Prime Property Consultants Ltd. | Primeoffice.com.hk - Hong Kong Office, for Rent and for Sale

1. Send a Property Enquiry request form.
Click the Property Enquiry button and send us your basic search requirements so we can get the process started right away. We will typically contact you within the hour during the business day. If you prefer, feel free to give us a call by 2854 2856.

2. Determine Your Ideal Space.
Via the phone we will interview you about what your perfect office would look like. Together we will discuss your ideal size, configuration, location, building quality, parking needs, budget and future growth projections. This will help us conduct a custom search for you.

3. We Locate the Best Options
Your office specialist will use your criteria to identify the best properties. PrimeOffice generates a custom market survey within 24 hours including pictures, addresses, rates and floor plans.

4. Tour Office Spaces
After you receive your market survey, together we will consider the options and choose the most desirable properties—down to a target 5-10. Your agent will do all the legwork and set up an office tour for you to see the spaces in person. We will be your consultant on the tour, asking the questions you need answers to: What is the parking ratio? How much is after hours A/C? What are the building hours of operation?

5 . Request Lease Proposals
After we identify the best 2-3 properties, your agent will submit a request for proposal (RFP) to each of the landlords. This will help the property owners tailor their lease proposal to your size, term, and build-out requirements.

6. Compare Proposals
With lease proposals in hand, your consultant can make an Apples-to-Apples comparison and show you how each office space will affect your bottom line.

7. Negotiate the Business Terms
Your negotitor will submit a Letter of Offer on your behalf with more favorable terms to your top two choices. The landlord will respond with a revised lease proposal. This negotiation exchange may happen several times until an agreement is reached.

8. Finalize the Contract
After you have agreed to and signed the revised lease proposal, the landlord will produce the first draft of the lease for your review. We strongly encourage you to use the council of your attorney and your office broker to sift through the legal terminology. It is important to coach your lawyer to work with the landlord to come to a mutually beneficial agreement, since the lease document will be the basis of your relationship with the landlord for years to come.

9. Prepare to Occupy
With a lease signed and finalized, we will need to approve the final build-out plan for construction, choose paint and carpet, schedule movers, install wiring and purchase furniture. Your agent should be able to save you time by recommending the most professional vendors for your needs. It is a good idea to put these steps into motion while you are finalizing the contract to make sure you can move in on schedule.

Negotiating without professional representation
If you negotiate for yourself, it is very likely that you are leaving money on the table . With PrimeOffice on your side, your agent will know the best deals being made in the market and will negotiate against the owner for every possible concession. The expert knowledge of a third party negotiator gives you powerful leverage to get the best deal. (Use an office leasing specialist, even if it is not us!)

Underestimating the time required to lease space
Every week we receive calls from people who need to move within 30 days. Although possible, it can be difficult and more costly. Relocating a business and signing a lease is most often a very involved, time-consuming process. We encourage our clients to start working with us AT LEAST three to six months in advance .

Working directly with the building agent
Building leasing agents have a legal obligation to represent the owner's interests at all times. They will not volunteer negative information about the property they are representing or tell you that the owner will accept a lower rental rate. The owner has an expert on their side protecting their interests-- who is on your side?

Underestimating the complexity of the leasing process
Although leasing office space may not be brain surgery, it is a detailed, time-consuming process. It can be very stressful to run a business while trying to negotiate a lease and move at the same time. Allow plenty of time for each step of the process and get expert help. Handling all the leasing details is what brokers do best.

Paying the sticker price
All business terms in a lease are negotiable. Most landlords set their initial lease terms in much the same way car dealers set automobile prices - higher than they are willing to accept. After we receive a Lease Proposal from a landlord, we make a counter offer to negotiate for better terms. In your letter of intent we can suggest a lower price, higher Tenant Improvement Allowance and free rent. Our office leasing specialists know exactly what to offer to arrive at the best deal possible.

Pretending to be a lawyer
Reviewing your own lease is like playing a football game without pads or a helmet. Unless you are a lawyer or a commercial real estate agent, you need help sifting through the lease and protecting your interests. The owner's lawyer has drafted 30 legal -sized pages of 8-point type to make sure that the owner is protected at all costs! It is the job of your attorney and broker to point out potentially serious problems with the contract.

Rate
Price is often focused on as the way you determine if you are getting a "good deal" but the overall occupancy cost is the more important. The "effective rental rate" is the number that you should use when comparing lease proposals. Your effective rate is the figure you get after factoring in free rent and other cash concessions. Example: 1 month free and then 23 paid months at $18 per SF = $18 X (23/24) = $17.25 Effective Rate.

Rent Free
Rent Free is a very important part of the occupancy cost that can lower the effective lease rate for the tenant but still leave a "higher" lease rate for the landlord when they go to sell the building. Free rent also allows tenants to use the cash they would normally spend on rent to pay for movers, wiring and furniture. Free rent is typically given on the front end of the lease and is in addition to the agreed lease term. Example: 3 year lease with 2 free months = 38 months of occupancy.

Term
The length of your lease determines how aggressive a deal your broker can negotiate for you. Short term leases of 1-3 years expire so fast that another vacancy and lost income is just around the corner for the owner-- not very attractive. Long term leases of 4-10 years equals low vacancy and high profits for the landlord. The costs incurred by the landlord with each new lease signed (legal fees, tenant finish-out and brokerage fees) must also be amortized over the term of the lease. Landlords are willing to invest more in your tenant improvements if they can justify the up front cost with a long term rental income stream.

Tenant Finish-out
The more money you ask the landlord to spend getting your space ready for your lease, the less flexible they will be on rate. New paint, carpet and walls might seem like a benefit to the landlord too but it is really just seen as an expense. By the time your lease is up the space will need to be updated again from wear and tear and different preferences of the next tenant. You can negotiate better lease rates if you can find a space that substantially meets your needs as-is. The cost savings to the landlord can be realized in a lower negotiated rental rate.

Move-in Date
The sooner you can move in, the better. Vacant space is lost income for the landlord. Everyday a space sits vacant is cash down the drain. If a quick move is possible, it is easier for your broker to negotiate free rent and other concessions for you. If you try to negotiate for an occupancy date too many months in the future you will lose substantial negotiation leverage. A landlord asked to "hold" a space off the market waiting for your occupancy would lose months of rent and much of the desire to bargain with you. Timing of lease negotiations is critical.

Financial Strength
Financial strength or "credit" is VERY important to landlords. Tenants are required to furnish their financials for review (Balance Sheet and Profit & Loss statements). Many businesses are setup as limited liability corporations which can easily run out of money and declare bankruptcy. A personal guarantee from a financially dependable principal or a substantial deposit is often required if the corporate financial strength doesn't satisfy the owner's requirements. Landlord's are looking to lease to profitable companies with a track record of success and stability. The most financially viable companies have the greatest negotiating leverage with landlords.

During Final Contract Negotiations
__ Choose the move day
__ Give current landlord move-out notice (typically 30 days)
__ Bid and schedule movers (mover needs to be bonded and insured)
__ Finalize build-out plan, choose paint & carpet (materials may not be in stock)
__ Order chairs, desks, cubes (new furniture could take 1-2 months to arrive)
__ Evaluate phone system needs, get bids and schedule phone move
__ Order phone lines, forwarding, service move (can take up to 30 days for some services)
__ Order Internet access / move (can take up to 30 days for some services)
__ Evaluate computer networking needs and get wiring bids
__ Get business insurance quote for new space
__ Arrange for copier move

Immediately After Finalizing Contract
__ Order or print change of address labels for notification
__ Print new address labels for existing stationery, marketing materials
__ Order new stationery, business cards, shipping labels and forms
__ Order keys / access cards from management of your new building
__ Ask management of new building to order your suite sign
__ Send address change to customers, subscriptions, government agencies
__ Order checks with new address

Preparing for the Move
__ Install phone lines, phone systems
__ Assign new phone numbers, extensions
__ Inventory existing computers, existing furniture
__ Purge old, obsolete materials
__ Create new office layout map
__ Back up computers
__ Pack up desks, personal spaces, common areas
__ Code furniture and boxes for each office
__ Notify Post Office of Change of Address
__ Update Web site with new information
__ Obtain moving crates/cartons
__ Distribute new keys, cards
__ Collect old keys, cards
__ Reserve access areas parking meters, entrance way, loading areas
__ Coordinate move time with both management companies
__ Finalize business insurance and deliver proof to new landlord

Moving Day
__ Post directions on your old office door to your new location
__ Give new directions and phone numbers to tenants on your floor
__ Take digital pictures of the move-out condition of your old office
__ Move plants
__ Post coded signs in new office for movers

Post-move
__ Return old keys, cards to management company
__ Talk to management about your security deposit refund
__ Periodically visit old office to pick up mail
__ Schedule phone training

Does Prime Property charge a fee?
No. Prime Property offers its services free of charge to tenants looking for office space. The owner pays his broker a commission for each lease signed. If Prime Property represents you, the owner's broker pays us a portion of that commission for helping lease the space. Using a Tenant Representative doesn't raise the rent because the owner often pays the same commission regardless of who helps get the space leased. This means you can have a professional on your side at no cost to you.

When should I start looking for office space?
You should call now and get the process started. From initial search to move-in can take 4-6 months. Small spaces and those leased on an as-is basis can be occupied much faster but you need to give yourself plenty of extra time.

Can you help me create a budget?
Yes, we help clients all the time with their business plans and office budget. Call us to discuss your specific office requirement so we can give you accurate numbers. You shouldn't count on any on-line published rates fitting your individual needs. Lots of things can increase your final occupancy cost so it is smart to get accurate estimates using your specific requirements. We can give you a solid budget range in 5 minutes over the phone.

Do you help negotiate office renewals?
Yes. We provide provide powerful negotiating leverage for tenants who want to renew their current lease. The key to the whole process is to have your landlord know that you are actively searching for alternative spaces with your agent. The chance of loosing you as a tenant is the only real motivation the landlord has to negotiate. Often this is best accomplished by having your agent contact the landlord for a renewal proposal and start the discussion about other properties you are considering. (We recommend you actually go look at new space too.)

Do you help purchase buildings?
Yes. Many clients express interest in purchasing but only a select number of businesses are good candidates for taking on this "project". Buying a building for your business can be a great investment or can financially sink you. The companies who should consider purchasing have 1. Ample cash reserves not needed for business operations or development 2. Stable, positive cash flow for the foreseeable future 3. Predictable growth 4. Six to 18 months lead time before occupancy.

I need more space-what are my options?
1. Look into expansion and relocation opportunities in your building or within the owner's real estate portfolio. 2. Split your operations and get a second office with a lease that expires the same time as your current lease. 3. Start marketing your space for sublease as you start the search for a new location.

I need to get out of my office lease-what are my options?
1. Request a buy-out proposal. This will include a lump sum payment that will terminate your lease -a very costly option. 2. Sublease the unused portion of your space to another company. 3. Sublease your entire space and move to a smaller office.