Unlike commercial real estate brokers that represent landlords and owners, Tenant Representation services advisors specialize in representing the best interests of tenants and occupiers on the lease and purchase of commercial real estate
The value gained from hiring a tenant representation advisor to handle corporate real estate matters, 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 of commercial tenant representation services. With real estate typically being one of a business’s largest expenses, companies can’t afford to overlook the benefits of professional tenant representation services, when so much is potentially at stake.
Most 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 advisor
Industry standard listing agreements compensate the landlord’s broker with an industry standard fee, which the landlord’s broker shares with the tenant’s/buyer’s tenant representation advisor if they have one. This incentivizes the landlord’s broker to find a tenant that isn’t benefiting from their own tenant representation services, because the landlord’s broker will receive the entire fee for negotiating against them. There’s typically no discount to be had by not hiring your own tenant representation advisor, so you might as well take advantage of this service because the full commission will be paid on each listing whether you are represented or not. Furthermore, tenant advisors ‘ negotiating expertise and intimate knowledge of commercial real estate can typically achieve cost savings several times greater than even the full listing fee.
“You might as well take advantage of tenant representation services because the full commission will be paid on each listing whether you are represented or not.”
Avoid conflicts of interest unlike a landlord’s broker, your tenant representation advisor 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 services advisor obligation is to represent your best interests only. So, you expose yourself to a serious 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 advisor who is committed and accountable to you only as their client. Unlike a landlord’s broker, your exclusive tenant representation advisor is 100% accountable and committed to you because they have a fiduciary obligation to represent your best interests, not those of a landlord.
Unlike brokers that represent landlords and owners, tenant representation services advisors can avoid conflicts of interest by specializing in exclusively representing commercial tenants and occupiers. The best way to avoid a conflict of interest yourself is to ask your advisor if they have any property listings that meet your real estate requirements, or if they’re currently representing or have a relationship with competing businesses. You should also 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 advisor knows they will ultimately be rewarded for their 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 can be very time consuming and can place a huge drain on company time, money and resources. Tenant representation services advisors 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 tangible personal time and money while you focus on running your business. Your exclusive tenant representation services advisor will also ensure your real estate costs are reduced as much as possible, 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 tenant representation services advisor that understands all the pitfalls and intricacies of the transaction. We take a big chunk of risk out of the equation by professionally and expertly managing the process down to the smallest detail. We also advise 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 services 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 services advisor 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 representation advisor’s role is to provide you with the comprehensive data and impartial advice you need to make the right corporate real estate decisions. This will, 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 advisor, it would be extremely time consuming to attempt to thoroughly survey your target market. Unfortunately, unlike the residential market, too many commercial office space listings are not available online to the public. Furthermore, contacting random landlord/listing brokers is unlikely to give you exposure to every available opportunity, because they may only introduce their listings, and calling numerous brokers is extremely time consuming. A landlord listing broker is encouraged to steer tenants to their own listings as they typically receive double the fee if they represent their client, the landlord, as well as the tenant. Tenant representation services advisors should have no incentive whatsoever to steer you to particular listings and should be completely impartial because they are representing you, the tenant. And they can expect to receive the same listing fee structure regardless of the property.
By hiring a competent tenant representation services advisor, you should be exposed to every available listing opportunity and also receive impartial, objective advice on the suitability of the space to your business needs. A good tenant representation advisor 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!