LeaseAlpha is a technology-based consulting and tenant advocacy platform created to ensure that all tenants have access to the tools and services necessary to negotiate their best possible commercial real estate lease.
How do we do this?
Short answer: Transparency, Integrity, and Math!
We Do The Math
To make an informed decision, a tenant should understand the cost of staying in-place vs. the cost of relocation. To maximize negotiating leverage, the free to use, LeaseAlpha landlord point-of-indifference calculator builds a sophisticated financial model, that solves for the landlord point-of-indifference or “LPI”. The LPI is the early lease restructure terms at which the landlord is projected to receive the same return regardless of whether the tenant stays or leaves. This is the best deal a tenant can receive in their current building, as anything less, and the landlord would rationally prefer to find another tenant in the open market!
We Educate Tenants and Provide Transparency
Commercial real estate leasing industry is not transparent. Information necessary to compare real estate leasing deals is scarce, proprietary to landlords and brokers, and is rarely recorded for public access. As such, there exists a serious informational asymmetry, which makes tenants’ leasing decisions even more challenging. It should also be noted that brokers, representing landlord and tenant, are paid when the deal closes, regardless of how good or bad lease economics are for the tenant. That is why, for a tenant negotiating a lease, it is extremely important to understand the landlord’s “bottom-line” that we call the point-of-indifference, which LeaseAlpha calculator provides.
We Share Brokerage Fees with Tenants Who Engage LeaseAlpha.
Tenants often hear that the cost of tenant representation is paid by the landlord, so the tenant-rep brokerage services are “free” to tenants. We do not believe that to be correct, since leasing commissions are amortized into rent, which the tenant is obligated to pay over their lease term. Since you are paying this cost over time, we believe that payouts of all fees should be fully transparent. LeaseAlpha is dedicated to helping tenants negotiate the best deal and, if LeaseAlpha is engaged, we ensure you see what each entity involved in the transaction receives and a portion of these fees are returned to the tenant.
We Provide Additional Consulting Services
When you engage LeaseAlpha, we utilize our network of local tenant representatives to pair you with the best-in-class representation for your specific needs. We are also available to advise tenants at all stages of the transaction and assist with all necessary quantitative modeling for the deal, including tenant point-of-view models comparing total cost of restructure in-place to that of potential relocation options.
