Nothing. Orange County tenant representation brokers are typically paid by the landlord on all commercial leases, by simply sharing the listing fee with the landlord’s broker. This fee is typically paid in full whether you’re represented or not.
However, while a tenant representation broker in Orange County should not charge you for representation, that really doesn’t mean the service is free!
Commercial real estate leasing commissions are typically factored into a building’s financial proforma, and end up comprising a percentage of the rent paid, typically between 4-6% of the total contract base rent over the lease term. So, as a tenant, you’re effectively paying for the benefit of a tenant representation advisor whether you have one or not, on all new commercial leases.
The trick here is obviously to hire a tenant representation advisor to not only recoup the leasing commissions you’re subsidizing in your rent, but to find a tenant representation advisor that you trust to do a lot more.
Like everything else, smart business leaders outsource and delegate everything outside of their core competency.
However, there’s an inherent conflict of interest in hiring a representative who’s compensation is not only paid by the landlord (the guy you’re negotiating against), but based off the monetary value you create for them. A competent Orange County tenant representation broker should be capable of negotiating savings well in excess of the standard leasing commission, while saving you a lot of valuable time and stress in the interim, so you can stay focused on your business. By doing this, they’re proving their value and earning your trust for future business and referrals, while complying with their fiduciary obligation to represent your best interests.
Orange County Tenant Representation
In Orange County tenant representation brokers typically receive 4% of the total contract rent on a new office lease, and between 2% and 4% of the contract base rent on office lease renewals. On industrial properties, an Orange County tenant representation broker typically receive 3% of the total contract base rent.
Orange County tenant representation is so commonplace now that most businesses have grown to rely on it to save valuable time, for cost control and risk management. And because the workplace has a bigger impact on a business than ever before, directly impacting branding, recruitment, retention and productivity for example. Landlords have their own advisors, so why wouldn’t a tenant?
Here are some great examples of the results our Orange County Tenant Representation services have achieved for our clients.