So can a tenant in negotiation ever ask, say, Hey, we don't have money, we want to give you equity in our company. Does that come up a lot
that came up in the early 90s when I was working for prologue just and some other, you know, counselor
told me a story there.
No, I just know that they that that's been a discussion, it's not something that they would always do. Okay. But potentially that came up quite a bit. Yeah.
Is that happened now that are you said back in well.com time. But
yeah, I think landlords a little more cautious because they you know, they could have been burned in the past with a lot of that. And they may have new guidelines to that that's not really their core business. So they should just be doing what they're supposed to be doing. And not not investing necessarily in their tenants business. But I know that some do.
So search, some you got to understand are some that are smaller landlords, they may take a risk big land or the institutional guys I have multiple tenants in your office building, that probably is not going to happen.
Right. Okay. Interested? So some of our viewers are overseas and countries such as China and Korea all over the world, how's it different for them? When they come to Silicon Valley? What questions should they be asking? I mean, they don't have a US credit history, they may not have a credit history at all, depending on where they're from, how does how did they go about finding a location?
Well, they partner up with folks like us, who can help us help identify where they would like to be. And this is after we find out you know more about them and more details about them. But, you know,
I have a group I'm working with right now. And it's just investigation as you go day by day, you know, because sometimes you're dealing with them on a whole different time frame, you know, like, I'm, I'm having conference calls at nine o'clock at night. Yeah. Which is like, their, their morning or Yeah, so you just try to accommodate and figure out what they're looking for. And when they're here, ask them as many questions as you possibly can on on, you know, how are you? How are you established already? Are you a California Corporation? Have you incorporated yet? What's the process that you're going about right now, in terms of how you're going to finance this operation? And
so if I'm a company from will say, Ukraine from unit city from mats area, who is a guest earlier and I come to Silicon Valley from day one, I found a location How long does it take from when I when I decide to location, or when I connect with you to start looking for a location to sign a lease to be able to move in? Can this be done in a month? Or is it a lot longer, lot shorter?
Yeah, I don't think a month will do it, in my opinion, depending on how ready their company is overseas. Because I work with a lot of companies overseas, that are just not aware of what the due diligence requirement from a landlord tenant are in a landlord. A lot of landlords, you know, sincerely coming from overseas, that level of trust is not as strong as a local company.
And it takes them time because they're traveling back and forth. And when they're here, they're seeing things, but then they go back, and then they're reporting their directors. And then maybe those folks need to come out and see the property. And there's, there's a lot of back and forth, back and forth, that initially can happen in the first two to three months of helping this client even identify space. So you'd recommend an overseas founder, one, one of the people on his team to come to Silicon Valley, meet a broker, build that relationship on maybe trip one
trip to come see a few locations, Chip number three, kind of make the decision and then trip for I mean, that's, that's normal. That's normal.
Yeah, and I would say anywhere from two to six months. But I, you know, it depends how large of a company you're dealing with to. And sometimes you can find a space immediately if it's, you know,
maybe it was a smaller space, and you've got a growing company, 10 employees, 20 employees, we've got plenty of options may not do take too long, you get into some bigger size requirements. And then, you know, you want to give yourself a longer window, do anyone from overseas come here with completely off the wall expectations, you know, I want this office, I'll pay this much you go, I'm sorry. That's, that's the price of a chair it Do you ever come across that
I do. I mean, like, it's not way off. But it's more like, you know, the send somebody else that's not really and real estate or tenant space acquisition environment, they may send somebody from marketing or something, and they may not know what the landlord expecting or how to work with a broker. So there's a lot of back and forth, and we try to help them prepare by telling them that we need access, or the landlord needs to look at your financials and your business plan and that sort of thing. And so they have to be ready to provide that kind of material
is there any like vocabulary, these, you know, price per square foot or things like that, that if they know before meeting, you could say they have a lot of time?
Well, you know, a lot of time we're educating them on the on these buzzwords like ti was, you know, tenant improvement. And sometimes we just say, you know, we're kind of tip looking for, and they don't the tenant improvement. And that's important because one client of mine wanted a lab within their
part of their r&d operation. So then I was asking them about the kind of power that they might be, you know, power needs that they might have. And he he wasn't so sure about that. So that's pretty critical. Because if you're going to do a lot have a lab component, you may need 200 to 400 amps of power in your space. So it's important because then now he'll go back and ask the key questions that he needs to be able to do you ever give potential tenants a list of questions and you
say, answer all these before the next time we talk? Yeah, yeah, definitely. Yeah. What up? What advice would you give a founder out there that hasn't found any office space yet that's still working at home on when they first talked to landlords or what they should be thinking of other than what we've already talked about. So far, we've talked about location of your employees, we've talked about transportation, we've talked about lease options. We've talked about talking to brokers who can make introductions, and this is all amazing. what's what's border to know.
Another thing that I like to do is recommend a good business attorney. Oh, because, as you know, we're here to help with this least process from start to finish. But when you get into the business points of the lease agreement on what you've negotiated in terms, there's also the boilerplate language within the Leafs and if you're if you know, foreign company company here, you're not really familiar with a lot of leafs language, okay, highly advise that they use business attorneys to review this documentation because we're not attorneys, you know, we help negotiate these deals, but to protect them, that's just an important part. Do you have a business attorney Do you need a reference to a good local real estate attorney Have you see a when that because they didn't have an attorney got in some hot water later on,
not too much hot water, that
never really hot water, but it's just something that they, you know, it's not easy language for them to review on their own. Yeah. Okay. And so they should have a second pair of eyes to take a look at that and what their needs are.
And Carlos, what advice would you give to a founder
before you met them, you know, any information you wish to pass on to someone,
as far as leases are concerned, most epic both seem to think about their distributed strategic location where they want to be and if it fits their needs. I mean, that's the bottom line. I mean,
I think that they allow them made think that they need a certain thing, but a lot of times, it's better for them to be in a shared environment, or maybe find somebody that has a complimentary type of business with them, that they can go in together, there might provide some synergy to them, and you can make those kind of introductions as well.
That's great. And married before time runs out. Yes, please talk about how people can contact you and a little brief overview of yourself for more time.
Sure. So again, Mary blazer. I'm with Newmark Knight Frank and folks can reach me at my email which is m blazer at n g. k. f.com
we have our company website WWW dot NGK f.com as well.
Carlos Carlos Toronto Kwan, one number 415-608-8409 and we have dedicated 10 representation agents in my firm.
That's great. So Mary Carlos, I want to thank you guys for taking the time coming here on Silicon Valley successes and people at home. For further information, please visit our website. Silicon Valley successes comm check us out on YouTube, Facebook, and all the other social media and we hope that you got a lot out of this. And in the future we're going to have more guests from investment bankers, bookkeepers, we have some amazing founders coming up with in the next few episodes. So we look forward to your future attendance. And thank you again for taking the time to to watch.
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