for this content Patrick. Cheers

  • Brokers are like attorneys/lawyers, they put up a bad guy good guy show to bamboozle their clients, but ultimately end up working for the same agenda –> their payout.This is why if i ever use any of these broker or attorney persons, I'm formatting every deal on a contingency commission, meaning they ain't getting paid until they accomplished a deal in favor 'mostly' for ME!

    Thanks so much for doing this Patrick!

  • My friend just ask me this question a while ago and then suddenly your video came into my notification…Hahaha Cheers Pat!!!,.Thanks Man!!.On point as always.

  • Thanks for all your hard work ❤️@Valuetainment team and Patrick. It would be great if you make a video about How to create a ✅System in our business. Love all your videos. God bless You. Peace from Tajikistan 🇹🇯 😊👍🏽

  • I really like Patrick how you are very Straight up and not afraid to put people on blast! Keep doing it🥊🥊🥊

  • thank you very much Patrick… I am lookig for office space to set up my first physical location. You've just informed me how the broker has been exploiting my naivety!! God bless you 100 times more!!

  • Mister Pat You're My Mentor I'm from Sudan and I've just Started to Developing Software
    that's fix problems that we've in my Country You're My Mentor and I learn a lot from your
    Channel , So please Upload a video about the uncertainty of startup and problems the each startup face .

  • Damn this was good.
    There's no other entrepreneur on YouTube who provides the amount of value in their content as you do Pat. Thank you!

  • PAT..You should probably sue Youtube for showing Tai lopez ads on your videos… Its like watching a honda ad on a BMW i8 video

  • @Patrick – You mentioned CBRE in this video for a location in Dallas and I am needing to know if you have a contact number to a CBRE rep? There is a location I am interested in near the Dallas area, however the contacts for that space have not returned the calls to me or my Real Estate Agent. The shopping center is less than 70% occupied so I know they could use reputable tenants, however they have been unresponsive for over 2 weeks now. Please help.

    Thank you.

  • Omgosh Mr Bet-David – THANK YOU so much for this. Still following you – still sharing your vids. Incredible info!

  • Never let down a deal. Get as creative as possible and offer as many solutions as possible, as no two leases will be the same.

  • I'm about to redo a lease but the property management company doesn't want to fix anything and my business is being brought down because of the solicitors. We pay for parking lot fees, security, cleaners to clean the parking lot and rent but there is no one pushing out the solicitors and the parking lot is full of trash. How can we improve my business and how can I renegotiate my lease that is coming up soon. Really don't have the funds to relocate at the time

  • I just found your channel. Here’s my scenario, I have been in my commercial location for 2 years now, I had a 1 year lease and I got a good price on it. I’m currently not in a lease or a month to month anyway. The owner just informed me she’s selling. This has me concerned obviously. I don’t know what the new owners plans are. They could be to raise the rent or who knows, maybe they’d want to use the building themselves.
    Is there any good way of protecting myself as much as possible? If they decide to give me 30 days notice and that’s it I’ll be quite screwed.
    I really do not want to move, it’s a huge hassle between moving equipment and advertising enough to let customers know I didn’t just go out of business.

  • I like this knowledgeable information. I'm assuming it's the same for retail space. Here in St. Louis, MO…everything is NNN…there are loads of vacant space here and folks owners are so greedy that most are not willing to work with startups. Examples: worn down retail fronts sitting for years and they want top market rent/lease and not willing to make repairs, etc.

    Sad. Oh and popup stores has yet to catch on here in St. Louis.

  • Great Advice there Pat, I am also looking out to lease a space for my new business. I will certainly use some of this advice. point taken – No two leases are the same so be creative in your negotiation

  • Your's video is always impressive. I love to know your thoughts regarding commercial official space. I also want to take office space on lease. This video properly guides me in taking the decision. Click here for more update: https://youtu.be/MKAz665A19k

  • Unless you get a tenant representative who is paid by you and incentivised by the savings he/she can generate for you, ie: the tenant representative gets a percentage of the difference between the value of the landlord's initial offer and the value of the final offer.

  • Got an estimate of how much it will cost to design/build my Shave Ice business for a retail space i want to lease in a town center. It will cost about $70,000. Since I am only trying to negotiate a 5 year lease term with the Property Management company, how likely is it that they will provide a TI in this amount? I know I cannot pay for this build. In your experience and from your clients, do the LL or Property management usually provide TI funds to build a space or would that be my responsibility? I just cant understand the idea that I would have to pay this much for the design/build when the store is not even mine. How is it usually negotiated between the tenant and LL?

  • We specialize in commercial retail and office space leasing in Manhattan, New York City. https://www.retail-officespace.com/

  • I can read all books of real estate but only can learn through other people's experiences. Thank you for sharing Patrick!! Lorena.

  • Thank you very fucking much
    I was about to sign a lease this asshole has a lease geared to making himself very happy but fucking my wife and i in the process 22 pages and not one page is there to protect the leasor is all about protecting the leaseee…i read it went to bed and woke up with a nightmare feeling i love the place very much and my wife cried when we didnt take it but we couldnt sign that i wish i could send you a this lease

  • -How can I negotiate a building that is a 5 year lease minimum I only want 1 year or 2 , it is also triple net service

  • Did he really say ''there isn't a book you can read on leasing''?
    Only hundreds of books have been written on leasing in the past 50 years. Entire college courses on leasing. Duh.

  • Bro, this is toooo much. I simply want to go to Bob who owns a building, negotiate with Bob. Then sign with Bob and pay him directly. Who needs a real estate agent and broker? This is why its ridiculously hard to become a successful entrepreneur. Too many hands in the pie.

  • There are many Profession Independent Brokers like myself that are highly ethical yet you’re endorsing CBRE in a big way, but your YouTube audience is likely not the type of tenant that they would even represent. Putting fear of independent brokers may not be in the best interest of your audience. Most of your video talks about how sleazy Brokers could be and very little to do with the office leasing process, and then you jump into self endorsement. You sound like that sleazy realtor you describe about at the beginning of the video. Your tactics of instilling “fear” are designed to get people to think that they should only trust you, and that’s pretty sleazy.

Leave a Reply

Your email address will not be published. Required fields are marked *