In the following section, we’ll explore the various methods for creating a deal for an existing tenant. To ensure the deal is correctly recognized as an existing tenant deal in both Deal Manager and Voyager, it's essential to initiate it through either the Tenants or Spaces dashboard.
How to Initiate an Existing Tenant Deal
To create an Existing Tenant deal, we’ll go to +Add button found in the Deal Dashboard.
Now I must select the specific amendment on the tenant I wish to renew. This allows you to choose the specific units to create a deal on or the specific existing agreements we are creating a deal on. If multiple options are available, checking all boxes will allow you to create a combined renewal with all units.
After saving, a deal entry page appears. Because this is an existing tenant, we don’t have to add any information in the initial deal entry (Tenant Rep field can be filled out if working with a tenant broker vs the tenant directly). Instead, we need to scroll to the bottom of this form and click on the Add Proposal banner. Once clicked this will open the Proposal Entry form. This will default to the existing terms but allow for you to over-ride any field so that these terms are specific to this deal. Once completed hit save to successfully create the existing tenant deal.
Proposal Entry Form:
Required Fields on Proposal Entry
There are some fields that are required before a proposal can be saved.
Lease Type: Select from dropdown menu.
Space: Current space will auto populate here from current amendment.
Proposed SF: Will default to SF of the space selected above.
Start Date: The proposed start date of the Deal.
Term: Number of months for the proposed Deal.
Starting Rent: The existing rent will auto populate here. Enter in the new starting rent for this proposal. Dropdown option allows for denoting rent in $/SF/YR, $/SF/MO, Flat Amount Annual, Flat Amount Monthly
Optional Fields on Proposal Entry
There are many fields that are available depending on the type of deal that will affect Deal Economics. These may not be required for every deal but should be entered as they exist in an offering to the tenant.
Proposal Name: This can be changed to any name you would like to call the proposal. We will default a name but this can always be over-ridden (/ex/ Initial Proposal 1, Tenant Counter 1, Final Version, etc)
Free Rent Schedule: Using the Add Step button you can add free rent steps to your proposal. You would select the start month, the number of months, and the % of rent that will be abated. In the below example Rent will be 100% abated at Month 1 (start of the lease) for 3 months.
Rent Escalation: Enter in the % or /sf escalations for this proposal. Leave blank for deals with no rent escalations.
Additional Charges: Additional Revenue charges to be added to the deal and counted towards our NER Calculation. Simply click Add Charge and select the additional charge from the list of values available.
Expenses: Expenses will auto-populate based on the Actual/Budgeted property level expenses. You can over-ride to other values if desired. Landlord Year 1 denotes non-Recoverable expenses. Tenant Year 1 denotes Recoverable expenses.
Transaction Costs: If this deal requires a Tenant Improvement or any other type of leasing cost (landlordwork/concessions) then select the appropriate cost from the dropdown and input the $/SF or flat amount of the cost. Additional costs can be added by selecting “Add Custom Cost”
Commissions: Select the Commission dropdown that applies to this deal for the Landlord Rep (you) and the Tenant Rep (tenant broker/representative).
Security Deposit: If there is an additional security deposit due for renewal, enter in the total dollar amount of security deposit if known.
Security Deposit Notes: If the security deposit is yet to be determined notes can be entered here to discern what security deposit would be.
Once saving the initial proposal entry we will then change the stage to proposal. To do this simply click on the Deal Stage then select Proposal and hit update.