Form-of-the-week: Agent Survey Sheet for Nonresidential Property – Tenant or Buyer-Occupant – 320-3

A leasing or buyer’s agent enters into an agreement with a user-client to locate and negotiate a lease or purchase of nonresidential space to house their business operations.

On determining the client’s space requirements, the agent turns to the task of collecting information on available properties. From the data assembled, qualifying properties most likely to satisfy the client’s needs are identified.

Here, when leasing agents begin to seek out property information, the issue becomes: “what is the best way to quickly gather pertinent details on available properties for later analysis?”

The answer lies in the use of a quick-fact checklist which itemizes the types of data and information required on a property to determine its suitability for the client’s need for space. One such itemized checklist is the Agent Survey Sheet for Nonresidential Property. [See first tuesday Form 320-3]

The Agent survey contains a series of questions to be asked of the owner’s agent, or the owner if the property is not listed with a broker. Armed with detailed information on available properties, the agent and their user-client can determine which of the available properties best meets the client’s needs. At this point, enough is known about a property to determine  whether or not to submit a letter of intent (LOI) or an offer to lease or buy, and if so, on what terms. Essentially, the survey is used as a prudent risk mitigation practice for the broker. [See first tuesday Form 556]

The Agent Survey Sheet for Nonresidential Property contains probing questions for use by the user’s agent. Thus, you elicit tight and accurate responses from an owner’s agent or the owner relating to:

1. property facts, such as:

• the usable square footage of the improvements and the lot [See Form 320-3 §§1.2, 1.3];
• the age of the property [See Form 320-3 §1.4]; and
• property specifications, including its construction type, zoning, roof type and number of parking spaces available. [See Form 320-3 §§1.5-1.8]

2. office/improved space, such as:

• its usable square footage [See Form 320-3 §2.1];
• facilities within the improved space including the number of bathrooms, and descriptions of the kitchen and breakroom/staff lounge [See Form 320-3 §§ 2.2-2.4]; and
• whether the office/improved space contains sprinklers. [See Form 320-3 §2.5]

3. warehouse space, such as:

• warehouse specifications, including usable square footage, ceiling clearance height, type of flooring and type of lighting [See Form 320-3 §§3.1-3.3, 3.12];
• a description of the loading docks, truck wells, ground level doors and railroad spur [See Form 320-3 §§3.4-3.8];
• specifications for the warehouse sprinkler system [See Form 320-3 §3.9]; and
• the electric service panel capacity (amps). [See Form 320-3 §3.11]

4. lease terms, such as:

• asking rent amount or base rent sought [See Form 320-3 §§4.1, 4.2];
• move-in incentives offered by the owner [See Form 320-3 §4.3];
• which maintenance costs and utility expenses are paid by the owner [See Form 320-3 §§4.11, 4.12];
• whether the owner or tenant pays the property taxes, insurance premiums, and like items [See Form 320-3 §4.13];
• any monthly common area maintenance (CAM) charges sought [See Form 320-3 §4.14]; and
• whether the owner or tenant pays for any tenant improvements (TIs). [See Form 320-3 §4.15]

5. sales terms, such as:

• the sales price and whether it was raised or reduced, and if so, when [See Form 320-3 §5.2];
• the sale price expected by the seller, the approximate fair market value (FMV) of the property, and the price the seller initially paid for the property [See Form 320-3 §5.3, 5.4]; and
• what existing financing encumbers the property, and whether the owner agrees to carryback a portion of the purchase price. [See Form 320-3 §5.7]

6. the location of the property and features of the surrounding area, such as:

• a description of the property’s surrounding area [See Form 320-3 §6.1];
• the volume of foot and street traffic the location receives [See Form 320-3 §6.2];
• distance to area amenities, such as freeway access, the local post office, banks, police and fire stations, restaurants, shopping and airport [See Form 320-3 §§6.3, 6.5-6.9, 6.11]; and
• problems with vandalism or crime reported in the area, known earthquake faults and seismic hazards, or noise nuisances. [See Form 320-3 §§6.12-6.14]

7. property investigations such as:

• available printed information on the property the owner’s agent can provide, including a property profile, zoning information, MLS printout and flyer, floor plan, a Nonresidential Building Energy Use Disclosure consisting of a Statement of Energy Performance, Data Checklist and Facility Summary and title information [See Form 320-3 §§7.1, 7.2];
• the reason for owner leasing or selling the property [See Form 320-3 §7.4];
• whether the property is in compliance with city ordinances [See Form 320-3 §7.9]; and
• a description of the existing internet connections and phone lines, existing energy efficiency improvements and the ENERGY STAR® Energy Performance Score. [See Form 320-3 §§7.11-7.13]; and

8. operating expenses. [See Form 320-3 §8.1-8.19]

The Agent Survey Sheet for Nonresidential Property functions as a thorough quick-reference guide. By using it, the agent has considered and compiled all the advantageous and adverse property information on a property in a single document. It makes for an easy, focused review by the agent and the user-client.