Tenants that signed leases 3 or more years ago may now be paying 20% or more above market. By restructuring their leases early tenants can obtain rental rate discounts, lease concessions and allowances for improvements. This can save 20% or more off their gross occupancy costs.

As building owners strive to maximize property values most leases have an annual escalation clause that may vary from 25¢ to $1.00 per foot per year. This can result in lease rates as much as 20% to 30% above the current market. When market dynamics are flat and favor tenants, as they do now, this is especially true. In addition to reduced rents, rental abatements and refurbishing allowances are also common concessions granted for an extension in lease term. Other items to consider when negotiating a lease include operating expense exclusions, renewal option language and other rights, which provide greater flexibility for tenants.

TaTonka Real Estate Advisors focuses strictly on representing the interests of tenants and buyers of commercial space. This eliminates a conflict of interest and uniquely positions us to give you sound advice to reduce your costs while optimizing your space and lease terms to better serve your business.

Our team is experienced, respected, and trusted for its integrity, and has been serving Minnesota businesses for over 25 years.

For a confidential review of your lease to learn if you may benefit from present market conditions, contact TaTonka Real Estate Advisors at 612-466-7300.

If your space requirements are changing we can also help you to identify a plan and appropriate time line to implement a successful real estate strategy which may include relocation.

TaTonka serves office, industrial, retail, medical and land users throughout the Twin Cities market as well as nationally through our network of SIOR advisors which is the Society of Industrial and Office Realtors.

1. TaTonka does not represent institutional owners so we are free to negotiate on our client’s behalf without conflict or compromise.




2. TaTonka listens carefully to fully understand our client’s goals and objectives.




3. TaTonka’s market knowledge and high level of activity provides valuable insight into available properties, rental rates and concessions that can be negotiated to our client’s benefit.




4. TaTonka uses a ten step process to manage every decision point throughout the evaluation of purchase or lease options.




5. TaTonka’s understanding of the process ensures that a realistic timeline is developed and adhered to through the execution of a real estate plan.




6. TaTonka’s experience and skill in negotiating prudent language in conjunction with our client’s legal counsel will ensure flexibility is achieved without sacrifice.  TaTonka will also make sure all elements of the transaction are clearly and accurately reflected in our client’s final agreement.




7. TaTonka’s understanding of local Landlords and property management firms ensures our clients are well positioned with a stable ownership entity and quality property management firm capable of serving our client’s needs throughout the lease.




8. TaTonka is respected for our integrity.  Because TaTonka knows the market so well and researches viable alternatives for our clients, TaTonka often can pursue several options simultaneously, resulting in maximum leverage when negotiating.




9. 85% of TaTonka’s annual business is generated from either past clients or referrals which is a testimonial to the satisfaction of our clients and the value created by our services.




10. TaTonka values our client relationships and seeks opportunities to help our clients prosper.  TaTonka judges the success of a project by the results we provide and the satisfaction of our clients.

TaTonka Real Estate Advisors is a Twin Cities based commercial real estate advisory firm which represents Tenants and Buyers in their negotiations to lease or purchase commercial space.

We have worked diligently to become the preferred Advisor for the Twin Cities most influential business leaders.

Our staff specializes in Office, Industrial, Medical, Retail, Land and Investment real estate representation with our focus strictly on Tenant and Buyer representation.

We listen carefully to understand our clients’ requirements, goals and objectives.  After establishing a relevant project time line we seek out the most attractive alternatives to maximize our leverage in securing the best possible space and terms.

The dynamics of the current market have created many opportunities for Tenants to reduce costs in return for an extension in term or consideration of relocation.

By reviewing your current terms and comparing them to market, TaTonka can assist you in determining whether this strategy may be beneficial in today’s environment.  Maximum leverage is generally achieved within a 9 to 18 month period prior to a lease expiration; however, if a renewal is the preferred alternative, a 12 to 36 month early renewal may provide a significant savings if an extension in lease term is given in return.

Our understanding of the market, experience in negotiations and patience to tell you when the opportunity is right, has earned us the trust and respect of our clients.

For more information on TaTonka contact us at 612-466-7300 to discuss your requirements in confidence.

From the Minneapolis / St. Paul Business Journal: http://www.bizjournals.com/twincities/print-edition/2011/03/18/wells-fargo-leases-more-space-for.html

Wells Fargo leases more space for mortgage unit in SLP

Premium content from Minneapolis / St. Paul Business Journal – by Jim Hammerand, Staff writer

Date: Friday, March 18, 2011, 5:00am CDT

Wells Fargo & Co. is transferring about 10 percent of its South Minneapolis home-mortgage campus workforce to a west-metro office complex this spring.

Wells Fargo Home Mortgage will move approximately 450 employees from the former Honeywell Inc. headquarters to St. Louis Park, where the lender already rents space for another business line. The division’s highly visible South Minneapolis offices are designed for 4,300 to 4,400 employees and have been “at capacity” for some time, spokeswoman Peggy Gunn said. Heavy snowfall this winter limited parking in the company’s ramps and on local streets.

“We just want to be a good neighbor. If there are lots of our team members who are choosing on-street parking, that has an impact,” Gunn said. The move will allow for more efficient and effective use of the South Minneapolis campus, she said. The employees are headed for St. Louis Park’s Metropoint, at 600 Highway 169 S., just north of Interstate 394. The company already has 57,500 square feet rented there for its St. Louis Park-based insurance group, Wells Fargo Insurance Inc. Wells Fargo’s home mortgage unit will lease an additional 76,500 square feet for three years. The employees are scheduled to pack up and head out in late April.

Wells Fargo bought the 28-acre South Minneapolis campus for $38 million in 2000 after Honeywell moved its headquarters to New Jersey. Wells Fargo overhauled two buildingsand built a 230,000-square-foot office building for 1,300 workers in 2003, investing a total of $175 million in the property.

Totalling 918,500 square feet, Metropoint’s four buildings are owned by Yardley, Pa.- based BPG Properties and managed and leased by New York-based Cushman & Wakefield.

San Francisco-based Wells Fargo has approximately 80 national business lines and corporate divisions, and 14 of them are based in the Twin Cities.

jhammerand@bizjournals.com | (612) 288-2138