Leasing, Marketing and Negotiation (Mktg1)

Leasing, Marketing, and Negotiation

Leasing, Marketing and Negotiation

The Leasing, Marketing and Negotiation course is designed for entry to intermediate-level commercial real estate development professionals. It is ideal for leasing agents, developers, asset managers and owners. The course provides learners with an overview of the commercial leasing process and marketing strategy, and explores a range of applied negotiation strategies intended to immediately maximize the value of every commercial lease. This course will expose learners to leasing issues surrounding office space, flex space, retail buildings and pad sites. Industrial property leasing, build to suits, commercial condos and sale/leasebacks are also addressed. Workgroup exercises are used to develop applied negotiation skills.

Lesson Plans

Week 1

Leasing's Role in the Development Process

This session will discuss when the leasing department should be brought in and identify the leasing agent's role in the development process. We'll also determine a projected timeline for a project lease-up and explore the involvement of leasing in the design and layout of a project. Lastly, we'll examine leasing's role in developing a project's proforma along with the leasing department's contribution when preparing a development project cost budget.

Week 2

Lease Types and Structures

In this session, we'll identify the various types of leases along with the different types of lease structures. Students will also gain an understanding of what is included in Common Area Maintenance (CAM) and learn the key provisions in CAM clause negotiations. In addition, we will discuss how project expenses and real estate taxes should be handled, identify the types of insurance that may be passed thru in a lease and define methods of measuring space for lease.

Week 3

Lease Economics and Valuations

The Lease Economics and Valuation session will illustrate how project rents are determined as well as how net effective rents are computed. We'll explain the key components of a percentage rent clause and define methods of determining the cost of landlord work. This session will also address the following: how to negotiate tenant improvement allowances; how to structure renewal options to maximize project value; identifying methods for new tenant qualifying and underwriting; how landlord delivery and tenant acceptance clauses should be written; and how early termination provisions affect lease value.

Week 4

Tenant Evaluation and Underwriting

This session will provide students with the necessary skills to successfully evaluate potential tenants and discuss the important process of underwriting. Among the topics that will be addressed are identifying key components of a tenant's business plan, determining whether or not a tenant has enough business experience and identifying key measures of a tenant's liquidity and net worth. Students will also identify ways in which the landlord can mitigate a lease's financial risk, gain an understanding of how various types of tenant uses impact a development project, and learn to define key provisions of a lease guaranty agreement as well as the various types of legal entities tenants may use. In addition, we'll discuss how to verify entity existence and good standing.

Week 6

Property Control Issues in Leasing

The Property Control Issues in Leasing session will examine the importance of use clauses and their key components as well as the assignment clause and its key components and issues. Students will learn the difference between assignment and subleasing and gain familiarity with anchor and co-tenancy clauses in retail leasing. We'll also discuss the importance of a tenant opening requirement, tenant go-dark provisions and recapture rights and define the key elements of a tenant relocation provision. Other topics that will be addressed include how to handle no build and tenant control area requests and understanding the importance of defining trade names within a lease.

Week 6

Legal Issues in Leasing for Non-Lawyers

The leasing process presents many legal issues for those involved in leasing a property. In this session, we'll define subordination and non-disturbance agreements, discuss the various types of tenant and landlord insurance requirements, identify the key elements of a casualty provision and explore the lease issues that arise from condemnation. Students will also learn the key language that is required in letters of intent, how to control the lease negotiation process with legal counsel and gain an understanding of lien waivers and tenant estoppel certificates and their significance.

Week 7

Real Estate Project Marketing

This session will explore various strategies to help you successfully market an available project. We'll help you create a marketing plan by answering these questions: What marketing materials are required before you can begin project leasing? What information do you need to gather for your marketing materials? What legal issues do you need to be aware of when preparing marketing materials? What are the methods available for reaching your target audience and are there online sources available for project marketing? We'll also discuss how marketing materials should be targeted to different types of tenants and their use of the project.

Week 8

Managing Real Estate Brokers and Leasing Agents

This informative session will explore the important topic of successfully managing brokers and leasing agents. We'll examine the role of role of a project's listing broker as well as that of in-house leasing when using a listing broker. Students will also gain a better understanding of the importance and key provisions of commission agreements, real estate broker licensing requirements and commission payments. We will outline the types of project feedback you should expect from brokers and discuss broker and agent interaction with the development team, in addition to identifying the written information you'll require brokers and agents to provide throughout the development process.

Week 9

Negotiations

The final session revolves around the all-important topic of negotiation. We'll start by identifying the various styles of negotiations and traits of successful negotiators and discuss the importance of determining desired outcomes before negotiations begin. The differences between face-to-face and telephone negotiations will also be addressed. In addition, we'll discuss who should negotiate on behalf of a landlord, how negotiations are impacted by the size of the group at the negotiating table, who should throw out the first number to establish a position and the importance of thorough preparation prior to taking a seat at the negotiation table.

Education Credits

Education Credits

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Leasing, Marketing and Negotiation is approved for the following Education Credit:
16 hours credit toward the Certificate of Advanced Study in Commercial Real Estate Development.

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15 AIA/CES Learning Units
16 Professional Development Hours (PDH)
1.6 Continuing Education Units (CEUs)

Learning Objectives

Learning Objectives

  • Identify the comprehensive role of the leasing professional in a development project
  • Identify the economic issues surrounding commercial leases
  • Recognize LOI and lease clauses that cause a developer to lose control of its real estate
  • Apply new strategies for successfully negotiating LOI and non-legal lease clauses
  • Identify key aspects of marketing commercial space for lease
  • Develop and apply strategies for successful outcomes in LOI and lease negotiations

Tuition & Register

Tuition & Register

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Course Tuition

This course is not currently being offered

How to Register

This course is not currently being offered

Confirmation

This course is not currently being offered.

Cancellation Policy

This course is not currently being offered

FAQs

FAQs

What does tuition cover?

Payment for a NAIOP online course entitles access for one person only to the course and all materials.

Is there an online instructor?

Yes, there is a live instructor presenting each class. Students are able and encouraged to engage and interact with the instructor and each other.

How much out-of-class work is required for each course?

Courses offered online require no more than one hour per week of additional work outside of the scheduled class times.

What if I miss a scheduled class?

If a student misses a class, all materials and a recording of each class is posted in the material library for the student to review before the next class. A student must attend a minimum of 75 percent of the classes to receive credit.

Do I have to take an exam?

Course exams are not required unless you are enrolled as a candidate for the Certificate of Advanced Study in Commercial Real Estate or the Certificate of Advanced Study in Real Estate Finance.

What records are kept of my coursework?

The Center maintains records of all the coursework you complete, as well as optional exam scores, in a confidential transcript. Transcripts are available to candidates upon request. Please contact education@naiop.org.

What are the computer requirements?

The interactive sessions will be accessed via GoToWebinar.com.

Please use the list below to determine if your computer meets the minimum requirements recommended to participate in the online courses:

To attend on a PC, the following is required:

  • Internet Explorer® 6.0 or newer, Mozilla® Firefox® 2.0 or newer (JavaScript™ and Java™ enabled)
  • Windows® 2000, XP, 2003 Server or Vista
  • Cable modem, DSL or better Internet connection
  • Minimum of Pentium® class 1GHz CPU with 512 MB of RAM (Recommended) (2 GB of RAM for Windows® Vista)

To attend on a Mac®, the following is required:

  • Mac OS X 10.4 (Tiger®) or newer
  • Safari 3.0 or newer, Firefox 2.0 or newer (JavaScript™ and Java™ enabled)
  • Cable modem, DSL or better Internet connection
  • Power PC G4/G5 or Intel processor (521 MB of RAM or better recommended)

Participants wishing to connect to audio using VoIP will need a fast Internet connection, a microphone and speakers (a USB headset is recommended).

Contact Barb David at barbd@naiop.org for more information.