Blog Post 5/2022
Represented Power Service on Office Relocation in Salt Lake City
David Sorenson is pleased to announce the completion of the lease transaction for Power Service. David represented Power Service in the transaction, finding and securing the location, and lease negotiation.
Power Service is part of the Distribution Now Company, a billion dollar company with multiple subsidiaries in the industrial service related industry.
David Sorenson specializes in tenant representation Utah and commercial real estate services.
Blog Post 3/2022
Represented Mindful Counseling, Opening New Office in Salt Lake City
David Sorenson is pleased to announce the completion of the lease for Tiffany Roe and the Mindful Counseling team. David represented Mindful Counseling in the transaction, finding and securing the location, and lease negotiation.
Mindful Counseling is a a leader and innovator in modern mental health. David represented them in 2021 in relocating and expanding their office in Provo. The Salt Lake City office fills a growing need for the companies rapid growth and expansion.
As part of David Sorenson's commercial brokerage services we represented them as part of our commercial real estate services, as well as lease negotiations.
David Sorenson specializes in tenant representation Utah and commercial real estate services.
Blog Post 1/2022
Pleased to Represent Structura Body Therapies
David Sorenson is pleased to announce the completion of the lease for Structura Body Therapies. As part of our commercial brokerage services we represented them on finding their new location and negotiating the lease for their new location in Farmington Utah.
David Sorenson specializes in tenant representation Utah and commercial real estate services.
Blog Post 10/2021
Pleased to Represent Traeger
David Sorenson is pleased to announce the representation of Traeger in finding a location for their R&D Division in Salt Lake City.
David Sorenson specializes in tenant representation Utah and commercial real estate services.
Blog Post 10/2021
The Best Deal in Commercial Real Estate? Tenant Representation!
As a tenant representative, my job is to help my clients to find the best deal on the ideal location for their business. One of my key points in selling tenant representation is that it costs the tenant absolutely nothing. Not bad when you compare your tenant rep broker with your attorney, your accountant, your financial advisor and your doctor. But is tenant representation really free? The short answer is yes. If you are comfortable with that answer you can stop here, but if you’d like an explanation, let’s continue.
Tenant representation involves gaining a thorough knowledge of the tenant needs including budget, layout and image in addition to location, location and location. Your tenant rep has an intimate knowledge of the market, the properties and the players. Your tenant rep will create competition between landlords and skillfully negotiate the best possible deal on your behalf. I provide a professional service that saves my clients time, money and aggravation. Tenant reps are highly paid for providing a valuable service.
- So what is the true cost of my services? The market fee right now for a tenant rep is 3 to 4 percent of the lease value. Most of the major landlords in the market are paying 4 percent. But that fee is paid by the landlord not by the tenant. So there is no direct out of pocket cost for the tenant.
- But my fee has to be added indirectly into your lease payment, right? Not really. The market fee for a landlord broker is 6 percent. If the tenant is represented, that 6 percent is split between the landlord’s broker and the tenant’s broker. So the landlord pays the same 6 percent whether the tenant is represented or not. So if you don’t have representation, you are essentially cheating yourself and paying the entire fee to the landlord’s rep. By not hiring a tenant rep, you are basically throwing 3 percent of your rent out the window.
- Landlords have already budgeted for commissions for tenant brokers and it generally does not have effect on your lease/rental rate. Yes, the landlord will often add one more point for the tenant rep broker so they will pay 7 rather than 6 percent. You may also see a landlord rep taking a little less on a direct deal without a tenant rep. So in some cases, my services may cost the landlord one extra point.
Sure you can find space on your own. Thanks to services like LoopNet and more recently CREXI and their residential counterparts Zillow and Trulia, there is more real estate information online than ever before. But in a recent search for a tenant requirement, I came up with over 100 possibilities. Do you have the time, the patience and the expertise to reduce this to a manageable number, to be sure you haven’t missed something, to understand the differences in pricing structure, and to make the calls to verify availability? And is the agent even going to return your calls or emails? Then, do you fully understand the intricacies and potential hidden costs in leases than go on for over 30 pages and seem to be getting longer every year?
Landlords often tell me they love paying commissions because it means they are getting good tenants who will provide steady income over the long term. And most prefer negotiating with brokers who understand the process rather than tenants who may not.
I can help you negotiate a deal that is better than you can do yourself. And I can protect you from mistakes that can cost time and money. The short answer, it absolutely saves you time and money to use me as your representative.
Blog Post 10/2021
Provo Utah one of the Top 10 Office Markets for Q3 2021
The National Association of Realtors identified ten markets with the strongest office market conditions as of 2021 Q3. In alphabetical order, the markets are: Austin, Texas; Boise, Idaho; Chattanooga, Tennessee; Daytona Beach, Florida; Miami, Florida; Myrtle Beach, South Carolina; Omaha, Nebraska; Palm Beach, Florida; Provo, Utah; and San Antonio, Texas.
NAR identified these markets by comparing 10 commercial and economic indicators in these markets to the national level figures: vacancy rate, 12-month net absorption, year-over-year change in asking rent growth, leasing volume in square feet, year-over-year percent change in business/professional jobs of the metro area, net delivered units over 12-month period, sales transactions in dollars, transaction sales price per square feet, and cap rate.1 A point was given for every metric where the market had stronger market conditions (e.g., vacancy rate is lower than nationally). These markets had an aggregate score of at least 50 (same or outperformed US market). In addition, only markets that had positive net absorption over a 12-month period as of September and with a population of at least 500,000 in 2020 were included.
Provo absorbed 793,154 sq. ft. of office space in the past 12 months with 852,792 of office space leased. Commercial office space is one of the cheapest, at $177/sq. ft. The average cap rate was 6.7% compared to Boise’s 6.3%, The vacancy rate in Provo is also somewhat high compared to Austin, at 9.3%, more than double that of Boise, although its vacancy rate is below the national rate.
Contact me for commercial brokerage services, if you are searching LoopNet, we can provide better information.
Blog Post 7/2021
David L. Sorenson Partners with TenantBase in Utah
David L. Sorenson has Partnered with TenantBase in Utah! Providing tenant representation in the following markets:
- Salt Lake Metro
- Silicon Slopes Area
- Utah County
- Davis County
David has partnered with TenantBase to handle the UT market.
TenantBase is quickly becoming known as a disruptor on how Landlords and Tenants get connected.
After decades of commercial leasing being done in the old same fashion, it is time for something new, something better, and something more efficient – TenantBase has the answer.
TenantBase, using state of the art SEO and search algorithm technology, has created a way to connect with tenants who are actively searching for locations.
Commercial property owners facing challenges of rising vacancy rates need a better way to lease their assets. It can be difficult and employee intensive, to canvass for tenants who are actively searching for space near the location of their properties – Again, TenantBase has the answer.
