Yes, believe it, 30 days or less to complete a tenant rep project from start to lease drafting!
How many times have you heard from clients, “Why does the leasing process take so long?” The truth is that the commercial real estate leasing process is slow and antiquated. We are one of the last industries to truly adopt technology and to divorce ourselves from the “old way” of getting deals done and to embrace the new technologies and tools that have been adopted by most other industries years ago.
If you think about the time and steps involved from starting a tenant rep assignment to drafting a lease and break those steps down, what you will quickly find is that the majority of time is taken up by the “transfer, analysis, and presentation” of information from the tenant to the tenant rep broker, to the landlord agent, to the landlord and back-and-forth many times during the leasing cycle. In addition, the space planning and programming time frame and the construction estimating time frame are all really just transfers, analysis, and presentation of data and information.
Technology – particularly the now ubiquitous internet – have created the ideal platform for data and information transfer and sharing with all parties involved in any transaction process. Think about it: How long does it take to purchase a share of stock? Seconds? Yet the process and the transfer of information is not insignificant. If all parties to a leasing transaction were connected on one or many connected information platforms and these platforms had the software that could perform the analysis and presentation components of a leasing transaction, then the only real “time” needed is for decision making on either end of the transaction.
Well, that is where the commercial real estate leasing business is going, and as a result, my strong belief is that the transaction cycle will be squeezed down to weeks and not months in the coming years.
Of course that is really good news for everyone involved including tenant rep brokers like us and our firms. If we can do the same number of deals, with the same compensation in a much shorter and efficient way, then the earnings per broker and the respective company margins will only increase.