Real estate self defense.

In the current economy, corporations are not only busy concentrating on their own core businesses, but are also eager to keep abreast of dynamic changes in the commercial real estate field, according to Andrew B. Zezas of the Edward S. Gordon Company of New Jersey, who lectures on "real estate self defense" for the American Management Association twice a year.

"The typical company spends an average of 8.5 percent of its gross revenue on providing facilities for employees and product," Zezas explained. "Since this is often their second most expensive line item, next to labor costs, you could say they are all in the real estate business."

In preparing for each of the dozen seminars entitled " Real Estate Economics - Landlord Tenant Relationships," he has presented over the years, Zezas finds himself updating his curriculum more frequently.

The real estate markets are in constant flux," Zezas said.

"Trying to implement a transaction without an accurate understanding of market dynamics is like trying to hit a moving target."

In many submarkets around the country rental prices have declined considerably while offering packages, including tenant improvements and concessions, have increased. This facilitates the acquisition of space in premier buildings to a much broader tenant market. According to Zezas, a specialized knowledge of the local markets, and how they differ from each other, is imperative to secure below market transactions.

"Real estate self defense" strategies include:

*Reviewing the landlord's financials. A landlord's insolvency can result in his inability to fund tenant improvements and/or operate buildings. It once was the landlord who demanded to see the tenant's financial statement. Today, it should go both ways. It is important for the tenant to review the landlord's financial condition prior to entering active negotiations.

*Even up the sides. Get a professional adviser on your side of the table. Market conditions and deal structures are changing rapidly. Since landlords "eat, sleep and drink" real estate, tenants should hire their own experts, who understand the landlord's mentality, costs and strategies, as well as local market dynamics.

*Information is key. Get access to the latest and most accurate information available. Local submarkets may vary, in terms of transactional structures, availabilities, landlord creditworthiness, etc. Familiarity with one submarket can often be of little benefit when negotiating elsewhere.

The American Marketing Association holds its basic course in facilities planning semi-annually at its center in New York City.