How can a boutique real estate firm represent many of the largest law firms in the world? Wouldn’t they face major competition from the largest real estate firms? Perhaps. So we choose not to compete.
Instead, we play by different rules.
Avocat Group continues to quietly represent law firms both small and large, including many AmLaw 200 firms.
These firms don’t choose us because we are the biggest or LOUDEST. They hire us because we are small, understated, experts, and unique. Most of all, they hire us because we earn their trust first by solving their problems as they arise…with no concern for fees and with no strings attached. We don’t chase the next “deal”.
We’ve spent over three decades studying hundreds of firms and thousands of transactions to develop a system to fine tune the strategy that gives our clients an advantage over their competitors. We’ve discovered that there are a handful of important and financially significant imperatives that drive profitability, accrue savings directly to the bottom line, reduce risk, and improve productivity:
We’ve developed the Avocat Six Rules of Law Firm Real Estate™ toward the aims of:
Increasing Partner Profits
Maximizing Flexibility and Utilization
The Avocat Group’s end-to-end service strategy creates unprecedented efficiency, accountability, and quality of service for clients by expanding upon the traditional commercial real estate transaction chain.
Is your real estate flexible enough to provide your firm with a strategic advantage over your competitors? It needs to be. Delivering dollars to the bottom line nowadays means vigilance and aggressiveness when it comes to law firm office space:
Positioning Facilities for Lowest Cost/Value to Drive Revenue Growth
Reducing Operating Expenses
Improving Flexibility and Asset Utilization
Maximizing Financial Structuring
Identifying New Opportunities to Increase Profits
Integrating Design, Construction, and Relocation Services
Uncovering Unidentified Savings and Landlord Overcharges
Negotiation of Economic Terms
In today’s business environment, lease agreements and purchase contracts are becoming ever more complex. Skillful negotiation is no longer about chest bumping or simple haggling over price. There are many variable at play.
The best negotiation strategy is always to maintain multiple options. Leverage is lost when the tenant loses the ability to walk away from the table. Timing, research and strategy in this area is critical.
It’s good practice to let the marketplace do the negotiating for you. No landlord can refute the argument that you have a better option down the road, perhaps at a lower rate or offering better tenant improvements, geography, a stronger tenant mix, or more efficient layout.
Getting everything you want in a real estate transaction requires skill and experience.
Financial Comparisons & Cost Containment
Regardless of the business you are in or the options you are considering, financial impact is likely to be an extremely important contributing factor in corporate decision making.
Professional tenant representation means intricate financial analysis from a completely unbiased and objective perspective. You’ll need to consider total occupancy costs, operating expenses, business impact, tax implications, cash flows, commute times, returns on investment, flexibility, and other determining factors.
Tenant Improvement Construction
Tenant improvements are often a very significant component in evaluating various options for lease and establishing rental rates. Whether the landlord is delivering the space on a turn key basis, or you are managing construction yourself, you need an experienced advisor to contain costs.
Beginning with lease language and negotiation of terms, permitting processes in various jurisdictions, building materials and timelines, architectural fees, labor costs, and impacts on construction delays, you need to protect yourself.
Needless to say, trusting a landlord’s general contractor, architect and construction manager may not be an advisable strategy. That said, there are always ways to limit exposure and reduce the tenant’s time investment and/or concerns for cost overruns in tenant improvement buildout.
Options for Ownership
A good reason to stay proactive in the management of your real estate is to open up opportunities in ownership or building to suit. With long permitting processes and various red tape, purchasing or building commercial space and having it prepared for occupancy typically requires at minimum 12 – 18 months.
Market conditions vary, ownership situations fluctuate, and real estate markets are imperfect. It’s always a good idea to keep a light pulse on what’s out there, what’s happening in the market, and how might your business be affected.
Many companies prefer not to own, but a substantial portion of these groups have arrived at this decision without ever looking around. A good tenant representation firm will help you compare costs of ownership or building to suit with lease options…on an apples-to-apples basis without bias. Even if ownership is a longshot, you should sleep at night knowing that you’ve evaluated all available scenarios.