Client’s current lease was to expire in a year and a half. They wanted to renew but they wished to reduce their space and rent. Redac helped the client renew for two additional years on a different floor, in the same building for the new lease term of three and a half years. This helped the client reduce their total space by 25%, and reduce their rent by 60%, all without any lease penalties.
Do these problems sound familiar when dealing with commercial rentals in the U.S.?
- Incomprehensible contracts in English
- The contract, which could be dozens of pages long, is all in English, so just going through all the pages could be a daunting task. Even for fluent English speakers, it takes a lot of time to comprehend the sentences often expressed in technical real estate jargon.
- Unable to determine whether the rent and conditions are appropriate
- In addition to the base rent, there are property management fees, real estate taxes, annual rent increases and rent bumps, which are not concepts that are common in Japan. Without knowing the market, it is hard to judge the appropriate rent amounts and contract conditions.
- Unfamiliarity with U.S. business practices
- It is not unusual for businesses to sign a deal that is more favorable to the owner because they did not understand the key negotiation points. It is difficult to judge if the terms are specific to the office space or if they are general terms. What would the terms have been if leasing at a different building?
- Misunderstandings due to unique requirements of Japanese companies
- Many Japanese companies require the approvals of their Japanese headquarters for the final decision on an office lease. Therefore, decisions take more time compared to a local U.S company, and landlords do not appreciate this cultural difference, which can lead to misunderstandings.
- Lack of clarity on real estate project schedule
- In the U.S., there are more uncertainties around commercial real estate schedules compared to Japan.
- No in-house person responsible for handling commercial real estate
- The average Japanese expat stays for 3-5 years, while commercial real estate contracts last between 5-10 years. It is therefore hard to accumulate knowledge and experience in this field in the company.
Business rentals need to take into account multiple factors,
not just the commercial space, but also other pre-move factors.
However, most Japanese companies do not have expertise in U.S. commercial real estate.
Redac Commercial will provide support as your partner for your U.S. business success
For Japanese companies to be able to build the most suitable business strategies,
Redac will serve as the “Outsourced Real Estate Department” in the U.S.
and propose all solutions related to commercial real estate.
Commercial Real Estate Brokerage Services
Lease Brokerage Services
We provide optimal solutions for your needs
Experts who are knowledgable with the market will give you guidance in accordance with your business strategy to reach the optimal solutions.
New Lease
Lease brokerage for new and relocating offices
We will introduce properties that best match your criterias such as desired area, size and conditions, and will support you from the negotiations with the owner until the closing of the deal.
Lease Renewal
Commercial Lease Renewal Brokerage
Many businesses tend to think they could handle their lease renewal without assistance. The truth is, the owners will have a commercial real estate broker representing them to make negotiations in favor of them, so in order to get the best outcome for your company, it is crucial to have a broker who is experienced in representing tenants.
Early Termination Clause
Negotiation for an Early Termination Clause
In the United States, once contracts are finalized they cannot be renegotiated. Experts who are knowledgable with the market could negotiate advantageous conditions for your lease agreement.
Subleasing
We will find a sub-tenant and negotiate the sublease terms
In addition to looking for a suitable sub-tenant, you must negotiate the sublease terms with the owner. Sublease contracts must be prepared by the original tenants, and working with a trusted broker will be essential.
Sales Brokerage Services
We provide intermediary service for property sales transactions
With our local expertise in the valuation of the commercial properties, we provide services that best meet your needs.
Disposition of Property
Finding potential buyers and handling the sales of your properties
We will provide advice to effectively sell your property, help with listing to get the broadest exposure to potential buyers, and provide expert help as a seller’s representative to close the deal.
Acquisition of Property
Finding properties and handling the acquision process
We will help identify qualified properties that meet your needs and provide expert help as a buyer’s representative to close the deal.
Types of Properties
We introduce properties that best suits your needs
Redac Commercial works not only with office spaces but across various types of properties. We propose the best type of property that meets your needs.
Office Space (Short / Long Term)
Executive office suites available for short term lease as well as conventional office space that needs to be leased for several years.
Office Space/R&D
Office space plus R&D space that has been improved for testing, development and research.
Office Space/Warehouse
Office space with a warehouse or a warehouse with office space
Retail
Showrooms, stores, restaurants and other commercial properties
Case Studies
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Space Reduction and Relocation Within the Same Building
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International Expansion Support to a Remote U.S. City
Supported the establishment of an R&D office from scratch at a remote area in the U.S. with poor local Japanese language support. Redac managed local real estate agents as subcontractors, and remotely ensured consistent services from property selection, negotiation to construction work. In regards to design and construction, Redac cooperated with local Japanese companies to help them manage the project smoothly.
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Real Estate Sales
Client was relocating to another state in a year and wished to sell their warehouse before then. As they didn’t want to make this public until right before the relocation, they needed to do the sale off-market. Redac helped them excecute this off-market sale in five months, right on schedule and at a higher price than expected. Redac also provided post sale relocation and space reduction support.
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Office Consolidation Within the Same Building
Client had scattered offices across multiple floors of a building, a result of the need for more space each time their U.S. business had grown. Redac helped them combine all the lease contracts with different expiry dates under one lease and relocate to a different floor. Redac also provided support to implement the new collaborative workspace trend into their office and consolidate the 2 floors (above and below) into 1.5 floors so that it could flexibly support their future business expansion.
