Why You Need a Tenant Rep Broker
As a business owner, you know that you must enlist the services of other professionals. For example, you probably consult with an accountant, a lawyer and perhaps a favorite mentor so you are able to successfully maximize performance and profit. A tenant representation broker is simply another professional that can help when it’s time to rent new space or renew a lease. Read on to learn why working with a tenant rep broker is beneficial for you and your company.
A Tenant Rep Works for You
Listing agents, or landlord’s representatives, can certainly be helpful. Ultimately, however, their priority is the landlord’s best interest. They work to fill vacancies quickly, so a landlord can be as profitable as possible.
A tenant rep broker, on the other hand, works for you. He or she is there to ensure that you find the right space for the specific needs of your company at a fair price and on the best terms.
Furthermore, as a tenant you are not the one responsible for paying your rep’s commission. The landlord covers the cost of all brokers’ services. In fact, landlords usually plan for landlord and tenant commission fees in their operating budgets. And landlords tend to take businesses working with tenant reps more seriously than those that go it alone. In other words, you have nothing to lose but a lot to gain from engaging a tenant rep.
Understands the Market
A tenant rep makes a career out of understanding the commercial real estate market inside and out. He or she will know what a fair, overpriced or bargain rent price is in the areas you are considering. They monitor changing real estate trends in order to know current rates and lease allowances.
In addition, brokers stay on top of things like zoning changes, tax structures, new developments and other factors that might influence the decision about where to move your company.
Analyzing Your Business Needs is Critically Important
Think you know what kind of space would be best for your company? Experienced tenant reps can often provide insights into pieces of the puzzle that you might not even know to examine. They will look at your business plan, analyze your finances, consider your brand image, the competition and your spatial needs and weigh your budget and opportunities for growth. Combining all of this information, a broker is able to find locations that are a perfect fit now and for the future.
Tenant Reps Have Inside Information
Yes, there are free commercial real estate listing sites online that can give you a sense of the market. But the information you find there may not be up-to-date. A broker has access to many databases that industry professionals use to list and find commercial spaces, as well as easily compare potential locations and their terms.
Keep in mind, not every space available is listed. There are many that never make it to market. A tenant rep, however, will likely have industry connections to share information about places that you would not otherwise know about. Between those spaces that are listed and the ones that aren’t, a rep can offer more options that match your needs.
Conduct Lease Negotiations with Creativity and Strategy
If you do not have experience in the real estate industry, then negotiating a lease that is favorable can be a difficult challenge. Are you knowledgeable about things like code compliance fees, renewal options or tenant improvement allowances? These are all items on a lease that are negotiable. A tenant rep will review the lease, negotiate the best rates, concessions and terms and be your guide through the leasing process. Creativity and strategy are important elements in constructing the most favorable overall economic package for the tenant.
Connections to Other Professionals and Project Management
If they’ve worked in your market for a while, then your rep is likely to have connections with qualified professionals to help after you’ve relocated. They can put you in touch with an architect or general contractor, IT professionals, engineers and other vendors they’ve worked with before. This way, you won’t need to spend too much time searching for and interviewing them.
Your Partner for the Long Run
A good tenant rep will not disappear once you’ve signed the lease. They are there when it’s time to renegotiate a lease or find a new location because you are expanding or downsizing. Also, if you and your landlord are having trouble seeing eye to eye on something, the tenant rep that brought you together is often the best person to help iron out a solution.
You Can Focus on Your Business
With all that a tenant rep does, you will be able to focus on running your business rather than taking the hours and hours needed to learn about the commercial real estate market, find spaces to consider and negotiate a lease. Make a tenant rep a member of your team to ensure the performance and profitability of your company for years to come.