Below please find a chart intended to reveal all potential costs associated with the acquisition of office space.

It includes each step in the process from pre-transaction services to post, a general estimate of cost, who provides the respective service and how the fee is, or potentially can be, paid.

Who pays the broker and for what?

The broker is compensated by the landlord only in the event a lease is fully executed.  Many of the below fees are included in Brokerage Services which are compensated by the landlord.  Some of the costs can be paid for with an allowance provided by landlord which is negotiated by Broker. There are expenses that are paid for directly by the Tenant.  

Who all is involved in the process? (See Provider column below)

What are the steps involved in this process? (See Process column)

What costs can be negotiated?

What are my costs (Tenant Expense)?

 

Process

Project Definition

Cost/Value

3-5 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Programming

Cost/Value

$5K-$10K

Provider

Architect

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Market Survey

Cost/Value

10-40 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Preliminary Budget

Cost/Value

2 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Building Tours

Cost/Value

10-20 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Site Assessments

Cost/Value

2-5 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Solicit Proposals

Cost/Value

5-10 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Financial Analysis

Cost/Value

3-5 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Test-fits

Cost/Value

$0.10-$0.15/SF

Provider

Architect

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Construction Estimates

Cost/Value

3-5 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Negotiations

Cost/Value

5-20 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Approval Process

Cost/Value

2-40 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Lease Review

Cost/Value

5-20 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Legal Review

Cost/Value

5-40 hours @ $200-$500/hr

Provider

Attorney

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Architecture & Engineering

Cost/Value

$4.00-$5.00/SF 

Provider

Architect

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Interior Construction

Cost/Value

$30-$100/SF

Provider

General Contractor

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Project Manager

Cost/Value

$1.50-$2.00/SF 

Provider

Landlord’s or 3rd Party

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Furniture Consultant

Cost/Value

$2.00-$2.50/SF

Provider

Consultant

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Furniture

Cost/Value

$20.00-$35.00/SF 

Provider

Furniture Vendor

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

IT/Audio Visual

Cost/Value

$4-10/SF

Provider

Contractor/Vendor

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Equipment

Cost/Value

$2-10/SF 

Provider

Vendor

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Move Costs

Cost/Value

$1.00-3.00/SF

Provider

Moving Company

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Value Summary Report

Cost/Value

2 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Lease Abstract

Cost/Value

2-3 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Cloud-Based Document Management

Cost/Value

Throughout life of lease

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Automated Critical Date Management & Notifications

Cost/Value

Throughout life of lease

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

Process

Client Spotlight

Cost/Value

2-3 hours

Provider

Broker

Included in Brokerage Fee

Can Be Negotiated In Allowance

Tenant’s Expense

These costs are based on general estimates of current market conditions and are subject to change.