Office Tenant’s Guide to Commercial Real Estate Tenant Representation

Office Tenant's Guide to Commercial Real Estate Tenant RepresentationUnlike brokers that represent landlords and owners, Tenant Representation brokers specialize in representing the best interests of tenants and space users only on the lease and purchase of commercial real estate.

The value a business can gain from hiring a tenant representation broker to handle its corporate office space, just as it would hire a CPA for financial and an attorney for legal matters, is so significant, it’s essential every business owner understands the benefits. With real estate typically being a business’s second largest expense, companies can’t afford to overlook the benefits of professional tenant representation services when thousands of dollars are ultimately at stake.

Successful, savvy business owners either employ an in-house corporate real estate director to manage their property, or outsource their requirements to a professional tenant representation advisor. Those that don’t are missing out – on potentially thousands of dollars in lost revenue and wasted money that could quickly and easily be converted into profit!

There are no savings to be had by not hiring a tenant representation broker.

Every listing agreement compensates the landlord’s broker with an industry standard fee, which the landlord’s broker shares with the tenant’s/buyer’s tenant representation broker if they have one. This incentivizes the landlord’s broker to find a tenant that isn’t benefitting from their own tenant representation broker, because the landlord’s broker will receive the entire fee for negotiating against them! There is no discount to be had by not hiring your own tenant representation broker so you should take advantage of this service because the full commission WILL be paid on every listing whether you are represented or not. Furthermore, tenant brokers’ negotiating expertise and intimate knowledge of commercial real estate can easily save you an average of 30% in occupancy costs in today’s market, several times greater than the full listing fee!

You can quickly and easily save thousands of dollars by hiring an expert commercial real estate negotiator.

An experienced tenant representation broker’s negotiating expertise can typically reduce your occupancy costs by approximately 30%, several times the total commission paid on a commercial lease transaction! The office leasing and buying process is complicated and risky and should only be handled by an experienced professional. Just as you hire a CPA for financial and an attorney for legal matters, hiring an expert tenant representation negotiator to navigate the complicated and risky commercial real estate process is essential to achieve the maximum money and time savings, protection and benefits for your business.

Avoid conflicts of interest unlike a landlord’s broker, your tenant representation broker is 100% committed and accountable to you only.

Just as a landlord’s broker’s obligation is to represent their client’s best interests, not that of a tenant’s, your tenant representation broker’s obligation is to represent your best interests only. Hence, you expose yourself to a huge conflict of interest when you use one or several landlord brokers to “negotiate” for you on their own listings, and you are far less likely to receive the level of service you would from a tenant representation broker who is committed and accountable to you only as their client. Unlike a landlord’s broker, your exclusive tenant representation broker is 100% accountable and committed to you because they have a legal responsibility to represent your best interests, not those of a landlord.

Unlike brokers that represent landlords and owners, tenant representation brokers avoid conflicts of interest by specializing in exclusively representing commercial tenants and space users. The best way to avoid a conflict of interest and ensure your broker is representing your best interests is to execute an agreement acknowledging their legal obligation and duty as your representative. By doing this, you can also expect a higher level of service, commitment and accountability as the broker knows he will ultimately be rewarded for his efforts. Owners and landlords exclusively engage their own brokers to guarantee the best possible terms and you should too!

Save hours of your valuable time and thousands in company dollars by hiring a professional to manage the real estate process for you.

When you’re running a business, time is money, and searching for space and negotiating office lease transactions often takes longer than expected! The commercial office leasing and buying process is extremely time consuming and can place a huge drain on company time, money and resources. Not only do tenant brokers advise you on the best strategy so you don’t head off in the wrong direction, they’ll save you huge amounts of time by preparing property listing reports, scheduling and conducting property tours, submitting proposals, negotiating and reviewing leases and managing tenant improvement and relocation projects. Outsource everything but the decision making to your tenant representation broker and benefit from the peace of mind that they will professionally manage the process and save you a huge amount of personal time and money while you focus on running your business. Your exclusive tenant representation broker will of course also save you thousands of dollars in occupancy costs by negotiating the maximum concessions on every transaction.

Protect yourself from exposure to real estate risk.

The office leasing and buying process is complicated and risky. Just as you would hire a CPA to manage your taxes and an attorney to represent you on legal matters, the real estate process should only be managed by an experienced professional that understands all the pitfalls and intricacies of the transaction. We take risk out of the equation by professionally and expertly managing the process down to the smallest detail and advising you on the most risk-free strategy for achieving your objectives and protecting your business from unexpected real estate risk.

Benefit from professional tenant representation to achieve the best results for your business.

Due to the relatively inert nature of real estate, maximizing the operational efficiency of your office space can be a challenge, especially if your business and your space needs are evolving. Opportunities for businesses to grow and change are often hindered due to the restrictions placed upon them by their office space. Don’t let your office space hold you back! Find a tenant representation broker with the expertise you need when expanding, consolidating, or relocating facilities, renewing or restructuring existing leases or purchasing a commercial property for your business.

A tenant broker’s role is is to provide you with the comprehensive data and impartial advice you need to make the right corporate real estate decisions and, in turn, provide the most economical, operationally effective and risk free real estate solutions for your business.

Get instant access to every available real estate listing and opportunity.

The most important phase of the real estate process is identifying and qualifying suitable opportunities to lease or purchase. Without a tenant representation broker it would be extremely time consuming and futile to attempt to thoroughly survey your target market as, unlike the residential market, the vast majority of commercial office space listings are not available online. Furthermore, searching for commercial space through landlord/listing broker is unlikely to give you exposure to every available opportunity as they may only introduce their listings, and calling numerous brokers is extremely time consuming. A landlord broker is encouraged to steer tenants to their own listings as they receive double the fee if they represent their client, the landlord, as well as the tenant. Tenant representation brokers have no incentive whatsoever to steer you to particular listings and are completely impartial as they are representing you, the tenant, and are subject to the same listing fee structure regardless of the property.

By hiring a tenant representation broker, you can be guaranteed exposure to every available listing opportunity and also receive impartial, objective advice on the suitability of the space to your business needs. A good tenant broker will go to great lengths to assist clients in determining their specific real estate requirements and locate and evaluate properties that meet their exact needs. Not only should they have access to all the commercial real estate multiple listing services, but their in-depth knowledge of specific commercial real estate submarkets will give you access to all off-market availabilities and pocket listings to guarantee you access to every opportunity. They will also prepare a comprehensive survey of every commercial MLS database, leverage their intimate knowledge of the marketplace to research every suitable off-market property and aggressively market your requirement to every owner and listing broker. This creates powerful negotiating leverage as multiple landlords compete for your business!