5 Big Brokerage Buzz Words (And What They Actually Mean For You)
We all know the classic broker type: they throw around jargon that confuses you and you start to think… I don’t know what that means, but it must be important. Office leasing isn’t that complicated, and we’re here to share the most common big brokerage buzz words and what they actually mean for you.
Deal Velocity
The speed at which a company can negotiate and sign a contract to close a transaction.
You’ll see headlines and hear brokers talking about '“deal velocity” picking up. That’s a big brokerage way of saying a lot of deals are happening and the market is coming back. Here’s the truth: "it’s still very much a tenant’s market, and “deal velocity” may be picking up as companies come back to the office, but it’s not anywhere near pre-COVID levels. The rush to close a deal is no longer the pace at which New Yorkers walk. We’re taking our time to find you the right space and get you the best deal.
Vacancy Rate
Vacancy rate is expressed as a percentage of the amount of time a office could be rented to the amount of time a office was actually rented.
It’s the fancy way of stating the percentage of empty office space there is in a building or area. What does this mean to you? It means when there is a higher amount of empty offices, you tend to get a better deal because landlords are trying to fill the spaces. Currently in New York, the commercial real estate market is at 16% for direct office space and 5% for subleases.
Leverage the Market
The act of a client using the current market as a tool to get a better deal.
In reality, you don’t need a positive market – all you need is a broker who will get you a good deal, whether or not the market is in your favor. Lucky for you, we only represent tenants, so we can always get you the best deal because we don’t have allegiance to the landlord.
Dual Agency
The act of a real estate company representing both the tenant and the landlord in a real estate transaction.
Most tenants don’t know they are being “dual agented”, as they assume the broker has their best interest in mind, but in reality, the broker has the landlord’s back. We wrote an article on this topic, see here.
Workplace Solutions
A team that has experience in finding out what the client’s needs are.
Most big brokers convince you that you need to consult workplace solutions before finding your next space, which means more time with your brokerage and not in your new office space. If you have a good broker, you don’t need the help from an additional team. The broker should understand your needs and work with you one on one.
The Takeaway:
These big broker buzz words are the last thing you will hear from us. We’re straightforward and make the process of finding a new space easy. Unlike other brokers, we only represent the tenant. What does this mean to you? It means you are number one in our eyes, not the landlord. We give you top tier service as well as the best deal.
Contact Us:
Please reach out to our founder, Bert Rosenblatt at brosenblatt@vicuspartners.com, or at (917) 862-8820 to see if we can answer any questions or get started finding you the right space solution.
