SITE SELECTION PLAYBOOK

A step-by-step guide for how a tenant rep broker will help you find and secure the right office space for your business.
Overview

All tenant representation brokers will follow a similar process for site selection. This guide
outlines the steps they will take to help understand your needs, formulate a plan, and,
ultimately, assist you in finding a space to meet your business, brand and financial goals.

w
l es vie
t os
a
is at e
me
n
ro
p ys tim n tR
ss vey P al Es n t e
se ur Fo
r An on nte um
s
t S est l cti I
Do
c
d sA ke nc
ia
str
u
ro
f
ee ar qu a n tte ase
N M Re Fin Co Le Le
Page: 4 6 7 9 10 9 10

DISCOVERY SEARCH ANALYSIS NEGOTIATIONS

DISCOVERY
First, your broker will get to know your company and
what you’re looking for up front. This will help the broker
understand location preferences, growth plans and budget
so that they can help you make informed real estate
decisions that fit with your company’s long term strategy.
Needs Assessment

The site selection process begins with a

conversation to find out what matters to
you and to understand your company’s
long term needs and goals.

Is your company growing quickly?

Where is your client base? What are
your parking needs? Do your employees
need to have easy access to amenities
within the property or nearby?

Through dialogue with you, your broker

will flesh out what is most important in
your company’s search for the best real
estate alternative.

DISCOVERY | 4
 SEARCH
Once a strategy has been set, your tenant rep broker will
facilitate a search based on your requirements to identify
the best options for your needs. They will do the heavy
lifting, prepare surveys, schedule tours and present you with
options.
Market Survey

Your broker will perform thorough

market research to identify the best
available options in the market and
present them to you.

Your broker should:

• Identify suitable space

• Tabulate key data for easy

comparison

• Compile property flyers and

floorplans for each option

• Facilitate short-listing of
alternatives

SEARCH | 6
Request for Proposal

Once you have selected a short

list of properties, your tenant rep
will request proposals from each
landlord.

Your broker should:

• Outline a comprehensive list

relevant terms for each landlord
to address

• Uncover hidden costs and risks

associated with each property

SEARCH | 7
 ANALYSIS
Finding options that may work for you is the easy part.
Where a good tenant representative differentiates itself
from the competition is in analysis and negotiations.
The analysis helps you make a fully-informed decision for
your company.
Financial Analysis

A broker may run a financial analysis

to identify the hidden costs within each
proposal and summarize this information in
a format that allows you to compare options
accurately and quickly.

Other Scenarios:

• Landlord Analysis - a broker may

analyze the transaction from a landlord’s
perspective to see if you can negotiate
further concessions.

• Lease vs. Own Analysis - a broker

may provide analysis to help you
determine whether it is best to lease or
own real estate, based on your strategic
business goals and objectives.

• Lease Restructure Analysis - a

broker may analyze the economics of a
transaction from the landlord’s perspective
to estimate their reservation price and
provide framework for lease restructure
negotiations

ANALYSIS | 9
Construction Estimates

Your tenant rep should help you

engage an architect to create EXAMPLE
Wed 3/16/16
Aquila Commercial
Project Management Services

Preliminary Project Schedule

a conceptual space plan in
order to evaluate the efficiency
ID Task Name Start Duration Finish March April May June
3/2 3/9 3/16 3/23 3/30 4/6 4/13 4/20 4/27 5/4 5/11 5/18 5/25 6/1 6/8 6/15 6/22
1
PROJECT DURATION Aquila Commercial Mon 3/10/14 76 days Mon 6/23/14 0%

PRELIMINARY CONCEPTUAL BUDGET Project Management Services

2
DESIGN PROCESS Mon 3/10/14 37 days Tue 4/29/14 0%

Alliance Abroad
of each space. They will also Useable SF:
3

4
Schematic Design

Design Development 15-Mar-16

Mon 3/10/14

Wed 3/12/14
2 days

5 days
Tue 3/11/14

Tue 3/18/14
0%

0%

help engage a contractor to Rentable SF: 19,770

$40.00 Landlord Allowance

5

6
Construction Documents

Landlord Review of CD's

Wed 3/19/14

Wed 4/2/14
10 days

2 wks
Tue 4/1/14

Tue 4/15/14
0%

0%

perform preliminary construction P R OJ ECT COSTS R ECAP

$790,800.00 Total available TI allowance 7

8
City of Austin QT Permit Review Wed 4/2/14 4 wks Tue 4/29/14 0%

budgeting.
Budget Numbers:
9 BIDDING & NEGOTIATIONS Wed 4/2/14 15 days Tue 4/22/14 0%

Total Projected Construction Costs 43.00 10 /RSF $850,110

Solicit & Receive Bids Wed 4/2/14 10 days Tue 4/15/14 0%

Total Projected Design/Engineering & Consultation Fees 3.90 /RSF $77,113

11
Bid Evaluation Wed 4/16/14 2 days Thu 4/17/14 0%

Total Projected Project Management and Legal Fees 2.34 /RSF $46,350
EXITING / FIRE RATINGS / EGRESS INFORMATION 12
GC Contract Review & Execution Fri 4/18/14 3 days Tue 4/22/14 EXTIT TYPE: DOOR 0%
Total Technology-Related Costs 4.25 /RSF $84,023

This process will enable your

EXIT WIDTH: 36"
EXIT CAP: 240 OCC
OCCUPANCY B, FULL NFPA 13 SPRINKLER SYSTEM ACTUAL USE: 220 OCC
13
Total Projected Furniture, Fixtures, & Equipment 6.56 /RSF $129,633
MEANS OF EGRESS: 2 EXITS REQUIRED PER STORY MIN.
SPACES WITH ONE MEANS OF EGRESS: A,B,M= 49 OCC. MAX.

MAX. TRAVEL DISTANCE: 250 FEET

14 CONSTRUCTION PROCESS Wed 4/23/14 43 days Fri 6/20/14 0%

Total Projected Relocation COMMON

Expenses 1.10 /RSF $21,747

broker to provide accurate

PATH OF TRAVEL: 125'

EGRESS WIDTH: OCCUPANCY X 0.3" (STAIRWAYS)

15
Mobilization
TRAINING CONFERENCE Wed 4/23/14 2 days VICTORIAThu 4/24/14 0%

0.00 /RSF
122 CAUTION: DO NOT SCALE DRAWINGS

Total Projected Add Alternate Expneses (if approved) $0

121
OCCUPANCY X 0.2" (DOORS, OTHER) 3 A: 273 sq ft 1 2 sq ft
A: 367
THESE DRAWINGS ARE THE PROPERTY OF THE

Fri 4/25/14 Thu 5/1/14

ARCHITECT AND MAY ONLY BE USED IN
16 0%
Demo 5 days
HORIZONTAL AND VERTICAL SEPARATIONS BETWEEN DWELLING UNITS CONJUNCTION WITH THIS PROJECT
AND OTHER FUNCTIONS TO BE 1 HOUR
SUB-TOTAL PROJECTED PROJECT COST 61.15 /RSF D
$1,208,976

comparison of space efficiency

SEAL
CORRIDORS TO BE 1/2-HOUR RATED
17 Fri 5/2/14 Wed 5/14/14 0%
25 22 14 2
Framing & Drywall WORK ROOM/COPY 9 days
Total All Contingencies $109,781
VERTICAL SHAFTS TO BE 2-HOUR RATED OCC. TYPE B 21
A: 260 sq ft OFFICE OPEN OFFICE SPACE
OCC. TYPE B
Thu 5/15/14 Fri 5/30/14
118
OCCUPANCY SEPARATIONS:
18 2,056 SF 0%
MEP's 12 days
C
OPEN OFFICE SPACE A: 119 sq ft
M TO S-2 1 HOUR
TOTAL PROJECTED PROJECT COST 66.70 /RSF $1,318,757
1:100
845 SF
B TO S-2 1 HOUR EA
1:100

among options.
B TO R-2 1 HOUR 116
FINANCE

Mon 6/2/14 Wed 6/18/14

119
R-2 TO R2 SEE ABOVE 19 Finishes
1 8
13 days 1 A: 121 sq ft A: 224 sq ft 57 23 0%
Construction Costs
A-3 TO R-2 1 HOUR*
8 OFFICE 1 1 02/23/2016
117 OFFICE
ELEVATOR LOBBIES NOT REQUIRED FINANCE
Total Projected Construction Costs 43.00 20
/RSF Punchlist $850,110 Thu 6/19/14 2 days Fri1 6/20/14 0%
A: 119 sq ft 115
AREA OF REFUGE NOT REQUIRED TRAINING/FLEX SPACE IT SERVER A: 121 sq ft 120 PROJECT
123 124 A: 145 sq ft
125
A: 628 sq ft A: 122 sq ft A: 113 sq ft

Owner Construction Contingency [10%] 4.30 21 /RSF $85,011

1
STOR

/RSFMove in Thu 6/19/14 Mon 6/23/14

12'-87/8" 5'-07/8"
22 0%
7'-3"

3 days
EXIT ROUTE, DIRECTION OF C B

Total Projected Construction Cost [W/Contingency] 47.30 $935,121

1014.2 EGRESS THROUGH
MAX 114
INTERVENING SPACES 50'-0"

1'-11/4"
TRAVEL A: 100 sq ft

1. EGRESS FROM A ROOM OR A SPACE

SHALL NOT PASS THROUGH
ROOM OCCUPANT LOAD

Additionally, you will have the

29 ADJOINING OR INTERVENING ROOMS
23
Install Furniture, Fixtures and Equipment Thu 6/19/14 2 days Fri 6/20/14 0%
Architectural and Interior Design/Engineering & Consultation
D
OR AREAS, EXCEPT WHERE SUCH
ADJOINING ROOMS OR AREAS AND
29 CUMULATIVE OCCUPANT LOAD THE AREA SERVED ARE ACCESSORY
TO ONE OR THE OTHER, ARE NOT
D
24 Open for Business Mon 6/23/14 1 day Mon 6/23/14 0%
GROUP H OCCUPANCY AND PROVIDE

T
EN
Basic Services (Interiors)
A DISCERNIBLE PATH OF EGRESS JAMES

EM
TRAVEL TO AN EXIT. 108 2

UR
A: 242 sq ft

AS
STAIR #1 OBJECT

D ME
concrete data to assess the
Programming 36" DOOR WIDTH (INCHES)
0.10 /RSF $1,977 D D

EN
160 DOOR CAPACITY SM CONF. SM CONF.

AD
113 112

DE
44" STAIR WIDTH (INCHES)
Evaluate Building 0.05 /RSF $989
A: 126 sq ft A: 160 sq ft
146 STAIR CAPACITY 1 2 1
146 ACTUAL USE
1 1

Remainder of Interior Design Services

DOOR 2.58 /RSF $51,007
Critical
PANTRY
Task Progress Summary Progress
D
Rolled Up Task Rolled Up Milestone

true value of each landlord’s

OBJECT A: 9 sq ft OCC. TYPE B OFFICE OFFICE
72" DOOR WIDTH (INCHES)
Approved Additional Interiors Services 0.00 /RSF $0
OPEN OFFICE SPACE 106 107
330 DOOR CAPACITY Critical Split 810 SF Baseline Summary A: 120 sq ft A: 120 sq ft
Rolled Up Split External Tasks
255 ACTUAL USE 1:100
Critical Progress Baseline Split Rolled Up Critical Rolled Up Task Progress Project Summary
Optional Additional Services Estimates OFFICE
Task E Baseline
KITCHEN AND LOUNGE Milestone 105 Rolled Up Critical Split Rolled Up Baseline External Milestone
111 LAB E A: 115 sq ft

Furniture Inventory 0.00 /RSF $0

proposed tenant improvement

Split Milestone Rolled Up Critical Progress Rolled Up Baseline Milestone Deadline
A: 905 sq ft
109
A: 209 sq ft 1 34

Furniture Specification 0.00 /RSF $0 Page 1

8 10 2

Graphics Consultation 0.00 /RSF $0

allowance
Artwork Consultation 0.00 /RSF $0
OFFICE DRAWN BY
STOR 104
110 A: 115 sq ft
A: 82 sq ft SV, MG
Consultants
1 31 30
STOR
A: 14 sq ft
OCC. TYPE B SET ISSUE

MEP Engineering (Interior) x 1.0 0.70 /RSF42 $13,849 OPEN OFFICE SPACE
3,124 SF
PERMIT SET
Structural Engineering x 1.1 0.00 /RSF $0
1:100

Permit Expeditor x 1.0 0.06 /RSF 1 17 $1,186

3
LG CONF
102
A: 338 sq ft 3 13
REVISIONS
REV ID CHANGE NAME DATE
BREAK RECEPTION
ADA/TAS Inspection x 1.0 0.06 /RSF $1,186
101 D
100
A: 94 sq ft A: 261 sq ft

Security Consultation x 1.0 0.00 /RSF $0

Technology Consultant x 1.0 0.00 /RSF $0
Estimated Reimbursables 0.35 /RSF EXTIT TYPE: DOOR
EXIT WIDTH: 36" $6,920
EXIT CAP: 240 OCC
ACTUAL USE: 220 OCC

SHEET TITLE

Other $0
EGRESS PLAN
EGRESS PLAN - LEVEL 1
Total Projected Design/Engineering & Consultation Fees 1 SCALE: 1/8" = 1'-0" 3.90 /RSF $77,113 SHEET : 5 of 62

Contingency on Design Services [10%] 0.39 /RSF $7,711

Total Projected Design/Eng. & Consult. Fees [W/Cont.] 4.29 /RSF $84,824 A0.4
Thursday, February 25, 2016 | 3:04 PM

Project Management, Brokerage, and Legal Fees

© 2015 DICK CLARK + ASSOCIATES

Aquila Project Management 2.34 /RSF $46,350

Estimated Reimbursables 0.00 /RSF $0
Total Projected Project Management and Legal Fees 2.34 /RSF $46,350

Technology-Related Costs

Telephone System - PBX and Devices 0.00 /RSF $0

Voice-Data Cabling 3.00 /RSF $59,310
Security Systems 0.75 /RSF $14,828
Audio/Visual Equipment 0.50 /RSF $9,885
Total Technology-Related Costs 4.25 /RSF $84,023

Contingency [10%] $8,402

Total Technology-Related Costs [W/Contingency] 4.68 /RSF $92,425

Furniture, Fixtures, & Equipment

New Furniture - Workstations, Desks, etc. 5.56 /RSF $109,863

New Furniture - Seating, Files, Tables, Reception, Keybd. Trays, Paper Mgmt. 0.00 /RSF $0
Ancillary furniture (break room, Reception desk, etc.) 0.00 /RSF $0
Signage 1.00 /RSF $19,770
Total Projected Furniture, Fixtures, & Equipment 6.56 /RSF $129,633

Contingency [5%] $6,482

Total Projected FF&E [W/Contingency] 6.88 /RSF $136,115

Relocation Expenses

Move Expenses 1.10 /USF $21,747

Technology Relocation 0.00 /RSF $0
Total Projected Relocation Expenses 1.10 /RSF $21,747 ANALYSIS | 10
Contingency [10%] $2,175
Total Projected Relocation Expenses [W/Contingency] 1.21 /RSF $23,922

Add Alterantes

0.00 /RSF $0
0.00 /RSF $0
0.00 /RSF $0
Total Projected Add Alternate Expneses (if approved) 0.00 /RSF $0
NEGOTIATION
Armed with market knowledge and the in-depth analysis
performed in the previous step, your tenant rep will lead the
negotiation of your lease deal from letter of intent to executed
lease. The broker will facilitate communication between your
company, lawyers and the landlord throughout the process,
working to keep you involved in the process and make sure you
end up with a space and a deal that best meets your needs.
Letter of Intent

After extensive negotiations with

landlords, your broker will prepare a
comprehensive letter of intent which
outlines the commercial terms under
which you are willing to enter into
lease negotiations.

Your broker should:

• Outline the key terms and

conditions of the lease to be drafted

• Provide accurate documentation

of the good faith agreement
between the parties

• Typically push to improve the deal

one final time

NEGOTIATION | 12
Finalize Lease Document

Once the landlord drafts a

lease, a tenant rep will perform
a comprehensive review of the
commercial terms to verify their
accurate compliance with the letter of
intent and reduce legal review time.

Your broker should:

• Perform comprehensive review

of lease to verify accuracy of
commercial terms

• Work with your legal counsel to

negotiate legal terms and offer
advice to make the lease language
as favorable to you as possible

• Provide you with an executed copy

of your lease

NEGOTIATION | 13
Learn more about finding and leasing office space, negotiating your lease and hiring a
tenant representation broker, visit:

aquilacommercial.com/learning-center